Wiit (WIIT) Q3 2024 earnings summary

Executive summary

• Adjusted revenues rose 19.7% year-over-year to €115.2M for the first nine months of 2024, driven by organic growth, new customers, and acquisitions including Edge & Cloud and Econis AG.

• Adjusted EBITDA increased 12.9% to €42.6M, with a margin of 37% (like-for-like margin 41.6%).

• Adjusted EBIT rose 7.2% to €22.5M, margin at 19.6%, with like-for-like margin at 23%.

• Adjusted net profit increased 4.6% to €12.2M, while reported net profit surged 50% to €10.2M.

• Germany now accounts for over half of group revenue, with a successful turnaround in Switzerland as Econis AG reached EBITDA break-even ahead of plan.

Financial highlights

• Core revenues totaled €99.1M (+19.7% year-over-year), with 86.5% recurring; Germany at 99%, Italy at 84%, Switzerland at 68%.

• Like-for-like EBITDA margin improved to 41.6% from 39% year-over-year.

• Net financial debt (including IFRS16) was €215.3M as of September 30, 2024; net debt excluding IFRS16 at €161M.

• Operating cash flow generation was €27.2M; CapEx totaled €22.8M, mainly for IT infrastructure and contract renewals.

Outlook and guidance

• High single-digit core revenue growth expected in both Italy and Germany for 2025, contingent on closing key contracts in Germany.

• Q4 2024 EBITDA consensus of €56M is considered achievable, with recurring revenue expected to step up in Q1 2025.

• Integration of recent acquisitions and cost synergies from mergers expected to improve margins in 2025.

• CapEx for the full year expected to align with €27M budget, decreasing to €22–23M next year.