Digitalist Group Plc’s Business Review, 1 January –
SUMMARY
July–September 2023 (comparable figures for 2022 in parentheses):
- Turnover: EUR 3.6 million (EUR 3.9 million), decrease: -8.0%.
- EBITDA:
EUR 0 .4 million* (EUR -0.6 million), 12.1% of turnover (-15.7%). - EBIT: EUR 0.2 million* (EUR -1.1 million), 6.6% of turnover (-29.1%).
- Net income: EUR -0.4 million* (EUR -1.9 million), -11.9% of turnover (-47.5%).
- Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00).
*) EBIT, EBITDA and net income of the period were impacted by a booked gain of
January–September 2023 (comparable figures for 2022 in parentheses):
- Turnover: EUR 12.5 million (EUR 14.3 million), decrease: -12.6%.
- EBITDA: EUR -0.5 million* (EUR -2.0 million), -3.9% of turnover (-14.1%).
- EBIT: EUR -1.1 million* (EUR -3.4 million), -8.8% of turnover (-24.0%).
- Net income: EUR -2.5 million* (EUR -5.0 million), -19.8% of turnover (-35.0%).
- Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00).
- Number of employees at the end of the review period: 138 (159), decrease of -13.2%.
*) EBIT, EBITDA and net income of the period were impacted by a booked gain of
CEO’s review
The third quarter started with major events, as we sold our fully-owned subsidiary
Our turnover for the first nine months of 2023 experienced a decline compared to the same period last year, registering at 12.5 MEUR as opposed to 14.3 MEUR for the same period in 2022. In spite of the positive revenue impact of acquiring
The EBIT, EBITDA, and net income for the period felt the positive impact of a booked gain of
Our primary markets,
To forge ahead towards profitability, we've instituted several strategic measures this year, including:
- The acquisition of
Open Communications International to strengthen our Brand strategy and communications offerings inSweden and at the same time open up for synergies with Grow. - Further savings programs have been implemented in
Grow AB and inDigitalist Finland Oy to adapt the cost to the current market outlook. - Selling FutureLab & Partners AB, which supports our equity, increased the financial flexibility and the focus on our core business.
- Downsizing our business operations in
Canada , focusing increasingly on our core businesses in the European markets, especially inSweden andFinland .
We are constantly looking for new ways of running our business more effectively and are implementing even more actions during the fourth quarter.
This said our most important task is to improve our topline. LeanLab, our SaaS business, is growing with new clients and recurring revenue. Adding to our open tech offering, we have also launched a new SaaS offering, Open Cloud, where we offer open technology products as a service. This opens up a new way for companies to leverage the strengths of open technology.
We are continuing to serve both the private and public sector and are proud to have closed deals with clients like
While our profitability indicators reflect an upward momentum, we acknowledge that the pace of transformation needs acceleration. Every individual within our organisation is relentlessly committed to driving our business forward and enhancing value.
/CEO,
FUTURE PROSPECTS
In 2023, turnover is expected to decrease and EBITDA is expected to improve in comparison with 2022.
EVENTS DURING THE THIRD QUARTER
FutureLab was spun off from
Board members
As part of the Transaction described the Company issued new shares as payment for the purchase price. The Board resolved to issue a maximum of 11.007.709 new shares of the Company and directed them to
The Shares issued in the Directed Share Issue correspond to altogether approximately 1.6 percent of all Company shares and votes after the Directed Share Issue.
As part of the efforts to improve Digitalist Group’s profitability, adjust the cost structure, and prepare for the changed market situation, the Company announced having downsized business operations in
Change in turnover guidance
The new guidance is:
In 2023, turnover is expected to decrease and EBITDA is expected to improve in comparison with 2022.
The previous guidance of the company was:
In 2023, turnover and EBITDA are expected to improve in comparison with 2022.
Digitalist Group Plc’s new shares registered in the trade register
The new shares produced the shareholder rights as of the registration date to
The stock exchange releases are on the company’s website at https://digitalist.global/investors/releases
Despite the implemented efficiency measures and financial arrangements, the cash flow for the next 12 months is likely to be negative, according to the forecast. However, at the time of publishing the business reviews, the company estimates that its working capital is sufficient for the needs of the next 12 months, taking into account the financing support provided by the main owner if needed.
Board of Directors
Additional information:
CEO
Chairman of the Board
Distribution:
Major media
https://digitalist.global
Attachment
- Digitalist Group Plc’s Business Review, 1 January –
30 September 2023
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