Wiit (WIIT) Q3 2024 earnings summary

Executive summary

• Adjusted revenues rose 19.7% year-over-year to €115.2M for the first nine months of 2024, driven by organic growth in Germany and Italy and contributions from acquisitions including Edge & Cloud and Econis AG.

• Adjusted EBITDA increased 12.9% to €42.6M, with a margin of 37.0% (like-for-like margin 41.6%).

• Adjusted EBIT was €22.5M, up 7.2% year-over-year, with a margin of 19.6% (like-for-like margin 23%).

• Adjusted net profit reached €12.2M (+4.6% YoY), while reported net profit was €10.2M (+50%).

• Commercial pipeline strengthened in Italy and Germany, with new contracts in manufacturing, digital media, ISV, CPG, and medical sectors.

Financial highlights

• Core revenues totaled €99.1M (+19.7% YoY), with 86.5% recurring; Germany at 99%, Italy at 84%, Switzerland at 68%.

• Net financial debt (including IFRS16) was €215.3M as of September 30, 2024, up from €202.2M at year-end 2023.

• Cash flow from operating activities was €27.2M; CapEx totaled €22.8M, mainly for IT infrastructure and contract renewals.

• Group EBITDA margin at 37% (like-for-like 41.6%), EBIT margin at 19.6% (like-for-like 23%).

• Total assets increased to €330.3M from €309.1M at year-end 2023.

Outlook and guidance

• High single-digit core revenue growth expected in both Italy and Germany for 2025, contingent on closing key contracts in Germany.

• Full-year 2024 expected to grow in line with market expectations, with focus on improving EBITDA margin through core revenue growth, value-added services, and cost synergies.

• Integration of Econis AG and recent German mergers expected to yield further synergies in coming quarters.

• Q4 2024 EBITDA consensus of €56M is considered achievable, with recurring revenue expected to step up in Q1 2025.

• CapEx for the full year expected to align with €27M budget, decreasing to €22–23M next year.