Mysafety Group (SAFETY) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered a positive result of 1.2 MSEK (1.7), with ongoing efficiency programs expected to yield annual savings of 25–30 MSEK.

• Strategic focus remains on core insurance verticals, with restructuring and cost reductions beginning to show impact.

• New management structure implemented, incurring one-time costs of 2.2 MSEK but expected to save 4 MSEK annually.

• Customer base development has stabilized, with recurring revenue expected to increase in the second half.

• B2B segment (Xavi Solutionnode) continues to face weak demand, but new leadership aims to drive improvement.

Financial highlights

• Net sales for Jan–Jun 2024 were 153.9 MSEK (156.8), down 1.8% year-over-year; Q2 net sales were 78.1 MSEK (79.3).

• Operating result (excl. customer contract amortization) for Jan–Jun was -10.6 MSEK (6.3); Q2 was 0.7 MSEK (5.0).

• Period result for Jan–Jun was -18.9 MSEK (4.6); Q2 was 1.2 MSEK (1.7). EPS for Jan–Jun was -1.25 SEK (0.72); Q2 was 0.07 SEK (0.25).

• EBITDA for Q2 was 4.6 MSEK (8.9); for Jan–Jun, 2.0 MSEK (12.9).

• Cash flow from operations for Jan–Jun was -19.7 MSEK (4.5); Q2 was -5.6 MSEK (-0.4).

Outlook and guidance

• Efficiency measures and new initiatives are expected to deliver annual positive results of 25–30 MSEK.

• Cost reductions of about 10 MSEK annually will impact results from H2 2024.

• Recurring revenue is projected to rise in the remainder of the year.

• Xavi Solutionnode's results are expected to improve in the autumn with new management.