Q2 2024 Arribatec Group ASA Earnings Call Transcript
Key Points
- Arribatec Group ASA (OSL:ARR) achieved record high revenue of NOK150.1 million in the second quarter.
- The company signed a significant NOK73 million agreement with EEAS for support improvement and cloud migration, expected to positively impact future revenue and EBITDA.
- Recurring revenue increased by 19% compared to the same quarter last year, now accounting for 43% of total revenue.
- The cloud segment experienced a record quarter with a 12% increase in revenue year-over-year.
- Arribatec Group ASA expanded its global presence, now operating 17 offices in 11 countries, serving 1,700 clients.
- Adjusted EBITDA decreased to NOK3.4 million from NOK8.4 million a year ago, with clean EBITDA just above breakeven.
- Cash reserves decreased to NOK30 million from NOK39 million due to a large VAT payment.
- Revenue in Continental Europe and the UK decreased compared to the previous year.
- The EA-BPM segment experienced a 5% revenue decline and had to temporarily lay off staff due to project losses.
- The marine segment saw a 23% revenue decline due to reduced new ship deliveries.
Good morning, everyone, and welcome to our second quarter presentation. I will take you through the financial numbers, what has happened on the market side, and talk a little bit about the operations. So let's dive in here.
So second-quarter revenue is a record high revenue for Arribatec, came in at NOK150.1 million. Adjusted EBITDA came in at NOK3.4 million, where there are around NOK3 million in one-offs. That reduces the EBITDA to just above breakeven level.
Business services had, outside of Norway, a somewhat lower activity compared to same quarter last year. And EA & BPM likewise lost out on a couple of larger projects that we had bid for the early part of Q1 -- sorry, Q2. And that also impacted our EBITDA and our margins. However, Flytoget had picked up some of the revenue and -- or the revenue gap and -- but still at somewhat lower margins than we would have had on the business services and the EA-BPM projects.
Finally, from a financial perspective, cash is at NOK30 million at the end of the quarter. And
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