Proact: Fiscal 4Q23 Financial Results

(in SEK million)	4Q22	4Q23	FY22	FY23
Revenue	1,440	1,360	4,757	4,847
*Growth*		-6%		2%
Net income (loss)	86.0	82.6	244.2	218.3

Here the financial report of Proact IT Group AB for the periods October-December 2023 and January-December 2023.

October-December 2023
• Revenue decreased by 5.6% to SEK 1,360.0 million (1,440.1).
• Adjusted EBITA decreased by 10.9% and amounted to SEK 91.1 million (102.2), corresponding to an adjusted EBITA margin of 6.7% (7.1).
• Earnings before tax amounted to SEK 82.6 million (86.0).
• Earnings after tax amounted to SEK 65.5 million (64.0).
• