Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
Netcompany
Q3 2024
Company Announcement
Nine months ended 30 September 2024
Continued growth and improved margin
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
2
38
Summary
Revenue increased by 10.4% (constant 10.4%)
DKK 1,613.9m
Q
DKK 1,461.7m
Q
Conference call details
In connection with the publication of the results for Q3 2024, Netcompany will host a
conference call on 31 October at 11.00 CET.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-9-months-of-2024
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 4,862.3m
YTD
DKK 4,495.8m
YTD
DKK 306.3m
Q
DKK 219.9m
Q
DKK 822.5m
YTD
DKK 657.1m
YTD
Q
15.0%
Q
YTD
YTD
19.0%
Adj. EBITDA increased 39.3% (constant 40.1%)
Adj. EBITDA margin was 19% (constant 19.1%)
14.6%
16.9%
DKK 145.3m
Q
DKK 100.4m
Q
DKK 288.7m
YTD
DKK 169.5m
YTD
Q
93.0%
Q
YTD
YTD
89.5%
53.0%
69.0%
8,088 FTEs
Q
7,760 FTEs
Q
7,927 FTEs
YTD
7,657 FTEs
YTD
Average FTEs increased by 328
Q
1.6x
Q
1.5x
Debt leverage slightly improved
Cash conversion ratio was 89.5%
Free cash flow increased DKK 44.9m
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
3
38
“In Q3, we grew revenue by 10.4%, once again supported by ongoing recovery in the Danish part of the Group
combined with strong growth in Netcompany-Intrasoft, Norway and in the Netherlands.
Margins continued to improve during Q3 – both compared to the same quarter last year and from the levels
realised in Q2 this year – as anticipated.
The average number of FTEs increased by 4.2% compared to the same time last year, and at the end of Q3 we
employed more than 8,200 highly talented professionals throughout the Group.
It truly pleases me to see that so many talented IT professionals choose to work with Netcompany, and together
with our customers, to develop, implement and operate critical IT infrastructure throughout Europe.
We maintain our financial guidance for the year and initiate a new share buyback programme of DKK 250m
running to the end of January 2025 bringing the total share buyback programme initiated for the year to DKK
800m. We also remain committed to our midterm targets for 2026.”
André Rogaczewski
NETCOMPANYCEOANDCOFOUNDER
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
4
38
Performance overview Q3
Q3 2024 Q3 2024 % change
% change
DKK million
(reported) (constant)* Q3 2023 (reported) (constant)*
Revenue 1,613.9 1,613.0 1,461.7 10.4% 10.4%
Cost of services -1,114.5 -1,112.2 -1,059.3 5.2% 5.0%
Gross profit 499.5 500.9 402.4 24.1% 24.5%
Gross profit margin 30.9% 31.1% 27.5% 3.4pp 3.5pp
Sales and marketing costs -12.9 -12.9 -13.0 -0.7% -0.9%
Administrative costs -227.4 -227.1 -215.1 5.7% 5.6%
Adjusted EBITA 259.2 260.8 174.3 48.6% 49.6%
Adjusted EBITA margin 16.1% 16.2% 11.9% 4.1pp 4.2pp
Other operating income / expense -0.4 -0.4 -0.0 42552.3% 42524.7%
EBITA 258.7 260.4 174.3 48.4% 49.3%
EBITA margin 16.0% 16.1% 11.9% 4.1pp 4.2pp
Amortisation -29.8 -29.8 -35.8 -16.8% -16.8%
Operating profit (EBIT) 228.9 230.6 138.5 65.2% 66.5%
Operating profit margin 14.2% 14.3% 9.5% 4.7pp 4.8pp
Net financials -36.2 -36.2 -35.6 1.7% 1.7%
Income / loss, joint venture / associates -3.8 -3.8 -2.3 61.4% 61.4%
Profit / loss before tax 188.9 190.6 100.6 87. 8 % 89.5%
Tax -49.9 -49.8 -20.7 141.5% 141.3%
Effective tax rate 26.4% 26.1% 20.5% 5.9pp 5.6pp
Net profit / loss 139.1 140.8 80.0 73.9% 76.1%
Additional KPIs
Adjusted EBITDA 306.3 308.0 219.9 39.3% 40.1%
Adjusted EBITDA margin 19.0% 19.1% 15.0% 3.9pp 4.0pp
Free cash flow 145.3 N/A 100.4 44.8% N/A
Cash conversion rate 89.5% N/A 93.0% -3.5pp N/A
*Constant currencies measured using average exchange rates for Q3 2023
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
5
38
Profit before tax increased 87.8% to DKK
188.9m mainly driven by the increase in
EBIT.
Income taxes in Q3 2024 were DKK 49.9m
compared to DKK 20.7m in the same quar-
ter last year. The effective tax rate was
26.4% in the quarter, compared to 20.5% in
Q3 2023. The increase in effective tax rate
was caused by an increase in non-deducti-
ble items compared to Q3 2023.
Net profit amounted to DKK 139.1m in Q3
2024, compared to DKK 80m in the same
quarter last year.
Free cash flow increased by DKK 44.9m
from DKK 100.4m in Q3 2023 to DKK
145.3m in Q3 2024, driven by improved
EBITDA.
pared to DKK 215.1m in the same quarter
last year. Sequentially administrative costs
decreased compared to Q2 2024.
Adjusted EBITDA increased 39.3% to DKK
306.3m in Q3 2024 compared to DKK
219.9m in Q3 2023. The adjusted EBITDA
margin was 19% (constant 19.1%), an im-
provement of 3.9 percentage points com-
pared to the same quarter last year. The
increase was driven by improvement in all
segments apart from the UK.
Amortisation was DKK 29.8m in Q3 2024
and DKK 6m lower than the same period
last year.
Operating profit (EBIT) amounted to DKK
228.9m in Q3 2024 compared to DKK
138.5m in Q3 2023 equal to an increase of
65.2%. EBIT margin was 14.2%, compared
to 9.5% in the same quarter last year.
Net financials were negative DKK 36.2m in
Q3 2024, in line with Q3 2023. Loss from
joint venture and associates was DKK 3.8m
in Q3 2024, compared to DKK 2.3m in Q3
last year.
PERFORMANCEOVERVIEWQ3
CONTINUED
Reported revenue grew 10.4% (constant
10.4%) compared to Q3 2023 and amount-
ed to DKK 1,613.9m in Q3 2024. Revenue
from public and private clients increased by
11.8% and 7.4%, respectively, compared to
the same period last year. The strong per-
formance was driven by continued recov-
ery in the Danish part of the Group as well
as strong growth in Netcompany-Intrasoft,
Norway and the Netherlands.
Client facing FTEs grew 4.2% and average
FTEs in Q3 2024 amounted to 8,088.
Gross profit margin increased by 3.4 per-
centage points to 30.9% in Q3 2024, com-
pared to 27.5% in the same period last year,
driven by increased margin in Denmark,
Netcompany-Intrasoft, Norway and the
Netherlands. Sequentially, gross profit mar-
gin grew 1.9 percentage points from Q2 to
Q3 confirming the continued improvement
in utilisation in Denmark, Netcompany-In-
trasoft, Norway and the Netherlands.
Sales and marketing costs were DKK 12.9m,
in line with the same period last year. Ad-
ministrative costs were DKK 227.4m, com-
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
6
38
Business Segments Q3
DKK million
Q3 2024
Constant (2023 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,613.0 759.1 571.0 149.3 84.7 48.9
Gross profit 506.5 319.3 117.8 30.9 20.8 17.7
Gross profit margin 31.4% 42.1% 20.6% 20.7% 24.5% 36.1%
Local admin costs -184.7 -100.5 -51.4 -15.7 -11.0 -6.1
Adjusted EBITDA before allocated cost from HQ 321.8 218.8 66.5 15.2 9.8 11.6
Adjusted EBITDA margin before allocated cost from HQ 20.0% 28.8% 11.6% 10.2% 11.5% 23.6%
Allocated costs from HQ -13.8 -9.7 0.0 -2.2 -1.2 -0.7
Depreciation -47.2 -23.9 -18.6 -1.0 -2.1 -1.6
Amortisation -29.8 -11.3 -14.9 -1.9 -1.0 -0.6
Other operating income / expense -0.4 0.0 -0.4 0.0 0.0 0.0
EBIT 230.6 174.0 32.5 10.1 5.4 8.6
Client facing FTEs 7,579 2,863 3,612 558 358 188
DKK million
Q3 2023
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,461.7 677.2 518.1 160.9 67.8 37.7
Gross profit 407.1 272.5 88.0 35.3 1.7 9.6
Gross profit margin 27.8 % 40.2% 17.0% 21.9% 2.6% 25.5%
Local admin costs -175.0 -92.9 -44.6 -17.9 -13.0 -6.6
Adjusted EBITDA before allocated cost from HQ 232.0 179.6 43.4 17.4 -11.2 3.0
Adjusted EBITDA margin before allocated cost from HQ 15.9% 26.5% 8.4% 10.8% -16.6%
7.9%
Allocated costs from HQ -12.1 -8.3 0.0 -2.1 -1.0 -0.6
Depreciation -45.6 -23.2 -16.3 -2.7 -1.9 -1.5
Amortisation -35.8 -17.1 -11.8 -4.0 -1.9 -1.1
Other operating income / expense -0.0 0.0 -0.0 0.0 0.0 0.0
EBIT 138.5 131.0 15.3 8.6 -16.1 -0.3
Client facing FTEs 7,270 2,838 3,262 640 367 164
Revenue, %
.%
.%
.%
Q3 2024
.%
.%
Revenue, %
.%
.%
.%
Q3 2023
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
7
38
Netcompany Denmark
Revenue in Denmark increased 12.1% driven
by an increase of 13.1% in the public seg-
ment and 10.4% in the private segment. The
improvement in both segments was driven
by increased utilisation.
Gross profit increased 17.2% to DKK 319.3m
in Q3 2024 against DKK 272.5m in Q3 2023.
This led to a gross profit margin of 42.1% in
the quarter compared to 40.2% in the same
quarter last year. Sequentially gross profit
margin increased 3.4 percentage points
from Q2 2024 to Q3 2024, confirming the
continued performance improvement in the
Danish business unit.
Adjusted EBITDA margin was 28.8% in Q3
2024 compared to 26.5% in Q3 2023, driv-
en by increased utilisation.
Client facing FTEs increased 0.9% com-
pared to Q3 2023.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft in-
creased by 10.2% driven by continued
growth in the public and EU area that grew
13.9% compared to the same quarter last
year. In the private segment, revenue was in
line with last year.
Gross profit margin increased 3.7 percent-
age points to 20.6% compared to 17% in Q3
2023, as a result of improved utilisation.
Adjusted EBITDA increased 53.1% to DKK
66.5m in Q3 2024, yielding an EBITDA mar-
gin of 11.6% compared to 8.4% in the same
quarter last year. The increase was solely
driven by improved performance, as Net-
company-Intrasoft did not recognise any
licence revenue in Q3 2024.
Client facing FTEs grew 10.7% in Q3 2024.
Netcompany UK
Netcompany UK realised revenue of DKK
149.3m in Q3 2024, compared to DKK
160.9m in Q3 2023. The decline in revenue
was a result of the continued slower than
anticipated ramp up on a large strategic
project. Gross profit margin was 20.7%,
compared to 21.9% in the same quarter last
year.
Adjusted EBITDA margin was 10.2% com-
pared to 10.8% in the same quarter last
year. During the quarter, approximately DKK
7m was spent on severance payments re-
lated to rightsizing of the pyramid structure
in Netcompany UK.
Client facing FTEs decreased by 12.8% in
Q3 2024.
Netcompany Norway
Revenue in Netcompany Norway increased
25% to DKK 84.7m in Q3 2024, driven by
an increase of 37.9% in the public segment
and 8.4% in the private segment. The in-
crease in public segment revenue was
driven by an acceleration in ramp up on the
Avinor contract and increased spending
with existing customers.
Gross profit margin increased by 22 per-
centage points to 24.5% in Q3 2024, driven
by better project execution.
Adjusted EBITDA margin was 11.5% in Q3
2024 compared to negative 16.6% in Q3
2023, driven by increased utilisation and
better project execution.
Client facing FTEs decreased 2.4% in Q3
2024.
Netcompany Netherlands
Netcompany Netherlands grew revenue
29.9% in Q3 2024 compared to the same
quarter last year. Growth was solely gener-
ated in the public segment.
Gross profit margin was 36.1% in Q3 2024
compared to 25.5% in the same quarter
last year, as a result of continued improved
utilisation.
Adjusted EBITDA margin continued to im-
prove and was 23.6% in the quarter com-
pared to 7.9% in Q3 2023.
Client facing FTEs increased 14.7% com-
pared to the same quarter last year.
BUSINESSSEGMENTSQ3
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
8
38
Performance overview 9 months
YTD 2024 YTD 2024 % change % change
DKK million
(reported) (constant)* YTD 2023 (reported) (constant)* Total 2023
Revenue 4,862.3 4,853.9 4,495.8 8.2% 8.0% 6,078.4
Cost of services -3,444.7 -3,431.8 -3,250.5 6.0% 5.6% -4,375.5
Gross profit 1,417.7 1,422.1 1,245.3 13.8% 14.2% 1,703.0
Gross profit margin 29.2% 29.3% 27.7 % 1.5pp 1.6pp 28.0%
Sales and marketing costs -36.9 -36.7 -38.7 -4.6% -4.9% -54.7
Administrative costs -700.3 -698.4 -690.7 1.4% 1.1% -935.5
Adjusted EBITA 680.4 687.0 516.0 31.9% 33.1% 712.7
Adjusted EBITA margin 14.0% 14.2% 11.5% 2.5pp 2.7pp 11.7%
Special items -0.7 -0.7 0.0 N/A N/A -0.5
Other operating income / expense -0.3 -0.3 0.6 -151.0% -151.0% -0.0
EBITA 679.4 685.9 516.6 31.5% 32.8% 712.2
EBITA margin 14.0% 14.1% 11.5% 2.5pp 2.6pp 11.7%
Amortisation -87.4 -87.4 -104.5 -16.3% -16.4% -134.2
Operating profit (EBIT) 591.9 598.5 412.1 43.6% 45.2% 578.0
Operating profit margin 12.2% 12.3% 9.2% 3.0pp 3.2pp 9.5%
Net financials -104.5 -104.4 -99.9 4.7% 4.6% -138.0
Income / loss, joint venture / associates -12.9 -12.9 -6.8 89.7% 89.7% -7.7
Profit / loss before tax 474.5 481.2 305.4 55.4% 57.6 % 432.3
Tax -124.1 -123.9 -67.0 85.4% 85.0% -128.2
Effective tax rate 26.2% 25.7% 21.9% 4.2pp 3.8pp 29.7%
Net profit / loss 350.4 357.3 238.5 46.9% 49.8% 304.0
Additional KPIs
Adjusted EBITDA 822.5 828.9 657.1 25.2% 26.1% 901.2
Adjusted EBITDA margin
16.9% 17.1% 14.6% 2.3pp 2.5pp 14.8%
Free cash flow 288.7 N/A 169.5 70.3% N/A 552.1
Cash conversion rate 69.0% N/A 53.0% 16.0pp N/A 135.1%
*Constant currencies measured using average exchange rates for 2023
Reported revenue grew 8.2% (constant
8%) in the first nine months of 2024 to DKK
4,862.3m. Revenue in the public segment
grew 9.9%, while revenue in private seg-
ment grew 4.5% compared to the same
period last year.
Client facing FTEs grew 3.5% and the aver-
age number of FTEs amounted to 7,927.
Gross profit margin was 29.2% in the first
nine months of 2024 compared to 27.7%
in the same period last year. The improve-
ment in gross profit margin was a result of
continued recovery in the Danish part of
the Group and improved performance in
Netcompany-Intrasoft, the Netherlands and
Norway.
Adjusted EBITDA increased 25.2% in the
first nine months of 2024 to DKK 822.5m
compared to DKK 657.1m in the first nine
months of 2023. The adjusted EBITDA mar-
gin was 16.9% (constant 17.1%) in the first
nine months of 2024 compared to 14.6%
in the same period last year. The improve-
ment was driven by improvement in all
entities besides the UK and despite lower
licence revenue in the period.
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
9
38
Business Segments 9 months
DKK million
YTD 2024
Constant (2023 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 4,853.9 2,318.8 1,680.8 449.4 256.8 148.0
Gross profit 1,439.0 911.0 349.1 82.9 44.5 51.3
Gross profit margin 29.6% 39.3% 20.8% 18.4% 17.3% 34.7%
Local admin costs -567.4 -318.3 -146.0 -47.3 -35.9 -20.0
Adjusted EBITDA before allocated cost from HQ 871.5 592.8 203.1 35.6 8.6 31.4
Adjusted EBITDA margin before allocated cost from HQ
18.0% 25.6% 12.1% 7.9% 3.4% 21.2%
Allocated costs from HQ -42.6 -30.0 0.0 -6.7 -3.8 -2.2
Special Items, allocated -0.7 -0.5 0.0 - 0.1 -0.1 -0.0
Depreciation -141.9 -71.9 -54.2 -4.8 -6.3 -4.7
Amortisation -87.4 -34.3 -42.4 -5.7 -3.2 -1.9
Other operating income / expense -0.3 0.0 -0.3 0.0 0.0 0.0
EBIT 598.5 456.1 106.3 18.4 -4.7 22.5
Client facing FTEs 7,421 2,804 3,497 578 357 184
DKK million
YTD 2023
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 4,495.8 2,140.1 1,523.4 494.7 234.1 103.5
Gross profit 1,259.1 782.6 307.0 126.2 25.2 18.1
Gross profit margin 28.0% 36.6% 20.2% 25.5% 10.7% 17.5%
Local admin costs -563.5 -311.0 -132.8 -57.9 -41.6 -20.3
Adjusted EBITDA before allocated cost from HQ 695.6 471.6 174.3 68.4 -16.4 -2.2
Adjusted EBITDA margin before allocated cost from HQ 15.5% 22.0% 11.4% 13.8% -7.0%
-2.2%
Allocated costs from HQ -38.5 -27.0 0.0 -6.5 -3.3 -1.7
Depreciation -141.1 -81.9 -40.4 -8.6 -5.7 -4.5
Amortisation -104.5 -52.0 -32.3 -11.4 -5.7 -3.0
Other operating income / expense 0.6 0.0 0.6 0.0 0.0 0.0
EBIT 412.1 310.7 102.2 41.8 -31.1 -11.5
Client facing FTEs 7,168 2,860 3,190 608 351 158
Revenue, %
.%
.%
.%
YTD 2024
.%
.%
Revenue, %
.%
.%
.%
YTD 2023
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
10
38
Netcompany Denmark
Revenue growth in the Danish business
unit was 8.4% for the first nine months of
2024. Revenue grew 9.9% and 5.8% in the
public and private segment, respectively.
Throughout the first nine months of the
year both segments benefited from the
Go-To-Market strategy, launched in the be-
ginning of 2023, with focus on product and
platform sales.
Gross profit margin was 39.3% in the first
nine months of 2024 compared to 36.6%
in the same period last year. The increase
was driven by improved performance and
utilisation.
Adjusted EBITDA increased 25.7% to DKK
592.8m in the first nine months of 2024,
yielding a margin of 25.6% compared to
22% in the same period last year. The in-
crease was a result of improved gross prof-
it margin.
Netcompany-Intrasoft
Netcompany-Intrasoft grew revenue 10.3%
in the first nine months of 2024. The growth
was driven by strong performance in the
public and EU area that grew 14.4%, while
revenue in the private segment declined
1.3% in the period. The decline in the private
segment was expected, as revenue in the
first nine months of 2023 grew 22.8% and
thus constituted a tough comparable.
Gross profit margin was 20.8% in the first
nine months of the year, compared to
20.2% in the same period last year. The
margin increased despite lower licence rev-
enue in the period. For 2024, licence reve-
nue is expected to be backend-loaded.
Adjusted EBITDA grew 16.5% and was DKK
203.1m for the first nine months of 2024
yielding a margin of 12.1% compared to
11.4% in the first nine months of 2023. The
increase was a result of better project ex-
ecution.
Netcompany UK
Revenue in the UK was DKK 449.4m for
the first nine months of 2024, compared
to DKK 494.7m in the same period in 2023.
The decline in revenue was a result of a 17%
decline in the public segment, offsetting
revenue growth of 13.6% in the private seg-
ment in the period.
Revenue from the large strategic contract
announced earlier in 2024 is not expected
to ramp up significantly until during 2025.
Gross profit margin in the UK was 18.4% for
the first nine months of 2024. The lower
margin compared to the same period the
year before, was a result of continued time
spend on business development and sever-
ance costs.
Adjusted EBITDA margin was 7.9% for the
first nine months of 2024 compared to
13.8% in the same period last year.
Netcompany Norway
In Netcompany Norway revenue grew 9.7%
in the first nine months of 2024. The growth
was driven by the public segment that grew
revenue 15.3% in the period, whereas the
private segment was on level with the same
period last year and grew by 3.1%.
The gross profit in Norway was DKK 44.5m
for the first nine months of 2024, yielding a
margin of 17.3%, compared to a margin of
10.7% for the same period the year before.
The improvement in gross profit margin
was a result of better utilisation and the
first signs of benefit from the Avinor win an-
nounced in the beginning of the year.
Adjusted EBITDA margin was 3.4% for the
first nine months of the year, compared to
negative 7% in the same period last year.
Netcompany Netherlands
In the first nine months of 2024 Netcom-
pany Netherlands grew revenue 43.1% to
DKK 148m, an increase solely driven by the
public segment.
The gross profit margin was 34.7% for the
first nine months, compared to 17.5% for
the same period in 2023. The increase in
margin was a result of continued focus on
jointed projects delivery and no more lega-
cy projects in the business unit.
Adjusted EBITDA was DKK 31.4m for the
first nine months of 2024, yielding a margin
of 21.2% compared to negative 2.2% in the
same period last year.
BUSINESSSEGMENTS9MONTHS
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
11
38
Netcompany measures revenue visibility
on a 12 months rolling basis, based on two
main input parameters, which are defined
as total value of committed engagements
(which is comprised of fixed price en-
gagements and service agreements), and
ongoing time and material engagements
with a high likelihood of conversion and/or
prolongation, defined as non-contractual
committed engagements.
By the beginning of October 2024, reve-
nue visibility for 2024 amounted to DKK
6,278.7m. Of this, contractual committed
revenue amounted to DKK 1,335.5m and
non-contractual committed engagements
amounted to DKK 80.9m, while realised
revenue in the first nine months of 2024
amounted to DKK 4,862.3m.
Compared to Q3 2023, revenue visibility
improved 7% from DKK 5,867.9m for 2023
to DKK 6,278.7m for 2024. Compared to Q2
2024, revenue visibility improved by 7.5%.
Revenue visibility in the public segment
amounted to DKK 4,313.7m, of which con-
tractual committed revenue amounted to
DKK 934.8m and non-contractual com-
expected to be released in the last three
months of 2024 and DKK 6,178m is expect-
ed to be released in the period from 2025
to 2031.
Revenue visibility
mitted engagements amounted to DKK
40m, while realised revenue in the first nine
months of 2024 amounted to DKK 3,339m.
Revenue visibility in the private segment
amounted to DKK 1,965m, of which con-
tractual committed revenue amounted to
DKK 400.8m and non-contractual com-
mitted engagements amounted to DKK
40.9m, while realised revenue in the first
nine months of 2024 amounted to DKK
1,523.3m.
By the beginning of October 2024, the total
order backlog for Netcompany-Intrasoft
amounted DKK 6,658.9m mainly within
EU institutions. Of the total order backlog
for Netcompany-Intrasoft DKK 480.9m is
DKK million
.
,.
.%
,.
.
.
.
.%
.%
.%
.%
.%
,.
,.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Public segment Private segment Total segment
Non con-
tractual
committed
.
.%
.%
.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
.
.
.%
.%
.%
,.
,.
.%
.
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
12
38
Employees
Netcompany employed an average of
8,088 FTEs in Q3 2024, which was an in-
crease of 328 FTEs or 4.2% compared to
Q3 2023 (7,760 FTEs).
The number of client facing employees for
the Group increased by 309 from 7,270 in
Q3 2023 to 7,579 in Q3 2024, while the level
of non-client facing employees was on level
with Q3 2023.
The attrition rate for the last twelve months
was 17.5%, which was an increase of 0.8
percentage points compared to the same
period last year.
The overall 3 months rolling churn in-
creased by 0.7 percentage points com-
pared to the same period last year, mainly
caused by increased attrition rates in Nor-
way, UK and Luxembourg.
Avg. FTEs increased to 8,088 during Q3 2024
YTD
Attrition rate
.%
.%
.%
.%
.%
.%
.%
DK NO UK NL
.%
GR LUBE
.%
.%
.%
.%
LTMSEPTEMBER2023
LTMSEPTEMBER2024
3MONTHSROLLING
CHURNSEPTOCT2024
%
%
%
%
%
%
%
%
%
%
%
.%
.%
.%
.%
.%
.%
.%
.%
.%
YTD
,
, ,
,
,
Q
,
,
NONCLIENTFACING
FREELANCERS
UNITEDKINGDOM POLAND
DENMARK
UKCONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
,
,
, ,
,
Q
,
,
,
,
,
,
,
,
,
,
,
,
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
13
38
Free cash flow and cash conversion rate
1
Free cash flow increased by 44.8% to
DKK 145.3m in Q3 2024, compared to
DKK 100.4m in Q3 2023. The increase was
driven by improved operating profit before
depreciation and amortisation of DKK 86m
and slightly offset by the development in
working capital changes in Q3 2024 of DKK
53.1m compared to Q3 2023. The negative
development in working capital changes
in Q3 2024 was mainly caused by tying up
of work in progress due to timing in larger
fixed fee projects, which was somewhat
offset by the development in trade receiv-
ables.
Normalised for taxes paid on account
1
, the
Group generated a free cash flow of DKK
96.4m in Q3 2024 compared to DKK 79.4m
in Q3 2023.
Cash conversion rate was 89.5% in Q3
2024 – on level with 93% in Q3 2023. How-
ever, adjusted for taxes paid on account,
cash conversion rate decreased from
73.6% in Q3 2023 to 59.4% in Q3 2024. The
decrease in tax normalised cash conver-
sion was caused by a temporally high cash
conversion rate in Q2 2024 at 104.7%.
For the first nine months, Netcompany
more than doubled the free cash flow to
DKK 288.7m compared to the same period
last year, following the same reasons as for
the quarter – improved EBITDA and slightly
offset by development in working capital
changes.
For the first nine months, tax normalised
cash conversion ratio improved by 20.3
percentage points to 68.1% compared to
47.8% in the same period in 2023.
Trade receivables
End of Q3 2024, trade receivables amount-
ed to DKK 1,232.3m compared to DKK
1,079.1m end of Q3 2023, corresponding to
an increase of 14.2% compared to revenue
growth of 10.4%.
The increase in trade receivables com-
pared to revenue was impacted by a high
level of trade receivables in the end of Q2
2024 and public customers in Greece pay-
ing later than usual.
Compared to Q2 2024, trade receivables
decreased by 6.9% from DKK 1,324.1m. The
decrease in trade receivables within the
quarter was caused by a high conversion of
work in progress to trade receivables end
of Q2 2024, which was collected during Q3
2024. This was, however, somewhat offset
by the Greek public customers.
As a result, days sales outstanding de-
creased from 73 days in Q2 2024 to 70
days in Q3 2024. Compared to Q3 2023
days sales outstanding increased by 2.3
days due to larger amounts of outstanding
overdue by more than 30 days. However,
the relative split of overdue trade receiva-
bles decreased by 2.3 percentage points
from 37.4% by the end of Q3 2023 to 35.1%
by the end of Q3 2024 caused by 18.4%
increased invoicing end of September 2024
compared to September 2023.
Capital and other financial positions
1
Taxes paid within the Group are, due to local tax
regulations, paid on account in Q1 and in Q4. To
adjust for this timing mismatch between expensed
and paid corporate income taxes, the free cash flow
should be viewed in a tax normalised manner to bet-
ter reflect the underlying development in free cash
flow based on operations rather than impact from
local tax legislation in Denmark.
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
Trade receivables, 30
September 2024
816.0 255.4 55.8 54.2 75.4 -24.6 1,232.3
Trade receivables, 30
September 2023
689.1 254.6 46.6 13.5 97.0 -21.8 1,079.1
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
14
38
CASHFLOWANDOTHERSIGNIFICANT
FINANCIALPOSITIONS
CONTINUED
Work in progress
At 30 September 2024, Netcompany’s work
in progress amounted to DKK 1,025.9m,
represented by contract work in progress
of DKK 1,590.4m and prepayments received
from customers of DKK 564.5m.
Work in progress increased by 0.5% from
DKK 1,021.1m in Q3 2023 to DKK 1,025.9m
in Q3 2024. In the same period revenue
increased 10.4%, whereas revenue in the
prevailing 12 months (LTM) increased by
7.1%. As a total, trade receivables and work
in progress increased by 7.5% from DKK
2,100.1m end of Q3 2023 to DKK 2,258.2m
end of Q3 2024, compared to an increase
in revenue by 10.4% in the same period.
In that aspect, growth in work in progress
and trade receivables versus revenue
growth was more balanced.
Funding and liquidity
Originally, the maturity of the Group bank
loan would expire in 2025. In April 2023
and April 2024, the loan was prolonged
twice by one year and now runs to 2027.
The combined committed facilities con-
stitute DKK 2,846.9m and an additional
facility of DKK 2,000m available only for
new acquisitions. At 30 September 2024,
DKK 1,626.9m of the committed lines
were utilised on borrowings and DKK
37.5m on guarantees, leaving a total of
DKK 3,182.5m available in unutilised fund-
ing of which DKK 1,182.5m can be utilised
for normal operations if needed with no
additional costs or covenants.
In addition, Netcompany-Intrasoft had
utilised DKK 532.5m on local guarantees,
having no impact on the Group facilities
except for leverage.
Including net cash balance as of 30
September 2024 of DKK 32.6m available
Group funding was DKK 1,215.1m.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Report
for 2023.
Capital structure
In Q3 2024, debt leverage to 12 months roll-
ing adjusted EBITDA was 1.5x compared to
1.6x in Q3 2023. All covenants are complied
with.
Events after the balance sheet date
To this date, no events have occurred after
the balance sheet date, which would in-
fluence the evaluation of this report.
+.%
+.%
+.%
,.
,.
Work in progress overview (DKK million)
,
,
Sept.
Q
Q
LTM
,.
WIP
REVENUE
,.
Sept.
,.
Q
Q
LTM
,.
,
,
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
15
38
Original Actual
target performance
Financial metrics in constant currencies
2024 2023
Group revenue growth, organic 7-10% 10.7%
Group Adjusted EBITDA margin
15-18%
14.9%
Netcompany realised revenue growth of
10.4% and adjusted EBITDA margin of 19.1%
(both in constant currencies) in Q3 2024. For
the first nine months revenue growth was
8% and adjusted EBITDA margin was 17.1%
(both in constant currencies).
Cash flow was in line with expectations. As
a result, Netcompany will initiate another
share buyback programme of DKK 250m to
be executed before the release of the An-
nual Report for 2024 at the end of January
2025. Total share buybacks to be executed
in 2024 is consequently expected to be
around DKK 715m.
For 2024, the amount of realised licence
revenue associated to projects entailing im-
plementation of the products from our offer-
ings are significantly lower than at the same
period last year. On the other hand, we ex-
pect licence revenue to account for at least
1% of total revenue with a potential upside
meaning that the realisation of licence rev-
enue for 2024 will be more backend-loaded
than in 2023.
We maintain our expectations to full year
revenue growth of 7-10% and an adjusted
EBITDA margin of 15-18%. We increase the
initiated share buyback programme from
originally more than DKK 500m to DKK
800m.
We reiterate our midterm financial targets
of revenue of at least DKK 8.5bn, EBITDA
margin of at least 20% and re-distribution of
at least DKK 2bn of cash to shareholders by
the end of 2026.
A number of risks and assumptions to our
full year guidance for 2024 were discussed
in connection with our Annual Report 2023.
Those risk still prevail and could impact our
performance for the remaining part of 2024.
Guidance 2024
Midterm targets 2026
Revenue >8.5bn
Adjusted EBITDA margin >20%
Cash redistribution to share-
holders >2bn
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
16
38
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. End of Q3 2024,
Netcompany holds 2,055,409 treasury
shares equivalent to 4.1% of the share cap-
ital. The shares will be used to honour the
Group’s commitments under its Long-Term
Incentive programmes. Shares exceeding
the commitments under the long-term
incentive programmes will be cancelled on
an ongoing basis.
Share-based incentive schemes/restrict-
ed stock units
In total, 467,035 restricted stock unites
(RSUs) and 154,200 matching shares
in relation to the share-based incentive
schemes were issued at 30 September
2024 of which 101,640 RSUs and 24,000
matching shares were granted to Execu-
tive Management and 365,395 RSUs and
130,200 matching shares were granted
to Other Key Management Personnel and
Other Employees.
The fair value of the shares at grant was
DKK 180m. The cost related hereto is
expensed over the vesting period.
A total amount of DKK 14.1m was recog-
nised as personnel costs in the income
statement in Q3 2024 and DKK 40.9m for
the first nine month of 2024.
Additional information on the holdings of
Netcompany shares and restricted stock
units by members of the Board of Directors
and Executive Management Board is dis-
closed in the Remuneration Report.
Financial Calendar
20 January 2025
Deadline for shareholders to submit
proposals for the agenda of the Annual
General Meeting 2024.
28 January 2025
Annual Report for the financial year 2024.
4 March 2025
Annual General Meeting 2024.
1 May 2025
Interim report for the first 3 months of
2025.
14 August 2025
Interim report for the first 6 months of
2025.
30 October 2025
Interim report for the first 9 months of
2025.
Shareholder information
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
17
38
Statement of the Board of Directors
and Executive Management
Executive Management
Board of Directors
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
18
38
Consolidated interim
financial statements
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
19
38
Income statement and Statement
of comprehensive income
DKK million
Note Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Income statement
Revenue 1 1,613.9 1,461.7 4,862.3 4,495.8 6,078.4
Cost of services 2 -1,114.5 -1,059.3 -3,444.7 -3,250.5 -4,375.5
Gross profit 499.5 402.4 1,417.7 1,245.3 1,703.0
Sales and marketing costs -12.9 -13.0 -36.9 -38.7 -54.7
Administrative costs 3 -227.4 -215.1 -700.3 -690.7 -935.5
Special items 0.0 0.0 -0.7 0.0 -0.5
Other operating income / expense -0.4 -0.0 -0.3 0.6 -0.0
EBITA 258.7 174.3 679.4 516.6 712.2
Amortisation -29.8 -35.8 -87.4 -104.5 -134.2
Operating profit (EBIT) 228.9 138.5 591.9 412.1 578.0
Financial income 4 6.8 10.0 22.6 18.9 25.2
Financial expenses 4 -43.0 -45.6 -127.1 -118.7 -163.3
Income / loss, joint venture / associates -3.8 -2.3 -12.9 -6.8 -7.7
Profit / loss before tax 188.9 100.6 474.5 305.4 432.3
Tax on the profit for the period -49.9 -20.7 -124.1 -67.0 -128.2
Net profit / loss for the period 139.1 80.0 350.4 238.5 304.0
Of which
Non-controlling interest
-0.4 0.2 -2.0 0.2 0.5
Netcompany Group A/S' share 139.5 79.8 352.4 238.3 303.5
Earnings per share
Earnings per share (DKK) 5 2.89 1.61 7.22 4.81 6.13
Diluted Earnings per share (DKK) 5 2.86 1.60 7.15
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
20
38
Statement of comprehensive income
Net profit / loss for the period 139.1 80.0 350.4 238.5 304.0
Other comprehensive income items that may be reclassified subse-
quently to profit or loss:
Exchange rate adjustments on translating foreign subsidiaries -0.6 -1.3 2.2 3.4 6.7
Other comprehensive income items that may not be reclassified to
profit or loss:
Actuarial profit / loss on defined benefit plans 0.0 0.0 0.0 0.0 1.1
Other comprehensive income, net of tax -0.6 -1.3 2.2 3.4 7.8
Of which
Non-controlling interest -0.2 0.1 -0.1 0.1 -0.2
Netcompany Group A/S' share -0.5 -1.4 2.3 3.4 7.9
Total comprehensive income / loss 138.4 78.7 352.6 241.9 311.8
Of which
Non-controlling interest -0.6 0.3 -2.1 0.2 0.4
Netcompany Group A/S' share
DKK million
Note Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
INCOMESTATEMENTANDSTATEMENT
OFCOMPREHENSIVEINCOME
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
21
38
Statement of financial position
30 September 30 September 31 December
DKK million
Note 2024 2023 2023
Assets
Intangible assets 3,710.9 3,739.7 3,733.1
Tangible assets 881.1 912.6 946.9
Investment in joint venture 79.5 91.7 89.5
Investment in associates 111.7 113.2 114.6
Other securities and invest-
ments
Other receivables 47.4 52.7 54.5
Deferred tax assets 47.7 41.7 41.8
Total non-current assets 4,879.4 4,952.7 4,981.4
Trade receivables 6 1,232.3 1,079.1 1,261.8
Receivables from joint venture 5.7 6.9 8.1
Receivables from associates 12.0 16.4 12.7
Contract work in progress 7 1,590.4 1,509.2 1,263.9
Other receivables 127.0 84.4 61.9
Prepayments 111.2 109.8 122.0
Tax receivables 17.7 20.7 0.0
Total receivables 3,096.3 2,826.5 2,730.3
Cash 32.6 100.5 448.1
Total current assets 3,128.9 2,927.0 3,178.4
Total assets 8,008.3 7,879.8 8,159.8
30 September 30 September 31 December
DKK million
Note 2024 2023 2023
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -650.0 -195.5 -193.1
Retained earnings 4,319.6 3,891.5 3,965.1
Other reserves
Equity attributable to Group 3,721.1 3,746.5 3,823.5
Non-controlling interest 4.4 6.4 6.5
Total equity 3,725.5 3,752.9 3,830.1
Borrowings 1,573.2 1,574.6 1,586.9
Lease liabilities 738.9 760.9 761.8
Pension obligations 21.4 15.8 19.0
Deferred tax liability 63.7 100.7 69.0
Total non-current liabilities 2,397.2 2,452.0 2,436.7
Borrowings 46.9 170.1 146.9
Lease liabilities 105.1 80.5 114.7
Pension obligations 1.7 5.8 1.7
Prebilled invoices 7 564.5 488.2 561.3
Trade payables 349.7 298.2 340.0
Other payables 8 755.2 629.7 670.9
Provisions 0.2 2.4 16.7
Income tax payable 62.3 0.0 40.9
Total current liabilities 1,885.6 1,674.9 1,893.1
Total liabilities 4,282.8 4,126.9 4,329.8
Total equity and liabilities 8,008.3 7,879.8 8,159.8
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
22
38
Cash Flow statement
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Operating profit (EBIT) 228.9 138.5 591.9 412.1 578.0
Depreciation and amortisation 77.0 81.4 229.6 245.6 322.7
Non-cash items 13.5 13.2 41.2 34.4 44.2
Working capital changes -111.3 -58.2 -265.2 -219.2 26.7
Total 208.1 174.9 597.5 472.9 971.6
Income taxes paid -1.6 -9.1 -132.6 -70.0 -103.3
Financial income received 3.7 2.7 13.6 5.3 7.6
Financial expenses paid -30.6 -32.0 -92.7 -81.0 -117.3
Cash flow from operating activities 179.6 136.6 385.8 327.2 758.6
Other investments -0.1 -106.1 -0.1 -105.8 -105.7
Capitalisation of intangible assets -23.7 -26.2 -64.3 -84.8 -107.9
Acquisition of fixed assets -10.6 -10.0 -32.8 -72.9 -98.5
Disposals of fixed assets 0.0 0.0 0.0 0.0 4.9
Other receivables (deposits) 9.2 4.3 6.6 4.5 4.5
Cash flow from investment activities -25.2 -137.9 -90.6 -259.0 -302.8
Payment of treasury shares -212.1 -31.7 -499.6 -31.7 -32.0
Proceeds from borrowings 0.0 127.0 0.0 127.5 127.5
Repayment of borrowings -107.5 0.5 -113.7 -304.9 -314.3
Repayment of lease liabilities -39.7 -31.2 -99.3 -94.1 -124.5
Cash flow from financing activities -359.3 64.6 -712.6 -303.2 -343.4
Net increase in cash and cash equivalents -204.8 63.3 -417.4 -235.0 112.4
Cash and cash equivalents at the beginning 237.2 36.7 448.1 336.0 336.0
Effect of exchange rate changes on the balance cash held in foreign currencies 0.2 0.5 1.9 -0.5 -0.4
Cash and cash equivalents at the end 32.6 100.5 32.6 100.5 448.1
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
23
38
Statement of changes in Equity
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries reserves earnings Group A/S interest Total equity
Equity at 1 July 2024 50.0 -438.9 64.4 8.1 1.5 4,094.2 3,779.2 5.0 3,784.2
Profit for the period 0.0 0.0 0.0 0.0 0.0 139.5 139.5 -0.4 139.1
Other comprehensive income 0.0 0.0 0.0 -0.5 0.0 0.0 -0.5 -0.2 -0.6
Total comprehensive income 0.0 0.0 0.0 -0.5 0.0 139.5 139.0 -0.6 138.4
Treasury Shares for the period 0.0 -211.2 0.0 0.0 0.0 0.0 -211.2 0.0 -211.2
Share-based remuneration for the period 0.0 0.2 14.0 0.0 0.0 -0.1 14.1 0.0 14.1
Total transactions with owners 0.0 -211.0 14.0 0.0 0.0 -0.1 -197.1 0.0 -197.1
Equity at 30 September 2024 50.0 -650.0 78.5 7.6 1.5 4,233.5 3,721.1 4.4 3,725.5
Equity at 1 January 2024 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
Profit for the period 0.0 0.0 0.0 0.0 0.0 352.4 352.4 -2.0 350.4
Other comprehensive income 0.0 0.0 0.0 2.3 0.0 0.0 2.3 -0.1 2.2
Total comprehensive income 0.0 0.0 0.0 2.3 0.0 352.4 354.8 -2.1 352.6
Treasury Shares for the period 0.0 -498.1 0.0 0.0 0.0 0.0 -498.1 0.0 -498.1
Share-based remuneration for the period 0.0 41.2 11.3 0.0 0.0 -11.6 40.9 0.0 40.9
Total transactions with owners 0.0 -456.9 11.3 0.0 0.0 -11.6 -457.2 0.0 -457.2
Equity at 30 September 2024 50.0 -650.0 78.5 7.6 1.5 4,233.5 3,721.1 4.4 3,725.5
Equity at 1 July 2023 50.0 -183.6 49.8 3.2 0.4 3,767.8 3,687.5 6.1 3,693.6
Profit for the period 0.0 0.0 0.0 0.0 0.0 79.8 79.8 0.2 80.0
Other comprehensive income 0.0 0.0 0.0 -1.4 0.0 0.0 -1.4 0.1 -1.3
Total comprehensive income 0.0 0.0 0.0 -1.4 0.0 79.8 78.4 0.3 78.7
Treasury Shares for the period 0.0 -12.8 0.0 0.0 0.0 -18.8 -31.5 0.0 -31.5
Share-based remuneration for the period 0.0 0.9 11.5 0.0 0.0 -0.3 12.1 0.0 12.1
Total transactions with owners 0.0 -11.9 11.5 0.0 0.0 -19.0 -19.4 0.0 -19.4
Equity at 30 September 2023 50.0 -195.5 61.2 1.7 0.4 3,828.5 3,746.5 6.4 3,752.9
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
24
38
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries reserves earnings Group A/S interest Total equity
STATEMENTOFCHANGESINEQUITY
Equity at 1 January 2023 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
Adjusted Equity at 1 January 2023 50.0 -313.3 172.6 -1.6 0.4 3,610.5 3,518.6 6.2 3,524.8
Total comprehensive income 0.0 0.0 0.0 6.9 1.1 303.5 311.4 0.4 311.8
Total transactions with owners 0.0 120.2 -105.4 0.0 0.0 -21.3 -6.5 0.0 -6.5
Equity at 31 December 2023 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
Equity at 1 January 2023 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
Adjustment related to previous year* 0.0 0.0 118.4 0.0 0.0 -120.4 -2.1 0.0 -2.1
Adjusted Equity at 1 January 2023 50.0 -313.3 172.6 -1.6 0.4 3,610.5 3,518.6 6.2 3,524.8
Profit for the period 0.0 0.0 0.0 0.0 0.0 238.3 238.3 0.2 238.5
Other comprehensive income 0.0 0.0 0.0 3.4 0.0 0.0 3.4 0.1 3.4
Total comprehensive income 0.0 0.0 0.0 3.4 0.0 238.3 241.7 0.2 241.9
Treasury Shares for the period 0.0 -12.8 0.0 0.0 0.0 -18.8 -31.5 0.0 -31.5
Share-based remuneration for the period 0.0 130.6 -111.4 0.0 0.0 -1.5 17.7 0.0 17.7
Total transactions with owners 0.0 117.8 -111.4 0.0 0.0 -20.3 -13.8 0.0 -13.8
Equity at 30 September 2023 50.0 -195.5 61.2 1.7 0.4 3,828.5 3,746.5 6.4 3,752.9
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
25
38
Segment information
Public Q3
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q3 2024 Q3 2023 % change Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023
Revenue 1,122.1 1,003.9 11.8% 480.8 425.2 437.9 384.0 103.6 119.2 50.9 38.1 48.9 37.5
Cost of service -780.1 -734.7 6.2% -289.1 -260.8 -346.2 -321.4 -82.4 -92.4 -31.1 -32.2 -31.3 -27.9
Gross profit 342.0 269.2 27.0 % 191.7 164.4 91.6 62.6 21.2 26.8 19.8 5.9 17.7 9.6
Gross profit margin 30.5% 26.8% 3.7pp 39.9% 38.7% 20.9% 16.3% 20.5% 22.5% 39.0% 15.4% 36.1% 25.5%
Allocated costs -152.3 -145.3 4.8% -74.9 -70.7 -51.4 -44.1 -11.4 -14.9 -6.8 -7.5 -7.7 -8.1
Adjusted EBITA before HQ costs 189.7 124.0 53.1% 116.7 93.7 40.2 18.5 9.8 11.9 13.0 -1.6 9.9 1.4
Adjusted EBITA margin before
allocated cost from HQ
16.9% 12.3% 4.6pp 24.3% 22.0% 9.2% 4.8% 9.5% 10.0% 25.5% -4.2% 20.3% 3.8%
Allocated costs from HQ -8.9 -7.9 11.8% -6.0 -5.3 0.0 0.0 -1.5 -1.6 -0.6 -0.5 -0.7 -0.6
EBITA 180.9 116.0 55.9% 110.7 88.5 40.2 18.5 8.4 10.4 12.4 -2.1 9.2 0.8
EBITA margin 16.1% 11.6% 4.6pp 23.0% 20.8% 9.2% 4.8% 8.1% 8.7% 24.3% -5.6% 18.8% 2.2%
Amortisation -19.9 -23.8 -16.5% -5.3 -9.7 -12.1 -9.2 -1.3 -2.9 -0.6 -1.0 -0.6 -1.1
Operating profit 161.0 92.2 74.6% 105.4 78.8 28.1 9.3 7.1 7.5 11.8 -3.1 8.6 -0.3
Operating profit margin 14.3% 9.2% 5.2pp 21.9% 18.5% 6.4% 2.4% 6.8% 6.3% 23.2% -8.1% 17.5% -0.8%
NOTE1
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
26
38
Segment information
Private Q3
CONTINUED
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q3 2024 Q3 2023 % change Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023
Revenue 491.8 457.8 7.4 % 278.3 252.1 133.7 134.1 48.5 41.7 31.3 29.7 0.0 0.2
Cost of service -334.4 -324.6 3.0% -156.2 -148.2 -108.6 -109.1 -38.2 -33.3 -31.3 -33.9 -0.1 -0.2
Gross profit 157.4 133.2 18.2% 122.1 103.9 25.1 24.9 10.4 8.5 -0.0 -4.1 -0.0 0.0
Gross profit margin 32.0% 29.1% 2.9pp 43.9% 41.2% 18.8% 18.6% 21.4% 20.3% -0.2% -13.9% -61.3% 18.8%
Allocated costs -74.2 -70.7 5.0% -45.2 -41.3 -17.4 -16.3 -5.6 -5.7 -6.0 -7.4 -0.0 -0.0
Adjusted EBITA before HQ costs 83.2 62.5 33.1% 76.8 62.6 7.7 8.6 4.8 2.8 -6.0 -11.5 -0.0 0.0
Adjusted EBITA margin before
allocated cost from HQ
16.9% 13.7% 3.3pp 27.6% 24.8% 5.7% 6.4% 9.8% 6.6% -19.2% -38.7% -83.2% 5.5%
Allocated costs from HQ -5.0 -4.2 18.0% -3.7 -3.1 0.0 0.0 -0.7 -0.6 -0.6 -0.5 -0.0 -0.0
Other operating income / expense -0.4 -0.0 42552.3% 0.0 0.0 -0.4 -0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 77.8 58.3 33.5% 73.2 59.5 7.2 8.6 4.0 2.2 -6.6 -12.0 -0.0 0.0
EBITA margin 15.8% 12.7% 3.1pp 26.3% 23.6% 5.4% 6.4% 8.3% 5.2% -21.0% -40.5% -85.5% 4.5%
Amortisation -9.9 -12.0 -17.3% -5.9 -7.4 -2.9 -2.6 -0.6 -1.1 -0.5 -1.0 -0.0 -0.0
Operating profit 67.9 46.3 46.7% 67.2 52.2 4.4 6.0 3.4 1.1 -7.1 -13.0 -0.0 0.0
Operating profit margin 13.8% 10.1% 3.7pp 24.2% 20.7% 3.3% 4.5% 7. 0 % 2.6% -22.6% -43.7% -87.4% 2.7%
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
27
38
Segment information
Public 9 months
Group
Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2024 YTD 2023 % change YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023
Revenue 3,339.0 3,037.6 9.9% 1,444.9 1,314.3 1,290.0 1,125.8 313.2 368.2 142.9 126.4 148.0 102.8
Cost of service -2,388.9 -2,235.6 6.9% -916.2 -870.7 -1,017.1 -900.3 -259.4 -277.6 -99.5 -102.2 -96.7 -84.9
Gross profit 950.1 801.9 18.5% 528.8 443.6 272.8 225.6 53.8 90.6 43.4 24.3 51.3 18.0
Gross profit margin 28.5% 26.4% 2.1pp 36.6% 33.8% 21.2% 20.0% 17.2% 24.6% 30.4% 19.2% 34.6% 17.5%
Allocated costs -461.0 -459.6 0.3% -234.0 -235.4 -145.0 -126.3 -36.0 -49.3 -21.3 -23.9 -24.7 -24.7
Adjusted EBITA before HQ costs 489.1 342.3 42.9% 294.7 208.2 127.8 99.3 17.8 41.3 22.1 0.3 26.6 -6.8
Adjusted EBITA margin before
allocated cost from HQ
14.6% 11.3% 3.4pp 20.4% 15.8% 9.9% 8.8% 5.7% 11.2% 15.5% 0.2% 18.0% -6.6%
Allocated costs from HQ -27.2 -24.9 9.2% -18.5 -16.7 0.0 0.0 -4.5 -4.8 -1.9 -1.7 -2.2 -1.7
Special items -0.5 0.0 N/A -0.3 0.0 0.0 0.0 -0.1 0.0 -0.0 0.0 -0.0 0.0
EBITA 461.4 317.4
45.4%
275.9 191.5 127.8 99.3 13.2 36.4 20.1 -1.4 24.3 -8.5
EBITA margin
13.8% 10.4% 3.4pp 19.1% 14.6% 9.9% 8.8% 4.2% 9.9% 14.1% -1.1% 16.4% -8.3%
Amortisation -57.5 -68.4 -15.9% -16.2 -29.1 -34.0 -25.0 -3.8 -8.4 -1.7 -2.9 -1.9 -3.0
Operating profit 403.9 249.0
62.2%
259.7 162.5 93.8 74.3 9.4 28.0 18.5 -4.3 22.4 -11.5
Operating profit margin
12.1% 8.2% 3.9pp 18.0% 12.4% 7.3% 6.6% 3.0% 7. 6 % 12.9% -3.4% 15.2% -11.2%
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
28
38
Segment information
Private 9 months
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2024 YTD 2023 % change YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023 YTD 2024 YTD 2023
Revenue 1,523.3 1,458.2 4.5% 873.9 825.7 393.1 397.6 147.3 126.5 108.8 107.7 0.2 0.6
Cost of service -1,055.8 -1,014.9 4.0% -510.0 -499.8 -320.0 -316.9 -115.8 -90.9 -109.6 -106.8 -0.4 -0.5
Gross profit 467.6 443.4 5.5% 363.9 325.9 73.1 80.7 31.5 35.7 -0.8 0.9 -0.1 0.1
Gross profit margin
30.7% 30.4% 0.3pp 41.6% 39.5% 18.6% 20.3% 21.4% 28.2% -0.8% 0.8% -51.4% 15.3%
Allocated costs -233.6 -231.2 1.0% -144.1 -144.5 -51.8 -46.1 -17.3 -17.2 -20.3 -23.3 -0.1 -0.1
Adjusted EBITA before HQ costs 234.0 212.1 10.3% 219.8 181.4 21.3 34.6 14.2 18.5 -21.1 -22.4 -0.2 -0.0
Adjusted EBITA margin before
allocated cost from HQ
15.4% 14.5% 0.8pp 25.2% 22.0% 5.4% 8.7% 9.6% 14.6% -19.4% -20.8% -81.5% -1.3%
Allocated costs from HQ -15.4 -13.6 13.8% -11.4 -10.3 0.0 0.0 -2.2 -1.7 -1.8 -1.6 -0.0 -0.0
Special items -0.3 0.0 N/A -0.2 0.0 0.0 0.0 -0.0 0.0 -0.0 0.0 -0.0 0.0
Other operating income / expense -0.3 0.6 -151.0% 0.0 0.0 -0.3 0.6 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 218.0 199.2
9.5%
208.2 171.2 21.0 35.2 12.0 16.8 -23.0 -24.0 -0.2 -0.0
EBITA margin 14.3% 13.7% 0.7pp 23.8% 20.7% 5.3% 8.9% 8.2% 13.3% -21.2% -22.3% -84.2% -2.4%
Amortisation -29.9 -36.1 -17.1% -18.1 -22.9 -8.4 -7.4 -1.8 -3.0 -1.6 -2.8 -0.0 -0.0
Operating profit 188.1 163.1
15.3%
190.1 148.2 12.6 27.9 10.2 13.8 -24.6 -26.8 -0.2 -0.0
Operating profit margin 12.3% 11.2% 1.2pp 21.8% 17.9% 3.2% 7.0 % 6.9% 10.9% -22.6% -24.9% -86.4% -4.4%
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
29
38
Segment information
Geographical
Segment information related to geographical areas
Q3 2024
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 769.2 206.6 157.0 204.6 82.7 62.2 55.6 76.0 1,613.9
Q3 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 686.2 186.2 167.3 177.5 69.2 58.3 42.9 74.0 1,461.7
CONTINUED
Geographical 9 months and full year
Segment information related to geographical areas
YTD 2024
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,356.4 594.6 473.5 611.8 254.5 185.1 170.3 216.1 4,862.3
YTD 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,170.4 558.9 513.3 494.7 237.3 200.4 118.2 202.7 4,495.8
Total 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,903.1 777.3 668.8 706.6 331.4 226.1 179.8 285.4 6,078.4
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
30
38
Administrative costs
Cost of services
NOTE2
NOTE3
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Cost of services -303.6 -293.6 -877.8 -842.7 -1,163.6
Salaries -805.2 -761.0 -2,550.0 -2,394.0 -3,193.6
Depreciation -5.6 -4.6 -16.9 -13.8 -18.2
Cost of services total -1,114.5 -1,059.3 -3,444.7 -3,250.5 -4,375.5
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Administrative costs -94.9 -88.9 -291.8 -305.3 -425.9
Salaries -91.0 -85.3 -283.3 -258.1 -339.5
Depreciation -41.5 -40.9 -125.2 -127.3 -170.2
Administrative costs total -227.4 -215.1 -700.3 -690.7 -935.5
Financial income and expenses
NOTE4
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Financial Income
Exchange rate adjustments 3.5 9.3 10.9 17.0 21.9
Other financial income 3.3 0.7 6.8 1.9 3.4
Fair value adjustment 0.0 0.0 4.9 0.0 0.0
Financial income total 6.8 10.0 22.6 18.9 25.2
Financial expenses
Interest expense, bank loan -23.9 -22.5 -77.6 -62.6 -88.5
Interest expense, leasing -7.6 -7.1 -23.3 -15.4 -25.3
Exchange rate adjustments -5.7 -10.6 -9.8 -27.8 -30.7
Other financial expenses -5.8 -5.3 -16.5 -13.0 -18.7
Financial expenses total -43.0 -45.6 -127.1 -118.7 -163.3
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
31
38
Earnings per share
NOTE5
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Earnings per share - EPS (DKK) 2.89 1.61 7.22 4.81 6.13
Diluted earnings per share - EPS-D (DKK) 2.86 1.60 7.15 4.79 6.09
Profit 139.5 79.8 352.4 238.3 303.5
Average number of shares 50.0 50.0 50.0 50.0 50.0
Average number of treasury shares 1.7 0.4 1.2 0.5 0.5
Average number of shares in circulation 48.3 49.6 48.8 49.5 49.5
Average number of outstanding restricted stock units 0.5 0.3 0.5 0.3 0.3
Average number of diluted shares in circulation 48.8 49.9 49.3 49.8 49.8
The Group is continuously conducting in-
dividual assessments of bad debt. At 30
September 2024, the Group recognised a
provision for expected credit losses of DKK
24.6m (30 September 2023: DKK 21.8m),
and no credit losses have incurred during
Q3 2024.
The credit quality of trade receivables at 30
September 2024 is considered satisfactory.
Trade receivables
NOTE6
30 September 30 September 31 December
DKK million
2024 2023 2023
Not overdue 816.0 689.1 826.2
0-30 days overdue 255.4 254.6 302.9
31-60 days overdue 55.8 46.6 67.8
61-90 days overdue 54.2 13.5 13.4
Over 90 days overdue 75.4 97.0 70.7
Total trade receivables excl. expected credit loss 1,256.8 1,100.8 1,280.9
Expected credit loss -24.6 -21.8 -19.1
Total trade receivables 1,232.3 1,079.1 1,261.8
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
32
38
Contract work in progress
NOTE7
30 September 30 September 31 December
DKK million
2024 2023 2023
Selling price of work performed on fixed price projects 4,445.9 4,064.0 3,950.7
Invoiced amount on fixed price projects -3,419.9 -3,042.9 -3,248.0
Total contract work in progress 1,025.9 1,021.1 702.6
Net value – stated on a contract-per-contract basis – is presented in the statement
of financial position as follows:
Contract work in progress 1,590.4 1,509.2 1,263.9
Prebilled invoices -564.5 -488.2 -561.3
Total contract work in progress 1,025.9 1,021.1 702.6
Other costs payable include accruals for
external fees, administration costs, and
other items. Total other payables have a
remaining term of up to one year.
Other payables
NOTE8
30 September 30 September 31 December
DKK million
2024 2023 2023
Wages and salaries, payroll taxes, social security costs, etc. payable 122.8 115.8 131.2
Holiday pay obligation 131.6 127.7 112.2
VAT and duties 88.2 96.4 129.7
Holdback 10.2 10.2 10.2
Other costs payable 402.3 279.5 287.6
Total other payables 755.2 629.7 670.9
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
33
38
Income Statement classified by function
DKK million
Q3 2024 Q3 2023 YTD 2024 YTD 2023 Total 2023
Income statement
Revenue 1,613.9 1,461.7 4,862.3 4,495.8 6,078.4
Cost of services, incl. depreciation and amortisation -1,132.4 -1,072.8 -3,495.8 -3,287.9 -4,427.2
Gross profit 481.6 389.0 1,366.5 1,207.9 1,651.2
Sales and marketing costs -12.9 -13.0 -36.9 -38.7 -54.7
Administrative costs, incl. depreciation, amortisation and special items -239.3 -237.4 -737.3 -757.7 -1,018.5
Other operating income / expense -0.4 -0.0 -0.3 0.6 -0.0
Operating profit (EBIT) 228.9 138.5 591.9 412.1 578.0
Financial income 6.8 10.0 22.6 18.9 25.2
Financial expenses -43.0 -45.6 -127.1 -118.7 -163.3
Income / loss from joint venture / associates -3.8 -2.3 -12.9 -6.8 -7.7
Profit / loss before tax 188.9 100.6 474.5 305.4 432.3
Tax on the profit for the period -49.9 -20.7 -124.1 -67.0 -128.2
Net profit / loss for the period 139.1 80.0 350.4 238.5 304.0
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -23.5 -18.1 -68.1 -51.3 -70.0
Administrative costs -53.4 -63.2 -161.5 -194.3 -252.7
Depreciation and amortisation -77.0 -81.4 -229.6 -245.6 -322.7
NOTE9
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
34
38
As a part of the contract commitments with
customers, the Group has through its banks
provided performance guarantees of DKK
570m (DKK 467.2m).
In Q3 2024, Netcompany recognised
revenue from Smarter Airports A/S of DKK
10.4m (DKK 7.4m), and revenue from Festi-
na Finance A/S of DKK 2.7m (DKK 0).
There are no collaterals provided for
the Group’s bank loan.
The Group is in 2024 as well as in 2023 part
of some legal claims. The outcome of these
disputes is not considered likely to impact
the Group’s financial position significantly,
besides what is already recognised in the
balance sheet.
