Q4 2025 Vitec Software Group AB (publ) Earnings Call Transcript
Key Points
- Vitec Software Group AB (STU:7VS) reported a 9% growth in net sales for the full year, driven primarily by subscription-based revenues.
- The company successfully completed three acquisitions in the last four months, expanding its presence in Poland and adding new business units.
- Cash flow was strong for both the quarter and the full year, with an 85% cash conversion rate to EBIT.
- The company has a diversified sales distribution across multiple countries and verticals, reducing dependency on any single market.
- Vitec Software Group AB (STU:7VS) is actively integrating AI into its products and operations, aiming to improve efficiency and product offerings.
- The EBITDA level was flat compared to the previous year, with no significant improvement in profit margins.
- Currency headwinds negatively impacted both profit and net sales, with a 2% effect on the full year and 3% on the quarter.
- The company did not achieve its objective of growing profits faster than the top line, indicating room for efficiency improvements.
- There was a reversal of earn-outs totaling approximately SEK200 million, indicating that some acquisitions did not meet overperformance expectations.
- External costs increased by almost 20% compared to the same quarter last year, partly due to different cost structures in acquired companies.
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Thank you, and a warm welcome to everyone attending this conference call today. My name is Patrik Fransson, Head of Investor Relations. And in the room with me is our CEO, Olle Backman. As always, we will first give you a short overview and then some comments on our year-end report released earlier this morning. And again, as we've done every time before, we will open up for questions after that.
So with that, I will hand over to you, Olle.
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Thank you, Patrik, and welcome, everyone, to this presentation. As I said -- Patrik said, we will short with a brief overview of the group as such. This picture, many of you have seen before, but it keeps on evolving all the time. So now we're serving 26,500 customers. These -- all these numbers are per year-end.
So by then, we had 47 business units. But as of now, as you've seen from the press releases, we
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