BTS Group (BTS) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw group revenue up 8% and EBITA/EBITDA up 13% year-over-year, with margin improvement from 8.4% to 9.2%.

• Strategic focus on global accounts and integration of SEAC in Thailand strengthened presence in Southeast Asia.

• Profit after tax for Q3 was MSEK 190, but excluding a reversed earn-out provision, profit after tax increased 10% to MSEK 24.

• Launch of new AI tools and bots, with client adoption doubling from Q2 to Q3.

• Wonderway acquisition product now live in all units, generating new demand for custom bots.

Financial highlights

• Q3 EBITA/EBITDA margin increased to 9.2% (from 8.4%); nine-month margin was 11.4%.

• Group revenue grew 8% year-over-year in Q3 2024.

• BTS North America grew revenue by 6%, maintaining margins at 8.9%-9%.

• BTS Europe revenue up 5%, margin improved to 8.5%-9.2%.

• BTS Other Markets net sales up 16%, margin declined from 11.6% to 10.6%.

Outlook and guidance

• 2024 EBITA/EBITDA expected to exceed 2023, with unchanged guidance.

• Margin improvement targeted at 0.5%-0.8% per year, aiming for 15-17% EBITDA margin over 3-7 years.

• Organic growth prioritized, with larger acquisitions considered for 2025.