Solteq - Growing faster than expected
Solteq’s Q2 was slightly above expectations, with revenue at EUR 18.5m (Evli EUR 17.1m) and adj. EBIT at EUR 2.5m (Evli EUR 2.3m). Guidance intact: group revenue in 2021 is expected to grow clearly and the operating profit to improve clearly.
- Net sales in Q2 were EUR 18.5m (EUR 15.1m in Q2/20), slightly above our estimates (Evli EUR 17.1m). Growth in Q2 amounted to 22.6% y/y, of which around four fifths was organic growth. 21.4% of sales came from outside of Finland.
- The operating profit and adj. operating profit in Q1 amounted to EUR 2.4m and 2.5m respectively (EUR 1.5m/1.5m in Q2/20), in line with our estimates (Evli EUR 2.3/2.3m).
- Solteq Digital: revenue in Q2 amounted to EUR 11.9m (Q2/20: EUR 10.5m) vs. EUR Evli 10.5m. The adj. EBIT was EUR 1.9m (Q2/20: EUR 1.1m) vs. Evli EUR 1.1m. The segment is expected to develop steadily during the rest of the year.
- Solteq Software: Revenue in Q2 amounted to EUR 6.6m (Q2/20: EUR 4.6m) vs. Evli EUR 6.6m. The adj. EBIT was EUR 0.6m (Q2/20: EUR 0.4m) vs. Evli EUR 1.2m. Growth was 44.6%. Recurring revenue 28.8% of the segment’s revenue. The Partiture Oy acquisition had a slight positive impact on growth. The business outlook for the segment is expected to remain positive
- Guidance for 2021 intact: group revenue is expected to grow clearly and operating profit to improve clearly.