Vitec Software Group Interim report January–September 2024
Summary of interim period, July–September 2024
- Net sales SEK 809 million (701), an increase of 15%
- Recurring revenues SEK 718 million (614), an increase of 17%
- EBITA SEK 248 million (240), an increase of 3%
- EBITA margin 31% (34)
- Operating profit SEK 171 million (158), an increase of 8%
- Operating margin 21% (22)
- Earnings per share before dilution SEK 2.85 (2.25), an increase of 27%
- Cash flow from operating activities SEK 156 million (158)
- Acquisitions of Taxiteknik and Trinergy
Summary of interim period, January–September 2024
- Net sales SEK 2,407 million (2,037), an increase of 18%
- Recurring revenues SEK 2,109 million (1,735), an increase of 22%
- EBITA SEK 732 million (652), an increase of 12%
- EBITA margin 30% (32)
- Operating profit SEK 520 million (444), an increase of 17%
- Operating margin 22% (22)
- Earnings per share before dilution SEK 8.32 (6.92), an increase of 20%
- Cash flow from operating activities SEK 939 million (727)
We tech society
Vitec continues to grow. Revenues for the third quarter amounted to SEK 809 million, an increase of 15%, of which our recurring revenues accounted for SEK 718 million, an increase of 17%. Both license and service revenues decreased compared to the same period last year. License and service revenues are usually lower during the holiday season, but this is also due to the more cautious new sales that we have experienced throughout the year. In terms of earnings, we report a slightly lower EBITA margin than last year, 31% compared to 34%. This is mostly due to the revenue mix, where the share of transaction-based revenues, which have lower gross margins, was higher and license and service revenues lower than the corresponding period last year. Profit for the period increased and earnings per share rose by 27% as the impact of lower interest rates starts to show. Cash flow from operating activities for the quarter was in line with last year and for the entire nine-month period was really strong.
During the period, Vitec carried out a directed share issue, which raised just over SEK 1,100 million. The share issue is future-oriented and strengthens our balance sheet, which together with existing credit lines and our cash flow, provides us with solid opportunities to leverage acquisition prospects we continue to identify in Europe and the Nordic region. Just a few days after the issue, we completed an acquisition of Trinergy, our first Belgian company. Trinergy is a market leader in its vertical in Belgium, with software for forecasting and energy consumption monitoring in buildings, as well as analysis and streamlining of invoicing processes, invoice automation, compliance and reporting. We also completed the previously announced acquisition of Taxiteknik. In total, we have thus acquired four companies so far this year. We keep working and assessing businesses based on our well-established acquisition criteria, enabling us to find successful vertical software companies.
We look forward to celebrating 40 years next year, but many people still don’t know who we are. We have therefore, for the first time introduced a group-wide communication concept, named We tech. The campaign shows our great breadth and the fact that in many cases we deliver not only business- critical software but also software that is critical to society. In the campaign, we address customers, partners, future employees and society at large, and at the same time create awareness and pride among those of us who work at Vitec today. We tech society.
Olle Backman, CEO and President
Vitec Software Group
