Wiit (WIIT) H1 2024 earnings summary

Executive summary

• Revenues rose 16.3% year-over-year to €74.6 million, with adjusted revenues up 13.4% to €72.7 million, driven by organic growth in Italy and Germany and contributions from Edge & Cloud and Econis acquisitions.

• Adjusted EBITDA increased 9.6% to €26.7 million, with a margin of 36.7% (like-for-like 39.8%), reflecting strong performance in Italy and Germany but impacted by lower-margin acquisitions.

• Adjusted net profit grew 10% to €7.3 million; reported net profit surged 70% to €6.5 million, supported by a one-off €1.8 million positive impact from Econis acquisition badwill.

• Commercial pipeline remains strong in Italy and Germany, especially in Manufacturing, Digital Media, ISV, and CPG sectors.

• Significant acquisitions included Econis AG (Switzerland) and Edge & Cloud (Germany), expanding the Group's presence and customer base.

Financial highlights

• Adjusted revenues: €72.7 million (+13.4% YoY); Italy €29.8m, Germany €39.5m, Switzerland €3.4m.

• Adjusted EBITDA: €26.7 million (+9.6% YoY), margin 36.7% (like-for-like 39.8%).

• Adjusted EBIT: €13.9 million (+3.7% YoY), margin 19.1% (like-for-like 21.4%).

• Adjusted net profit: €7.3 million (+10% YoY); reported net profit: €6.5 million (+70.3% YoY).

• Net financial debt: €219.9 million at June 30, 2024, up from €202.2 million at year-end 2023.

Outlook and guidance

• Management expects continued growth in 2024, supported by a robust commercial pipeline and multi-year contract renewals.

• Focus on improving EBITDA margin through core revenue growth, value-added services, and cost synergies from recent mergers.

• Integration of Econis expected to yield synergies over the next 18 months; M&A scouting in the D-A-CH region continues.

• Organic growth rate for the group expected in the 8–10% range for the full year, supported by strong sales pipeline.

• Net debt forecast to decrease to €200 million by year-end, with reduced CapEx in H2.