Wiit (WIIT) H2 2024 earnings summary

Executive summary

• Adjusted revenues rose 21.9% year-over-year to €158.6M, driven by organic growth in Germany and Italy and contributions from acquisitions (Edge & Cloud, Econis AG, Michgehl & Partner).

• Adjusted EBITDA increased 14.4% to €58.0M, with a margin of 36.6% (like-for-like margin 41.1%), impacted by recent acquisitions.

• Adjusted EBIT reached €29.0M, up from €28.0M in FY2023, with an adjusted margin of 18.3%.

• Net profit reported at €9.3M, up 11.0% from FY2023; adjusted net profit at €14.8M.

• Multi-year order backlog as of January 1, 2025, stands at €247.3M, up €100M year-over-year, reflecting strong contract renewals and new client wins.

Financial highlights

• Group recurring revenues (ARR) at €128.4M, 90.3% of total revenues ex Gecko, up 21.8% year-over-year.

• Operating cash flow generation of €40.4M.

• CAPEX of €31.5M, including €13.5M for IT infrastructure and €13.2M for IFRS16 leasing.

• Dividends paid totaled €7.8M; proposed dividend of €0.30 per share for 2025.

• Adjusted net financial position (debt): €-163.0M (vs. €-154.2M in 2023).

Outlook and guidance

• Continued development of commercial pipeline in Italy and Germany, targeting manufacturing, digital media, ISV, and CPG sectors.

• Cost synergies from recent acquisitions expected to be reflected in the next 12 months, with further margin improvement in 2025, especially in Germany.

• Anticipating high single-digit revenue growth at group level and double-digit growth in new business lines (Cloud Native infrastructure and AI).

• M&A activity in the DACH region to continue as part of growth strategy.