In This Article:
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Revenue Growth: Increased by 10.4% in Q3, 2024 and 8% for the first nine months in constant currencies.
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Gross Profit Growth: Grew 24.5% in constant currencies in Q3, 2024.
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Gross Margin: Improved to 31.1% in Q3, 2024, an increase of 3.4 percentage points from the previous year.
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Adjusted EBITDA Growth: Increased by 40.1% in constant currencies in Q3, 2024.
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Adjusted EBITDA Margin: Rose by 3.9 percentage points to 19.1% in Q3, 2024.
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Employee Growth: Added 328 full-time employees, a 4.2% increase, bringing the total to 8,088.
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Free Cash Flow: DKK145.3 million in Q3, 2024, up from DKK100.4 million in Q3, 2023.
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Leverage: 1.5 times in Q3, 2024, compared to 1.6 times in Q3, 2023.
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Revenue Visibility: Improved by 7% to DKK6.278 billion.
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Share Buyback Program: Increased from at least DKK700 million to DKK800 million for 2024, with a new program of DKK250 million to be executed by January 2025.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Netcompany Group AS (FRA:60N) reported a 10.4% revenue growth in Q3 2024, supported by recovery in Denmark and growth in Norway and the Netherlands.
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Gross profit increased by 24.5% in constant currencies, with a gross margin improvement of 3.4 percentage points compared to the previous year.
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Adjusted EBITDA grew by 40.1% in constant currencies, with the margin increasing by 3.9 percentage points to 19.1%.
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The company secured several new contracts, including a case management system for the Norwegian Ministry of Foreign Affairs and a new cash benefit system in Denmark.
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Netcompany Group AS (FRA:60N) increased its share buyback program for 2024 from DKK700 million to DKK800 million and initiated a new program of DKK250 million.
Negative Points
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Revenue in the UK declined by 7.2% due to slower than anticipated ramp-up on larger engagements.
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Employee churn in Norway increased, impacting the overall employee growth rate.
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The company experienced delays in payment from the Greek government, affecting working capital.
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Free cash flow was impacted by higher work in progress due to fixed fee projects with stretched payment milestones.
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The company faces challenges in hiring and retaining talent in the UK and Norway, which could affect future project delivery.
Q & A Highlights
Q: Are you confident in attracting enough talent for your UK and Norwegian divisions, and when do you expect to start hiring again? A: (Andre Rogaczewski, CEO) We are confident in our strategic positioning, especially in the public sector, and will continue hiring as engagements grow in both countries over the next quarters.