Karnov Group AB (LTS:0A39)

Q1 2025 Karnov Group AB (publ) Earnings Call Transcript

May 14, 2025 / 07:00AM GMT

Release Date Price: kr90.9 (+0.89%)

Transcript

Key Points

Positve

Karnov Group AB (FRA:3UA) achieved solid growth in Q1 2025, with net sales reaching SEK673 million, driven by strong online sales and customer upgrades to AI solutions.
The company reported an improved adjusted EBITA margin of 26%, an increase of more than 3 percentage points compared to the previous year, due to achieved synergies.
Strong operating cash flow in Q1 led to improved leverage, now at 2.4 times, well below the company's financial target.
The AI assistant has been widely adopted, increasing customer efficiency and leading to significant usage growth, with notable customer wins such as Deloitte's Swedish branch.
Karnov Group AB (FRA:3UA) is progressing ahead of plan with synergy initiatives in Region South, achieving annual run rate synergies of EUR9 million by the end of Q1.

Negative

Region South experienced a decline in net sales by SEK3 million compared to Q1 of the previous year, primarily due to weak offline sales in Spain.
Currency effects negatively impacted net sales by 0.4% in Q1.
The Spanish business faced challenges with a complicated merger and weak offline sales, requiring actions to address performance issues.
Despite growth in France, the Spanish market remains a bottom-line story, focusing on cost reduction and product rationalization.
Items affecting comparability amounted to SEK28 million in Q1, related to integration efforts in Region South and group-wide acceleration initiatives.

Operator

Welcome to the Karnov Group Q1 2025 report presentation. (Operator Instructions)

Now I will hand the conference over to CEO, Pontus Bodelsson; and CFO, Magnus Hansson. Please go ahead.

Pontus Bodelsson;publ;President

Karnov Group AB;Group Chief Executive Officer

()- -

Welcome, everyone, to Karnov Group's earnings conference, where we will present the outcome of the first quarter of 2025.

Please go to slide 2. I'm Pontus Bodelsson, President and CEO of the company. With me, I have our CFO, Magnus Hansson; and our Head of Investor Relations, Erik Berggren. Magnus and I will present the outcome of the quarter using a few slides, and then we'll open up for questions. With that said, let's get started with the presentation of the first quarter. Please go to slide 3.

In Q1, we achieved solid growth, strong cash flow and improved margins. Customers are adopting our AI assistant. Usage of the AI assistant is increasing steadily and our customers become significantly more efficient.

Net

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