Proact: Fiscal 3Q23 Financial Results

(in SEK million)	3Q22	3Q23	9 mo. 22	9 mo. 23
Revenue	1,098.6	1,065.3	3,316.8	3,487.3
*Growth*		-3%		5%
Profit after tax	43.9	50.9	127.0	107.5

Here is an interim financial report of Proact IT Group AB for the periods July-September 2023 and January-September 2023.

Good development in the services business and cost program that delivers results

July-September 2023
• Revenues decreased by 3.0% to SEK 1,065.3 million (1,098.6).
• Adjusted EBITA decreased by 7.0% and amounted to SEK 72.8 million (78.3), corresponding to an adjusted EBITA margin of 6.8 per cent (7.1).
• Profit before tax amounted to SEK 63.7 million (56.1).
• Profit after tax amounted to SEK 50.9 million (43.9).
• Profit per share amounted to SEK 1.85 (1.60).
• New contracts relating to cloud services worth SEK 118.8 million (158.1) were contracted, a decrease by 24.9%
• Recurring revenues (revenues from cloud and support services) amounted to SEK 436.7 million (369.7), corresponding to an annualized rate of SEK 1,746.8 million (1,478.6) and an increase of 18.1%.
• On August 28, Proact’s subsidiary in Lithuania was divested, which had a positive effect on the operating profit of SEK 3.1 million, which is reported under items affecting comparability, and is expected to have a marginally positive effect on the result going forward.

January-September 2023
• Revenues increased by 5.1% to SEK 3,487.3 million (3,316.8).
• Adjusted EBITA decreased by 0.8% and amounted to SEK 211.0 million (212.8), corresponding to an adjusted EBITA margin of 6.0% (6.4).
• Cost efficiency program implemented with estimated savings amounting to between SEK 45 and 50 million in the current year, which has resulted in restructuring costs during the second quarter, accounted for as items affecting comparability of SEK 19.8 million.
• Profit before tax amounted to SEK 135.5 million (158.2).
• Profit after tax amounted to SEK 107.5 million (127.0).
• Profit per share amounted to SEK 3.91 (4.62).
• New contracts relating to cloud services worth SEK 351.1 million (421.0) were contracted, a decrease by 16.6%.
• Recurring revenues (revenues from cloud and support services) amounted to SEK 1,255.6 million (1,069.3), an increase of 17.4%.