1-3/2021 Interim Report

    Solteq Group’s revenue grew clearly, and profit improved considerably relative to the comparison period. Solteq Group’s revenue was EUR 17.4 million, an increase of 10.9 percent. The Group’s operating profit was EUR 2.2 million, up by 211.6 percent from the comparison period. The Group’s operating profit margin was 12.8 percent. The company’s EBITDA increased by 86.2 percent relative to the comparison period, amounting to EUR 3.5 million. Solteq Group’s EBITDA margin was 20.1 percent.

    Solteq Group’s business operations are organized into two segments: Solteq Software (software business) and Solteq Digital (services business). The Software segment accounted for just over one-third of the Group’s revenue, and the Digital segment for just under two-thirds. The Software segment accounted for 44.3 percent of the Group’s EBITDA. The result of both segments was good. Revenue from international subsidiaries accounted for 21.6 percent of the Group’s revenue, which was slightly below the comparison period due to the COVID-19 pandemic.

    Solteq Software’s revenue increased by 43.1 percent in the first quarter. The growth was significant, and mostly organic. The business transfer agreement with Partiture Oy at the beginning of March slightly increased the revenue of Utilities business area. Investments in the company’s product development amounted to EUR 0.7 million. Reporting of recurring revenue for the Software segment began at the beginning of the financial year. Recurring revenue accounted for 29.1 percent of the segment’s revenue in the first quarter. The company estimates that the share of recurring revenue will increase to about one-third of the segment’s revenue this year. The segment’s long-term financial goal is to increase revenue by at least 20 percent annually, and to increase the share of recurring revenue to more than 50 percent over the next three years.

    Solteq Digital’s revenue remained almost at the level of the comparison period. The segment’s profitability improved significantly, and operating profit margin was 11.9. The growth of the segment was slowed by the COVID-19 pandemic, which continued to have a negative impact on travel, service, and leisure sectors. In addition, major customer projects were completed, while the launch of new customer projects was delayed.

    Solteq Group’s business outlook is good both in Finland and internationally. Driven by the Utilities business, the Solteq Software segment is expected to continue its upward growth trend. Despite the pandemic, the outlook for the Solteq Digital segment is expected to remain at the previous financial year’s level or even to grow moderately. The digital reality is affecting everyone. Keeping up with the latest developments is therefore on the current and future agendas of companies of different sizes and in various sectors.


    CEO, Olli Väätäinen