Netum - Solid growth, profitability softness
Netum provided preliminary H1/2022 figures, with growth better than we had expected while profitability was slightly weaker due to personnel growth, increased subcontracting, sick leaves and general cost increase. Netum still expects over 30% growth in 2022, EBITA now expected to be 12-14% of revenue (prev. over 14%).
- Netum provided preliminary information on its H1/2022 result and lowered its earnings estimate.
- Netum’s revenue during H1/2022 grew 47.8% from the previous year and amounted to EUR 15.4m (Evli EUR 14.1m). EBITA was EUR 1.7m (Evli EUR 2.0m) or 11.2% of revenue.
- Netum lowered its earnings estimate for the year 2022, expecting EBITA to be approximately 12–14% of revenue (prev. over 14%). The Group’s revenue estimate for 2022 is intact, with revenue expected to grow at least 30% from the previous year.
- The company's profitability estimate is lowered due to the larger than expected investments in personnel growth made in the first half of 2022, a higher than usual volume of subcontracting, sick leaves caused by the coronavirus and the general cost increase.
- Overall, the news is in our view slightly more on the positive side despite the profitability guidance downgrade given the rapid growth in the first half of the year and as the guidance implies expectations for improved profitability during H2. We had estimated a 2022 EBITA-margin of 14.3% and the difference to the mid-point of the new guidance is thus small.
- Netum will publish its H1/2022 report on August 16th.