Wiit (WIIT) H1 2024 earnings summary

Executive summary

• Revenue increased 16.3% year-over-year to €74.6 million in H1 2024, with adjusted revenues up 13.4% to €72.7 million, driven by organic growth and recent acquisitions in Italy, Germany, and Switzerland.

• Adjusted EBITDA rose 9.6% to €26.7 million, with a group margin of 36.7% (like-for-like 39.8%), slightly down due to lower-margin acquisitions.

• Adjusted net profit grew 10% to €7.3 million; reported net profit up 70% due to a one-off positive impact from Econis acquisition badwill.

• Significant acquisitions included Econis AG in Switzerland and Edge & Cloud in Germany, expanding the Group's presence and customer base.

• The merger of German subsidiaries into WIIT AG was completed to enhance operational efficiency and synergies.

Financial highlights

• Revenues and operating income: €74.6 million in H1 2024 vs €64.2 million in H1 2023 (+16.3%).

• Adjusted EBIT increased 3.7% to €13.9 million, with a margin of 19.1% (like-for-like 21.4%).

• Net financial debt stood at €219.9 million as of June 30, 2024, up from €198.7 million a year earlier.

• Organic revenue growth was 5.2%, with core revenue up 7.6% year-over-year.

• Operating cash flow was €17.4 million; capex investment totaled €17.2 million.

Outlook and guidance

• Organic growth rate for the group expected in the 8–10% range for the full year, supported by a strong sales pipeline and long-term contract renewals.

• Expectation to achieve breakeven EBITDA in Switzerland for FY 2024, with positive profitability from Q4 and €2.2–2.5 million EBITDA in 2025.

• Focus on improving EBITDA margin through core revenue growth, value-added services, and cost synergies from recent mergers.

• Net debt forecast to decrease to €200 million by year-end, with reduced CapEx in H2.

• CapEx guidance for full year at €27 million, with €17.2 million spent in H1.