Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- B3 Consulting Group AB (LTS:0RL1, Financial) reported a positive EBITDA growth of 14% in Q3 2024, which is notable in the IT consulting sector.
- The company has successfully expanded its operations in Poland, with all employees based there and projects running in seven different markets.
- Over 80% of B3 Consulting Group AB (LTS:0RL1)'s customers are acquired through cold-calling campaigns, including large international enterprises.
- The company has developed a structured model to improve awareness, engagement, and efficiency among employees, contributing to its growth.
- B3 Consulting Group AB (LTS:0RL1) aims to differentiate itself by enhancing the quality of IT consulting services in Poland through its CARE3 model.
Negative Points
- The competitive landscape in Poland is intense, with numerous foreign and local companies competing in the IT consulting space.
- Despite the positive growth, the company acknowledges challenges in the market and the need to continuously adapt to changing conditions.
- B3 Consulting Group AB (LTS:0RL1) is a small player in the Polish IT sector, with less than 200 employees out of over 700,000 IT specialists in the country.
- There is no single report defining the market share of IT consulting firms in Poland, making it difficult for the company to gauge its exact market position.
- The company is not yet satisfied with its utilization rate, indicating room for improvement in maximizing its existing resources.
Q & A Highlights
Q: Is the Polish market still strong?
A: Rafal Dabkowski, CEO, stated that the Polish market remains strong with continued GDP growth and significant foreign investments. The IT sector is becoming increasingly important, presenting numerous opportunities despite challenges.
Q: What is the current competitive landscape, and who are your main competitors?
A: Rafal Dabkowski explained that the competitive landscape includes both foreign and Polish companies of varying sizes. Key competitors include SII, 7N, Magine, and Millennium Bright, among others.
Q: What is your current market share, and is there potential to increase it?
A: Rafal Dabkowski mentioned that while there is no specific report on market share, B3 Consulting is a small part of the 700,000 IT specialists in Poland, indicating significant growth potential.
Q: What is the secret recipe behind your success?
A: Rafal Dabkowski attributed success to a combination of having the right people, disciplined actions, adaptability, and a proactive care philosophy that anticipates client needs.
Q: Do you see organic capacity increases going forward?
A: Martin Stenstrom, CEO, confirmed that there is still potential for organic growth, particularly in improving utilization rates, despite the focus on acquisitions like Webstep and Poland Consulate.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
