Spir Group ASA increased revenues by 9 percent in the third quarter of 2023 compared to the same quarter last year to NOK 264 million, primarily driven by a strong quarter for the company’s mission critical software for public sector in the Sikri AS segment.
Adjusted EBITDA was NOK 52 million in the third quarter 2023, representing a 20 percent adjusted EBITDA margin. Reported EBITDA ended at NOK 48 million, implying an EBITDA margin of 18.3%, up from 16.5% in the third quarter of 2022. The margin improvement is mainly due to growth in Sikri AS, and an improved revenue mix for real estate data provider Ambita, in addition to overall cost efficiency in the Group.
“In the third quarter, Spir Group performed very well with solid growth across most of the business and overall profit improvement. We have market-leading positions in Norway and Sweden within mission critical public sector software and real estate data & geo information. These are two attractive areas with significant ongoing digitalization efforts, implying that we have a great potential for consistent growth and margin improvement going forward,” said Per Haakon Lomsdalen, who started in the position as CEO of Spir Group in Q3 2023.
The main contributor to the overall growth was Sikri AS, which delivers mission critical software for the public sector. Sikri AS grew revenues by 32 percent. This growth was driven by the steady, high win rate in public tenders, increasing ARR, a higher level of consulting revenues, and revenues related to the Norwegian municipal elections in September.
“Sikri AS, operating within mission critical public sector software in Norway, performed particularly well with significant customer wins and good cost control resulting in 30 percent reported EBITDA margin. A challenging real estate market hampers the growth rates of Ambita and Metria, but with this backdrop, both companies perform satisfactorily with flat to slightly growing revenues.
In Sweden, Metria delivered a flat quarter in terms of revenue compared to the same period last year despite a continued weak real estate market in Sweden. Spir Group continues the transformation of Metria after the divestment of the Planning and Surveying business area in Sweden to Sweco in Q2 2023. Metria’s primary focus going forward is to improve margins.
“Most of our business is now based on Software-as-a-Service model, with 83 percent of our revenue regarded as recurring or recurring-like. ARR increased by 7 percent year-over-year to NOK 385 million at quarter end, and we seek to establish a top-notch sales culture and organization to continue to grow going forward,” said Lomsdalen.
Financial highlights for Q3 2023 (Y/Y change)
- Revenue MNOK 264, up 9 percent
- Adjusted EBITDA MNOK 52 up from MNOK 48
- Reported EBITDA NOK 48, up from NOK 40
- Annual recurring revenue (ARR) up 7 percent to MNOK 385
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Investors, analysts, and media are welcome to follow a webcast presentation of the results Thursday November 9th, at 08:00. The presentation will be held by CEO Per Haakon Lomsdalen and CFO Camilla Aardal.
The presentation will be followed by a Q&A session, and viewers are encouraged to submit written questions during and after the presentation through the webcast player.
For further queries, please contact:
Per Haakon Lomsdalen
Chief Executive Officer
Tel: +47 90 27 19 18
Email: Per.Lomsdalen@sikri.no
Camilla Aardal
Chief Financial Officer
Tel: +47 97 10 51 55
Email: Camilla.aardal@sikri.no
