Q2 2024 Techstep ASA Earnings Call Transcript
Key Points
- Techstep ASA (LTS:0K2D) has delivered a positive EBITA adjusted for the seventh consecutive quarter, showing a NOK28 million improvement over the last 12 months.
- The company has achieved ISO certification for information security management and has been upgraded to gold in the EcoVadis sustainability performance rating, ranking among the top 5% of global companies evaluated.
- Techstep ASA (LTS:0K2D) has signed several new strategic partnerships and contracts, particularly in Norway and Poland, which are expected to drive future growth.
- The company is transitioning its business model towards more recurring and holistic services, with recurring revenues annualized growing by 4% year over year.
- Techstep ASA (LTS:0K2D) has reduced operating expenses by 12% year over year, contributing to improved profitability and a positive cash flow from operations for the first time in the second quarter.
- Total revenues for the quarter were down 5% from the same period last year, with a notable decline in the Swedish market impacting overall performance.
- Device revenues declined from NOK192 million last year to NOK185 million this quarter, primarily due to reduced gains from end-of-lease contracts.
- Net gross profit decreased by 12% year over year, with a decline in the net gross profit margin by 2 percentage points.
- The Swedish market remains challenging, with weak sales and organizational changes affecting performance.
- The company experienced a net loss of NOK15 million for the period, attributed to non-cash items such as amortization of assets.
Good morning, everyone, and welcome to our Q2 presentation and Q&A session. My name is Morten Meier, and I will, together with our CFO, Ellen Solum, give you an update of our financial results as well as our direction and outlook going forward. At the end of the presentation, we will open up for questions. And again, also during the presentation post questions in the chats.
But let me start with some reflections on the first six months as the CEO here at Techstep. As I said, when I took on this role six months ago, I strongly believe we are in a great position to create history and become the market-leading mobile and circular technology company in Europe by realizing the huge potential we represent combining our own software, world-class expertise, and being one of the most certified mobile device players in Europe. We stand by our ambition, and we are progressing well on this very exciting journey.
Since launching our revised commercial strategy at the beginning of this year, we have had a strong tailwind with new strategic
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