Release Date: July 19, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Adjusted EBITDA improved for the first time since Q1 '23 due to cost reductions and organizational changes.
- Signs of market improvement in Norway and Denmark, with stable conditions in Finland and Poland.
- Solutions business area reported an increased EBITDA margin of 7.3%, driven by improved utilization rates.
- Connectivity business area maintained a solid position in the industry segment, securing new assignments despite market weakness.
- Revenue per FTE increased, indicating better efficiency and productivity.
Negative Points
- Sweden remains the most challenging market with no significant signs of improvement in the public sector.
- Digital agency's EBITDA margin, although improved, is still considered too low, especially in Sweden.
- Overall sales decreased by 4.4%, with a notable reduction in the number of employees.
- Restructuring costs amounted to SEK21 million, reflecting ongoing adjustments to low utilization rates.
- Hourly rates, although increased, are still under pressure due to intense market competition.
Q & A Highlights
Q: How much did the calendar effect contribute to sales and EBIT, and which business area has the largest exposure to Norway?
A: The calendar effect was 11 hours, but the exact amount is not disclosed. The largest exposure to Norway is in the Experience business area. (Marie Bjorklund, CFO)
Q: Can you elaborate on the Swedish market and any improvements in public sector demand?
A: We don't see improvements in the public sector in Sweden yet. We expect potential improvements in 2025. Currently, we see stronger activity in the defense industry and other segments. (Per Wallentin, CEO)
Q: Is the improved utilization related to cybersecurity and defense in connectivity and insight?
A: The improvement is broader and not connected to market development but rather to our own organizational adjustments. (Per Wallentin, CEO)
Q: How do you prioritize between retaining margins versus gaining sales and higher utilization?
A: We consider long-term possibilities and make a balance for each project to decide on pricing and whether to take on new projects. (Per Wallentin, CEO and Marie Bjorklund, CFO)
Q: Have you observed any positive utilization improvement throughout Q2?
A: Yes, we have seen a small increase in utilization month by month during the quarter. (Marie Bjorklund, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
