Q3 2024 Knowit AB (publ) Earnings Call Transcript
Key Points
- Knowit AB (LTS:0GNK) reported an improvement in the EBITA margin for the second consecutive quarter, driven by cost reductions and organizational changes.
- The company's largest business area, Solutions, showed a positive trend in utilization and reported net sales of SEK750 million with an increased EBITA margin of 8.1%.
- Knowit AB (LTS:0GNK) has strong client relationships in Norway, providing a stable foundation despite market uncertainties.
- The company has a solid position in the industry segment, particularly in connectivity, which helps maintain strong results despite market challenges.
- Knowit AB (LTS:0GNK) has a stable balance sheet with a leverage of 1.4, well within its financial target not to exceed two.
- The market remains uncertain with long sales cycles, particularly affecting the Experience and Insight segments in Norway.
- Sweden and Denmark are challenging markets for Knowit AB (LTS:0GNK), requiring cost control and efficiency improvements.
- The Digital Agency Experience segment reported negative results due to a slow start after summer, impacting utilization.
- The company's overall sales decreased by 14% to approximately SEK1.3 billion, with a reduction in employees affecting revenue.
- There is fierce competition in the market, with clients taking longer to decide on new investments, putting pressure on prices.
()-
Thank you. And with me today, I also have Marie Björklund that will talk a little bit later. And first, I would like to take you through some operational highlights during the third quarter.
In our largest business area solutions, we are happy to deliver a continuous positive trend in utilization. And in addition to that, the EBITA margin improved for the second quarter in a row. This is mainly a result of our cost reductions and organizational changes. The market is still uncertain with long sale cycles. After summer, the market had a slow start with projects starting up later than normal, particularly in experience and insight in Norway. We have continued to develop our strong partnership with several customers, creating a very stable foundation during the quarter. In Sweden, we still meet the largest challenges. Although we see some improvements in certain segments, Finland and Denmark are development being strong in some areas, but we still need to work more to reach a stable ground in others.
Well,
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
