Digitalist Group Plc Stock Exchange Release October 25, 2024 9:00
Digitalist Group Plc Business Review, January 1 to September 30, 2024
summary
July-September 2024 (comparative figures for 2023 in parentheses):
Sales: 3.6 million euros (3.6 million euros), decrease: -0.8%. EBITDA: -200,000 euros (400,000 euros*), -5.0% (12.1%) of sales. EBIT: -0.3 million euros (0.2 million euros*), -8.7% (6.6%) of sales. Net profit: -1.5 million euros (-500,000 euros*), -40.8% of sales (-13.2%). Earnings per share: -0.00 euro (-0.00 euro). Earnings per share (diluted): -0.00 euro ( -0.00 euro).
*) EBIT, EBITDA and net income for the comparative period were affected by a recorded gain of EUR 600,000 from the FutureLab share transaction.
January to September 2024 (comparative figures for 2023 in parentheses):
Sales: 11.5 million euros (12.5 million euros), decrease rate: -8.4%. EBITDA: -1.3 million euros (-0.5 million euros*), -11.5% (-3.9%) of sales. EBIT: -1.7 million euros (-1.1 million euros*), -14.4% (-8.8%) of sales. Net profit: -4 million euros (-2.5 million euros*), -35.0% (-19.7%) of sales. Earnings per share: EUR -0.01 (EUR -0.00). Earnings per share (diluted): EUR -0.00 (EUR -0.00). Number of employees at the end of the review period: 126 (138), -9% decrease.
*) EBIT, EBITDA and net income for the period were affected by a recorded gain of €600,000 from the FutureLab share transaction.
CEO review
The third quarter of 2024 was a step towards profitable business for Digitalist Group. Although there were no significant events during the quarter, market conditions in Sweden are gradually improving. However, the weakness in the Finnish economy continues to impact our operations in the region.
Our revenues for the quarter were unchanged from the same period last year, totaling 3.6 million euros. EBITDA for the third quarter of 2024 was negative by EUR 2 million, compared to EUR 400,000 in the same period last year. This includes a gain of €600,000 from the FutureLab stock trade. This highlights the need for continued efforts in operational efficiency and cost control.
A key highlight of the quarter was the release of our first AI product, Digitalist Private AI Hub, in September. The platform allows businesses to leverage the power of generative AI without compromising data security and GDPR compliance. With this innovative solution, we believe we are well positioned to meet the growing demand for secure AI applications in the public sector as well as within enterprises. This new service has already brought us clients such as Sandå and Pinmeto. Other new customers acquired in the third quarter were DNA, City of Tampere and Pricer.
As for the future, I am cautiously optimistic. Improving market conditions in Sweden are the foundation for growth and we are fully committed to addressing Finland’s challenges through continued engagement and continued focus on efficiency.
We would like to express our sincere gratitude to all of our employees for their dedication and hard work. Together, we are moving towards a stronger future for Digitalist Group.
/CEO Magnus Lejonborg
Future prospects
In 2024, sales and EBITDA are expected to decrease compared to 2023.
Events after the third quarter
Digitalist Group Plc lowers previous forward-looking guidance 17.10.2024
Digitalist Group Plc (the “Company”) is reducing its previous forward-looking guidance. The new guidance includes:
In 2024, sales and EBITDA are expected to decrease compared to 2023.
The company’s previous guidance was:
In 2024, sales are expected to maintain current levels and EBITDA to improve compared to 2023.
The third quarter showed an improvement compared to the first quarter of this year, and we are cautiously optimistic about the fourth quarter, although the EBITDA reported last year (including other operating income of EUR 1 million) I don’t expect it to reach . In terms of operations, excluding the impact of other operating income, we expect this fiscal year to continue to perform better than last year.
Stock exchange releases can be found on the company’s website at https://digitalist.global/investors/releases.
Forecasts indicate that despite efficiency measures and financial arrangements in place, cash flows are likely to be negative over the next 12 months. However, at the time of publication of the Business Review, we estimate that the Company’s working capital is sufficient to meet its needs over the next 12 months, taking into account the financing support provided by the Main Owner as required.
Digitalism Group OYJ
board of directors
Additional Information:
Digitalist Group Plc
CEO, Magnus Leijonborg, Tel: +46 76 315 8422, magnus.leijonborg@digitalistgroup.com
Chairman of the Board Esa Matikainen, Tel: +358 40 506 0080, esa.matikainen@digitalistgroup.com
distribution:
Nasdaq Helsinki K.K.
major media
https://digitalist.global
ENG Digitalist Group Business Review Q3 2024
