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 Italy and Germany and contributions from new acquisitions 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 rose 7.2% to €22.5M, margin at 19.6%, with like-for-like margin at 23%.

• Adjusted net profit was €12.2M (+4.6% YoY); reported net profit was €10.2M (+50.2%).

• Growth was supported by a strengthened commercial pipeline and new contracts in manufacturing, digital media, ISV, and CPG sectors.

Financial highlights

• Organic revenue growth averaged 6% year-over-year, with Italy at 4.8% and Germany at 7.6%.

• Core recurring revenue accounted for 86.5% of total; 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.

• Cash and cash equivalents at period end were €18.7M, up €5.0M from December 2023.

Outlook and guidance

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

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

• CapEx for 2024 expected to remain within the €27M budget, with a decrease to €22–23M forecasted for 2025.

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

• M&A activity continues in the D-A-CH region, with Germany seen as a key expansion market.