Financial results for Q2 and H1 2023 just released: Group revenue increased by 15%

NNIT completed the transformative divestment of its infrastructure operations to become a highly specialized IT services provider and generated growth and improved earnings entailing an upgrade of the 2023 outlook on August 26.

Please refer to https://investor.nnit.comfor the full company announcement re the financial results for Q2/H1 2022.

CEO Pär Fors comments:

“Having launched our new strategy to become a highly specialized IT services provider, after the successful divestment of our infrastructure business, we saw further positive results in Q2, supporting our choice of direction for the future. NNIT delivered strong performance and organic growth based on solid business performance, improved utilization, and adjusted costs, which led to an upgrade of our 2023 outlook on August 26.”

• Group revenue increased by 15% to DKK 424 million in Q2 and by 16% to DKK 837 million for 6M 2023.
• The operating profit before special items increased to DKK 25 million for Q2 from DKK -18 million in Q2 2022 and increased to DKK 45 million for 6M 2023 from DKK -34 million for 6M 2022. The increase is driven by improved business performance, better utilization and lower costs. As a result, the operating profit margin before special items increased to 5.9% for Q2 2023 from -4.8% in Q2 2022 and to 5.4% for 6M 2023 from -4.7% for 6M 2022.
• Special items amounted to DKK 30 million for Q2 and DKK 44 million for 6M 2023 mainly related to the change in accounting treatment of earn-outs following a decision by the Danish Business Authority. The decision has been appealed by NNIT.

Business highlights

• NNIT continued to organically grow its current business by expanding its engagement with several clients and growing through group companies such as SCALES and Excellis Health Solutions.
• To support strategy execution, focusing on the life science industry internationally and on the public sector in Denmark, NNIT introduced a new regional organizational structure aiming to increase customer proximity and enhance global coordination across regions. The Group’s financial reporting format was subsequently changed to reflect the new organizational structure, cf. company announcement no. 20/2023 released on August 30, 2023.

Outlook

• NNIT upgraded its full-year outlook for 2023 on August 26, cf. company announcement no. 19/2023. Revenue growth is expected to be around 15% (previously around 10%) with an operating profit margin before special items of around 6% (previously around 5%).
• Special items are still expected up to DKK 70 million in 2023 relating to earn out payments connected to acquisitions and restructuring costs to right-size the organization after completion of the divestment of the infrastructure operations.