Continued Growth and Strategic Investments
In a compelling announcement, Netcompany has reported steady growth, showcasing its ability to thrive in challenging market conditions. For the period ending June 30, 2025, the company achieved a revenue increase of 3.9%, equivalent to DKK 1,714.9 million in the second quarter alone. This growth is reflective of their robust business strategy and client demand.
Financial Performance Overview
Despite the revenue growth, adjusted EBITDA saw a decrease of 18% in Q2 2025, totaling DKK 220.7 million. This resulted in an adjusted EBITDA margin of 12.9%, a notable drop from the previous year’s margin of 16.3%. The company acknowledges the decreased margins while highlighting the commitment to enhancing core services.
Employee Growth and Workforce Expansion
Strengthening its workforce, Netcompany increased its average full-time employees (FTEs) by 449, reaching a total of 8,333 in Q2 2025. This expansion signifies a strategic move to support their growing service demands and enhance operational capability to meet client needs.
Cash Flow and Financial Management
Netcompany reported a free cash flow of DKK 25.6 million for Q2 2025, a decline from DKK 148.2 million reported last year. The cash conversion ratio, adjusted for tax, stood at 14.6%, which reflects the company’s focus on maintaining liquidity amidst growth investments. Additionally, Netcompany’s debt leverage was recorded at 1.3x, indicating prudent financial management while pursuing growth.
Positive Outlook and Growth Expectations
Looking forward, Netcompany maintains its full-year expectations, projecting organic revenue growth to be between 5% and 10%. The goal for the adjusted EBITDA margin is anticipated between 16% and 19%, showcasing confidence in their growth strategy and market positioning.
Focus on Digital Transformation
CEO André Rogaczewski emphasized the growing demand for digital capabilities across Europe, backed by governmental and enterprise investments in local solutions. These initiatives align with the European Union's objectives to enhance digital sovereignty using local providers, positioning Netcompany at the forefront of this digital transformation.
Innovative Developments with New Partnerships
Netcompany is also excited about its recent expansion into banking services following the integration of SDC colleagues. The company looks forward to leveraging this partnership to develop innovative offerings that cater to new and existing customers, further solidifying its place as a preferred vendor in the European market.
Conference Call and Additional Information
In light of the Q2 2025 results, Netcompany will host a conference call for investors and analysts. This session, scheduled for mid-August, will provide insights into the financial results in more detail and discuss strategies moving forward. Participants can join the call through the company’s website.
For additional inquiries, investors can reach out to Thomas Johansen, CFO, at +45 51 19 32 24 or Frederikke Linde, Head of Investor Relations, at +45 60 62 60 87. They are available to provide further insights into the company’s financial performance and future strategies.
Frequently Asked Questions
What were the key revenue figures reported by Netcompany?
Netcompany reported a revenue of DKK 1,714.9 million in Q2 2025, reflecting a 3.9% growth.
How did adjusted EBITDA change compared to last year?
The adjusted EBITDA decreased by 18% to DKK 220.7 million, marking a decline in the EBITDA margin.
What is the forecast for Netcompany's organic growth?
Netcompany anticipates organic revenue growth to be between 5% and 10% for the full year.
Who can be contacted for investor relations at Netcompany?
Thomas Johansen and Frederikke Linde are the primary contacts for investor relations inquiries.
What strategic investments is Netcompany focusing on?
The company is investing in digital capabilities and expanding its services in response to market demands and government initiatives.
