Q2 2024 BTS Group AB Earnings Call Transcript
Key Points
- BTS North America and BTS Other markets experienced significant growth, with North America growing by 12% and Other markets by 8%.
- Combined EBITDA increased by 23%, indicating strong operational performance in key markets.
- The acquisition of The Boda Group has strengthened BTS Group AB's leadership coaching business, contributing to faster growth in this segment.
- BTS Group AB made strategic acquisitions, including Wonderway, which enhances their AI capabilities and offers innovative products like Verity.
- The company is seeing productivity gains through AI experimentation, with a reported 6.5% FTE savings among employees utilizing AI tools.
- BTS Europe faced a challenging quarter with a 23% revenue decline, impacting overall group sales growth.
- Approximately 30% of BTS Europe's revenues were delayed, canceled, or disappeared, affecting financial performance.
- The European market showed signs of conservatism, with project delays and cancellations impacting revenue.
- Despite efforts, BTS Europe did not have a sufficient pipeline to offset the revenue shortfall.
- The newly acquired business in Thailand is expected to have slightly lower margins than BTS Group AB, requiring improvement efforts.
Hello, dear BTS investors. I'm Jessica Skon, CEO of BTS Group. Welcome to our Q2 report. Hope you're all having a lovely summer. I am joining you from San Francisco for this report. And we'll start with the good news, for basically 80% of our business, our two biggest markets, BTS North America and BTS Other markets, grew by 12% in North America and 8% other markets. And together we had an increase in combined EBITDA of 23%.
Now if we look at the group level, our sales only grew 3%. And our EBITDA improved 4% to SEK110 million. The reason for this is because BTS Europe had a tough quarter. Their revenue shrunk by 23%. So despite the poor showing of BTS Europe in terms of their revenue performance, BTS margins continued to remain solid at 15.1%. And our profit after tax remained stable.
So let's dive into a little bit more detail. We're going to start with our biggest unit, which in the second quarter was also the fastest-growing unit, and that's BTS North America. So we're very happy that we've had two quarters in a row of back to double
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