Lumi Gruppen (LUMI) H2 2024 earnings summary

Executive summary

• Leadership highlighted significant organizational changes, a positive post-COVID trajectory, and optimism for future growth and transformation, with revenue and EBIT rebounding after three years of decline; H2 2024 income rose 14% to NOK 239 million and full-year income increased 6.8% to NOK 451 million.

• EBIT increased by 124% to NOK 28.7 million in H2 2024, with a margin of 12.1%; Adjusted EBIT rose 59% to NOK 32.4 million, margin at 13.6%.

• ONH led growth with 18% revenue increase in H2, while Sonans reversed its revenue decline with 5.5% growth.

• The company is expanding educational offerings through acquisitions and new program launches, including the acquisition of Ekko, an online vocational and university college.

• Strong cash flow from operations at NOK 53 million in H2 2024, supported by EBIT growth and minimal NWC impact.

Financial highlights

• FY2024 revenue reached NOK 451 million; H2 2024 operating revenue rose 13.1% year-over-year to NOK 237.3 million.

• EBITDA for H2 was NOK 53.2 million (up 36%), with an EBITDA margin of 22.3%.

• Net profit for H2 was NOK 11.2 million, compared to a loss of NOK 10.4 million last year; EPS improved to NOK 0.19 from -0.19.

• Free cash flow conversion for FY2024 was 100%.

• Net interest-bearing debt decreased 17.7% year-over-year to NOK 190 million.

Outlook and guidance

• Revenue for academic year 2024/2025 expected between NOK 464–471 million.

• ONH expects full-year 2024/2025 income of NOK 280–285 million, implying 15–16% growth; Sonans forecasts NOK 184–186 million, a 3.5–4% increase.

• Management targets >10% annual growth for ONH, ~5% for Sonans, and >30 MNOK for ONF over four years.

• Institutional accreditation for ONH could be achieved by late 2025 or early 2026, enabling self-accredited programmes.

• ONF positioned for significant growth in vocational education.