Q3 2024 Atea ASA Earnings Call Transcript
Key Points
- Atea ASA (ATEAY) reported a 3.1% increase in revenue, reaching NOK8 billion compared to last year.
- Net profit after tax increased by 5.7% to NOK192 million, indicating improved profitability.
- The company experienced high growth in sales of PCs, servers, and storage, contributing positively to hardware revenue.
- Software revenue saw a significant increase of 12.3%, driven by demand for productivity applications, public cloud, and data center solutions.
- Atea ASA (ATEAY) has a strong balance sheet with a net debt of NOK108 million, well below its loan covenants, allowing for a share repurchase program.
- Sales of networking and AV equipment declined, impacting overall hardware revenue growth.
- EBIT in Sweden and Denmark has not yet returned to profit growth, with Sweden experiencing a decline in service sales.
- Atea Finland reported lower revenue and profit due to a recessionary economic environment.
- The company plans a one-time restructuring cost of NOK40 million in Q4, primarily affecting staff in Sweden.
- Networking demand was weaker than expected, with a 12% decline in the quarter, impacting overall performance.
Welcome to the Quarter three presentation of the numbers here in a little bit cold and Gray Oslo. I would say almost like our pairs in Europe's numbers over the last couple of quarters.
For that reason, I've really been looking forward to this day to hopefully give our shareholders some comfort in the progress that we make.
When that is said, the market is absolutely unpredictable, and you need to manoeuvre that in a good way. So, let us take a short look at the main numbers.
The revenue came in at NOK8 billion up 3.1% from last year, the EBIT at NOK307 million up 3% from last year and net profit up almost 6% from last year with a good cash flow. We have a healthy balance sheet, but as normally, I'll leave it to Robert to give you the rest of the good news.
(Inaudible) returned to sales and profit growth in the third quarter of 2024 driven by new customer agreements and improved market conditions across most product categories.
Total gross sales in Quarter three was NOK11.3
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