In This Article:
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Group Net Sales Growth: 3% in Q4 2024.
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EBITDA: Down 2% in Q4 2024.
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EBITDA Margin: 17% in Q4 2024, compared to 18.1% the previous year.
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BTS Europe Net Sales Growth: 22% in Q4 2024.
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BTS Europe EBITDA Growth: 35% in Q4 2024.
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BTS North America Growth: 3% in Q4 2024.
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BTS Other Markets Growth: 1% for the year 2024.
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Dividend: Issued at 6.1%, up 7%.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BTS Group AB (LTS:0KGY) achieved a 6% EBITDA growth in 2024 despite challenging market conditions.
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BTS Europe experienced a significant rebound with a 22% increase in net sales and a 35% rise in EBITDA in Q4 2024.
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The company's AI tools, particularly from the Wonderway acquisition, are gaining momentum globally, with successful integration into core value propositions.
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Southeast Asia, particularly through the acquisition of SEAC, showed strong development and a robust sales pipeline.
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BTS Group AB is focused on organic growth and operational efficiencies, with initiatives to enhance consultant revenue generation and client relationship culture.
Negative Points
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BTS North America experienced only 3% growth in Q4 2024, with some projects rescheduled to 2025 and client reorganizations causing delays.
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BTS Spain and Italy struggled, dragging down performance in other markets with a near 10% organic decline.
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The company's EBITDA margin decreased from 18.1% to 17% in Q4 2024.
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Demand from government entities in the Middle East leveled off in Q4 2024 after strong growth earlier in the year.
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Two significant sales kickoff events in North America were canceled, impacting Q4 2024 revenue, with expectations for their return only in Q4 2025.
Q & A Highlights
Q: Can you provide insights on the performance of BTS's other markets, particularly in Spain and Italy, and whether you expect growth in Q1? A: Jessica Skon, CEO: Towards the end of Q4, we observed a reversal in the slowdown, with growing pipelines in both Spain and Italy. While it takes time to win new work, the general sentiment is positive, indicating a turnaround.
Q: How sustainable is the strong growth in BTS Europe, and do you expect it to continue? A: Jessica Skon, CEO: The pipeline in Europe continues to grow, and while Germany remains somewhat volatile, the overall win rates are strong. We expect the positive trend to continue.
Q: Did the uncertainties related to the U.S. elections impact Q4 results in North America? A: Jessica Skon, CEO: In Q4, two major clients canceled their usual large sales kickoffs, impacting revenue. However, the market feels stronger compared to a year ago, with less delays and quicker deal flow.