13.08.2019

    Solteq Plc Half-year Report 1 January – 30 June 2019

    Solteq Plc Stock Exchange Bulletin 13.8.2019 at 8.00 am

    International subsidiaries grew

    April – June

    • Revenue totaled 14,660 thousand euros (14,232).
    • EBITDA was 1,572 thousand euros (629).
    • Operating profit was 571 thousand euros (24).
    • The implementation of IFRS 16 -standard improved EBITDA by 458 thousand euros and the operating profit by 45 thousand euros during the second quarter.*
    • Earnings per share was 0.01 euros (-0.02).

    January– June

    • Revenue totaled 29,590 thousand euros (29,103).
    • EBITDA was 4,027 thousand euros (2,553).
    • Operating profit was 2,101 thousand euros (1,329).
    • The implementation of IFRS 16 -standard improved EBITDA by 917 thousand euros and the operating profit by 91 thousand euros during the review period.*
    • Earnings per share was 0.05 euros (0.02).
    • Solteq Group’s equity ratio was 30.3 percent (32.4).
    • The Group’s equity ratio excluding the impact from adopting the IFRS 16 -standard would have been 32.7 percent during the review period.*
    • Net cash flow from operating activities was 1,939 thousand euros (2,507).
    • The revenue was 1.7 percent higher than in the comparison period. Continuous services accounted for approximately one third of the revenue.
    • The company invested strongly in future growth by focusing on the development of our own cloud-based software products and services. During the review period the product development investments amounted to EUR 2.1 million (0.9).

    *Solteq Group implemented the IFRS 16 Leases -standard effective from January 1, 2019. The new standard was implemented using the modified retrospective approach, in which the comparative figures for prior financial periods were not restated.

    Key figures

      4-6/2019 4-6/2018 Change-% 1-6/2019 1-6/2018 Change-% 1-12/2018 Rolling 12mos
    Revenue, TEUR 14,660 14,232 3.0 29,590 29,103  1.7 56,867 57,354
    EBITDA, TEUR 1,572 629 149.9 4,027 2,553 57.7 4,766 6,240
    Adjusted EBITDA, TEUR 1,634 758 115.6 4,099 2,668 53.7 5,417 6,848
    Operating profit, TEUR 571 24 2,293.7 2,101 1,329 58.1 2,466 3,238
    Adjusted operating profit, TEUR 633 153 314.5 2,173 1,444 50.5 3,117 3,846
    Profit for the financial period, TEUR 131 -305 142.9 941 353 166.9 356 944
    Earnings per share, EUR 0.01 -0.02 140.6 0.05 0.02 161.1 0.02 0.05
    Operating profit, % 3.9 0.2   7.1 4.6   4.3 5.6
    Adjusted operating profit, % 4.3 1.1   7.3 5.0   5.5 6.7
    Equity ratio, %       30.3 32.4   32.4 30.3

     

    CEO Olli Väätäinen: International subsidiaries grew

    The Solteq Group’s revenue was 14.7 million euros in the second quarter of 2019, an increase of 3.0%. Approximately one fifth of revenue originated from outside Finland. The revenue of the international subsidiaries grew significantly. Continuous services accounted for approximately one third of the revenue. The company’s own software products and the related services accounted for approximately one-third and digital services approximately two-thirds of the revenue.

    The EBITDA for the second quarter was 1.6 million euros and operating profit 0.6 million euros. The operating profit increased by 0.5 million euros on a comparable basis, considering the impact of the implementation of IFRS 16 -standard.

    Solteq continued to invest significantly in the development of its own cloud-based software products and services. Customer feedback related to the developed software products has been positive. The product development investment was 1.1 million euros in the second quarter. We invested 0.6 million euros into product development in the second quarter last year. The product development investments are estimated to amount to 3.5 million euros by the end of the year.

    The Group’s order intake continued to develop positively during the second quarter, and it was clearly better than in the second quarter of last year. The business outlook has remained unchanged, and the company’s profitability is expected to develop positively.

    Profit guidance 2019

    Solteq Group’s operating profit is expected to grow clearly compared to the financial year 2018.

     

    Attachments

    Solteq Plc Half-year Report 1 Jan – 30 Jun 2019

     

    Further information

    Olli Väätäinen, CEO
    tel +358 50 5578 111
    e-mail olli.vaatainen@solteq.com

    Martti Nurminen, CFO
    tel. +358 40 751 7194
    e-mail martti.nurminen@solteq.com

     

    DISTRIBUTION

    NASDAQ OMX Helsinki
    Key media
    www.solteq.com

     

    Solteq in brief

    Solteq is a Nordic IT service provider and software house that specializes in digital business solutions and vertical software markets.

    2019