Related party transactions
Collateral provided and contingent liabilities
NOTE10
NOTE11
The annual consolidated financial state-
ments of the Group are prepared in
accordance with IFRS as adopted by the
European Union. The interim consolidated
financial statements included in this Q3
Accounting policies
NOTE12
2024 financial report have been prepared
in accordance with IAS 34 “Interim Finan-
cial Reporting” as adopted by the Europe-
an Union. The accounting policies applied
are consistent with those applied in the
consolidated Annual Report for the year
ended 31 December 2023 for Netcompany
Group A/S.
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
35
38
% change % change
DKK million
Q3 2024 Q3 2023 Q3 YTD 2024 YTD 2023 YTD
Income statement
Public revenue 1,122.1 1,003.9 11.8% 3,339.0 3,037.6 9.9%
Private revenue 491.8 457.8 7. 4 % 1,523.3 1,458.2 4.5%
Development revenue 444.0 433.1 2.5% 1,419.4 1,578.6 -10.1%
Maintenance revenue 1,164.2 1,025.9 13.5% 3,415.1 2,876.8 18.7%
Licence revenue 5.8 2.8 107.5% 27.8 40.4 -31.3%
Organic revenue 1,613.9 1,461.7 10.4% 4,862.3 4,495.8 8.2%
Non-organic revenue 0.0 0.0 N/A 0.0 0.0 N/A
Revenue by growth, total 1,613.9 1,461.7
10.4%
4,862.3 4,495.8
8.2%
Special items 0.0 0.0 N/A -0.7 0.0 N /A
Adjusted EBITDA 306.3 219.9 39.3% 822.5 657.1 25.2%
EBITDA 305.9 219.9 39.1% 821.5 657.7 24.9%
Adjusted EBITA 259.2 174.3 48.6% 680.4 516.0 31.9%
EBITA 258.7 174.3 48.4% 679.4 516.6 31.5%
Operating profit (EBIT) 228.9 138.5 65.2% 591.9 412.1 43.6%
Net financials -36.2 -35.6 1.7% -104.5 -99.9 4.7%
Net profit / loss 139.1 80.0 73.9% 350.4 238.5 46.9%
Financial position
Capex -34.3 -36.2 -5.1% -97.1 -157.7 -38.4%
Total assets 8,008.3 7,879.8 1.6% 8,008.3 7,879.8 1.6%
Equity 3,725.5 3,752.9 -0.7% 3,725.5 3,752.9 -0.7%
Net increase in cash and cash equivalents -204.8 63.3 -423.6% -417.4 -235.0 7 7.6 %
Free cash flow 145.3 100.4 44.8% 288.7 169.5 70.3%
Free cash flow (tax normalised) 96.4 79.4 21.4% 285.0 153.0 86.3%
Financial figures and highlights
NOTE13
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
36
38
Earnings per share
Earnings per share (DKK) 2.89 1.61 79.4% 7.22 4.81 50.1%
Diluted earnings per share (DKK) 2.86 1.60 78.6% 7.15 4.79 49.5%
Employees
Average number of full-time employees 8,088 7,760 4.2% 7,927 7,657 3.5%
Financial ratios
Revenue growth 10.4% 8.4% 2.0pp 8.2% 11.7% -3.5pp
Gross profit margin 30.9% 27.5% 3.4pp 29.2% 27.7% 1.5pp
Adjusted EBITDA margin 19.0% 15.0% 3.9pp 16.9% 14.6% 2.3pp
EBITDA margin 19.0% 15.0% 3.9pp 16.9% 14.6% 2.3pp
Adjusted EBITA margin 16.1% 11.9% 4.1pp 14.0% 11.5% 2.5pp
EBITA margin 16.0% 11.9% 4.1pp 14.0% 11.5% 2.5pp
Operating profit margin 14.2% 9.5% 4.7pp 12.2% 9.2% 3.0pp
Effective tax rate 26.4% 20.5% 5.9pp 26.2% 21.9% 4.2pp
Return on equity 3.7% 2.3% 1.5pp 9.4% 6.7% 2.7pp
Solvency ratio 46.5% 47.6% -1.1pp 46.5% 47.6% -1.1pp
ROIC 2.6% 1.5% 1.1pp 6.5% 4.5% 2.0pp
ROIC (Adjusted for Goodwill) 6.6% 4.1% 2.5pp 16.7% 12.2% 4.5pp
Cash conversion ratio 89.5% 93.0% -3.5pp 69.0% 53.0% 16.0pp
Cash conversion ratio (tax normalised) 59.4% 73.6% -14.2pp 68.1% 47.8% 20.3pp
% change % change
DKK million
Q3 2024 Q3 2023 Q3 YTD 2024 YTD 2023 YTD
FINANCIALHIGHLIGHTSANDKEYFIGURES
CONTINUED
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
37
38
Formulas
Organic
revenue
=
Revenue not classified as
non-organic revenue
Non-organic
revenue
=
Revenue from acquired businesses
the first 12 months after acquisition
Organic
Growth
1
=
Organic revenue current year x 100
Revenue last year
Gross profit
margin
1,2
=
Gross profit x 100
Revenue
EBITA
1,2
= Operating profit + Amortisation
EBITA
margin
1,2
=
EBITA x 100
Revenue
Adjusted
EBITA
=
EBITA + Special items + Other
operating income
Adjusted
EBITA
margin
=
Adjusted EBITA x 100
Revenue
Capex
1,2
=
Capitalised costs and cost spent to buy
intangible and tangible assets,
excluding impact from business
acquisitions.
Cash
conversion
ratio
1,2
=
Free cash flow x 100
Net profit - Amortisation and deferred
tax of amortisation
Days sales
outstanding
1,2
=
Trade receivables x days
Revenue
Return on
equity
2
=
Net profit for the period x 100
Average equity
Return on
invested
capital
(ROIC)
1,2
=
Net profit x 100
Average invested capital
ROIC
(Adjusted for
Goodwill)
1
=
Net profit x 100
Average invested capital
– average Goodwill
Solvency
(equity ratio)
1
=
Equity x 100
Total assets
Operating
profit margin
1
=
Operating profit x 100
Revenue
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA
margin
=
EBITDA x 100
Revenue
Adjusted
EBITDA
=
EBITDA + Special items + Other
operating income
Adjusted
EBTIDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit - Non-controlling interest
Average outstanding shares
EPS diluted
1
=
Net profit - Non-controlling interest
Average outstanding shares
+ Diluted shares
Free cash
flow
1,2
=
Cash flow from operating activities
- Capex
1
Key figures defined according to IFRS.
2
Key figures defined according to “Recommendations &
Financial Ratios” issued by the Danish Finance Society.
Key figures and financial ratios have been compiled in accordance with the following calculation formulas.
Continued growth and positive margin contribution throughout the Group.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 48/2024
31 October 2024
38
38
Disclaimer
This report contains forward-looking state-
ments including, but not limited to, the
statements and expectations contained in
the outlook section. Forward-looking state-
ments are statements (other than state-
ments of historical fact) relating to future
events and Netcompany’s anticipated or
planned financial and operational perfor-
mance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’, ‘be-
lieve’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’ or
variations of these words, including nega-
tives thereof, as well as other statements
regarding matters that are not historical
fact or regarding future events or pros-
pects, constitute forward-looking state-
ments.
Netcompany has based these for-
ward-looking statements on its current
views with respect to future events and
financial performance. These views involve
a number of risks and uncertainties, which
could cause actual results to differ materi-
ally from those predicted in the
forward-looking statements and from
the past performance of Netcompany.
Although Netcompany believes that the
estimates and projections reflected in the
forward-looking statements are reasonable,
they may prove materially incorrect, and
actual results may materially differ, e.g. as
the result of risks related to the industry in
general or Netcompany in particular, includ-
ing those described in Netcompany Group
A/S’ Annual Report 2023 and other infor-
mation made available by Netcompany.
Factors that may affect future results in-
clude, but are not limited to, global and
economic conditions, including currency
exchange rate and interest rate fluctua-
tions, delay or failure of projects related to
research and/or development, unexpected
contract breaches or terminations, un-
planned loss of patents, government-man-
dated or market-driven price decreases
for Netcompany’s products, introduction
of competing products, reliance on infor-
mation technology, Netcompany’s ability to
successfully market current and new prod-
ucts, exposure to product liability, litigation
and investigations, regulatory develop-
ments, actual or perceived failure to adhere
to ethical marketing practices, unexpected
growth in costs and expenses, failure to
recruit and retain the right employees, and
failure to maintain a culture of compliance.
As a result, forward-looking statements
should not be relied on as a prediction of
actual results. Netcompany undertakes
no obligation to update or revise any for-
ward-looking statements, whether as a re-
sult of new information, future events
or otherwise, except to the extent required
by law.
The Annual Report 2023 of Netcompany
Group A/S is available at our website
www.netcompany.com
About Netcompany
Netcompany delivers business critical IT
solutions and consultancy that help our
customers to achieve significant business
benefits in a digitised world. Netcompany
also helps our customers to manage and
operate IT solutions both on location and in
the cloud.