Launch of AI driven innovation and progress in integration
Financial highlights third quarter
- Organic growth (constant currency) was 0.2% in the quarter. The organic growth was 7.6% adjusted for the one-off sales of school publications of
SEK 18 m in Region North in Q3 2022. -
The Group's net sales increased by 135.1% to
SEK 619 m (actual 263 proforma* 567). Acquired growth contributed with 129.7%. Currency effect was 5.2%. -
The Group's adjusted EBITA amounted to
SEK 116 m (actual 93, proforma* 106) with adjusted EBITA margin of 18.7% (actual 35.3%, proforma 18.7%). -
Net result amounted to
SEK 21 m (50). -
Earnings per share before and after dilution amounted to
SEK 0.20 (0.46). -
Adjusted operating cash flow amounted to
SEK -23 m (26).
Comment from CEO
In the third quarter, net sales grew with robust margins. We achieved a revenue growth of 13% and the adjusted EBITA margin was 19%. We saw strong growth in our subscription-based online sales. The Region South integration progresses well, and we are ahead of plan. During the quarter, we presented our European growth strategy and updated financial targets.
Profitable growth with increasing recurring revenue
In the third quarter, the Group net sales grew by 13% compared to proforma figures, including Region South, and adjusted for the significant one-off sales of school publications of
The organic growth in Region North was 8%, adjusted for the significant one-off mentioned above. Growth is driven by strong performance within the public sector as well as our emerging ventures in environmental, health and safety (EHS) and tax and accounting (T&A).
The net sales development in Region South is stable and in line with our expectations. Churn has improved compared to the previous year, which is positive. Cross-selling in
. The Group adjusted EBITA margin reached 19% in the third quarter. Region North was above the corresponding quarter the previous year despite to the significant one-off mentioned above. Region South was above the proforma margin. By the end of the third quarter, we have harvested cost-synergies of
Excel and grow - our strategic growth initiatives
We will capture the opportunities a growing market provides. Staying locally focused with premium proprietary content is key to success. Our local content is our strongest asset, as it generates great customer value. Local content is also an absolute prerequisite for trustworthy AI solutions.
Staying close to our customers is vital for future innovation and growth. Our industry reports such as the "Future of the legal profession" in Scandinavia and our similar reports from
We will acquire more businesses in
Update on Region South integration
We progress well in line with the plan in the Region South integration. We are currently ahead of plan in the Spanish merger, in terms of content migration as well as IT carve-out. Close to 40% of the Aranzadi content is now migrated onto the common content platform. We are currently finalising the migration to a common enterprise system. During the fourth quarter, we will consolidate offices in
2023 Capital Markets Day
Clearing the path for justice while driving profitable growth was the theme of our Capital Markets Day on
conference call on 8 november
A webcasted telephone conference will be held at
You can follow the presentation via webcast and ask questions in written form on the following page:
https://ir.financialhearings.com/karnov-group-q3-2023
If you wish to participate via telephone, and thereby be able to ask questions verbally, please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.financialhearings.com/teleconference/?id=5003515
The presentation material and the report will be available before the conference starts at www.karnovgroup.com. An on-demand version will also be available after the presentation. The presentation will also be available on www.financialhearings.com.
For more information, please contact:
Pontus Bodelsson, President and CEO
Telephone: +46 709 957 002
Email: pontus.bodelsson@karnovgroup.com
Telephone: +46 708 555 540
Email: magnus.hansson@karnovgroup.com
Telephone: +46 707 597 668
Email: erik.berggren@karnovgroup.com
This press release contains inside information that
*The proforma figures have been included for comparability. The numbers have not been audited by the company's auditor.
https://news.cision.com/karnov-group/r/karnov-group-reports-third-quarter-results-2023,c3871402
https://mb.cision.com/Main/4658/3871402/2414909.pdf
https://mb.cision.com/Public/4658/3871402/b310ab1b95a9333e.pdf
(c) 2023 Cision. All rights reserved., source