Netcompany - Interim report for the six months ended 30 June 2023

Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained.

Company Announcement
No. 10/2023
16 August 2023

Summary

In Q2 2023, Netcompany grew revenue to DKK 1,493.9m – equal to 14.4% growth compared to Q2 2022 and 15.7% in constant currencies.

Adjusted EBITDA was DKK 195.1m compared to DKK 188.8m in Q2 2022. Adjusted EBITDA margin was 13.1% in Q2 2023 compared to 14.5% in Q2 2022.

The average number of full time employees grew from 6,719 in Q2 2022 to 7,701 in Q2 2023.

Free cash flow was DKK -72.5m compared to DKK 7.3m in Q2 2022.

Netcompany maintains expectations for full year.

"In Q2, we grew revenue 15.7% driven by strong results in the international operation of the Group. Netcompany Norway and Netcompany Netherlands grew 58.5% and 74.8% respectively. In addition, Netcompany UK grew 28.9% and Netcompany-Intrasoft grew 25.1%.

As expected, the uncertain market situation, that impacted our Danish private operation in the previous quarter, continued to impact our private segment in Q2.
Despite uncertain times we have continued to hire outstanding talents and in Q2 we have reached 7,700 full time employees – an increase of 14.6%.

During Q2, we have also seen the first indications that our enhanced "Go-To-Market” approach will lead to new business for the Group. In addition, we continued to win new projects based on proven products in the public segment, which makes me confident that we will achieve our ambition for this year and our mid-term targets for 2026.”

André Rogaczewski,
Netcompany CEO and Co-founder

Performance highlights for Q2

• Revenue increased by 14.4% to DKK 1,493.9m in reported currencies and by 15.7% in constant currencies.
• Gross profit margin was 27% against 27.9% in Q2 2022.
• Adjusted EBITDA margin was 13.1% compared to 14.5% in Q2 2022.
• Free cash flow was DKK -72.5m.
• Cash conversion ratio was negative.
• Debt leverage to 12 months rolling adjusted EBITA was 1.7x.

Financial overview

For full details on financial performance, see enclosed Company announcement Q2 2023.

Conference call details

In connection with the publication of the results for Q2 2023, Netcompany will host a conference call on 16 August 2023 at 11.00 CEST.

The conference call will be held in English and can be followed live via the company’s website; www.netcompany.com

Dial-in details for investors and analysts
DK: +45 78 76 84 90
UK: +44 203 769 6819
US: +1 646 787 0157
Pin: 598046

Webcast Player URL: https://netcompany-as.eventcdn.net/events/interim-report-Q2-2023  

Additional information

André Rogaczewski, CEO
+45 70 13 14 40

Thomas Johansen, CFO
+45 51 19 32 24

Frederikke Linde, Head of Investor Relations
+45 60 62 60 87

Attachment

• Netcompany_CompanyAnnouncement_Q2