Q2 2024 Knowit AB (publ) Earnings Call Transcript
Key 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.
- 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.
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Welcome to this presentation of Knowit's report for the second-quarter. My name is Per Wallentin I'm the CEO of Knowit and with me here today, I also have Marie Bjorklund our CFO. We can take slide 3, please. First, I would like to take you through some operational highlights for the quarter.
The trend of more stable utilization remans and we are pleased to see that the adjusted EBITDA is improving for the first time since Q1 '23. This is mainly a result of the cost reductions and organizational changes that we have implemented the past year.
We now see signs of improvement in utilization in certain areas, although work on efficiency and optimization of the organization remains we know an increased dialogue among some clients, while others remain cautious and the competition in the market is still intense.
And this means that I don't, we don't expect a quick turnaround in 2024. [Sweden] remains our most challenging market, but we do see some improvements in certain
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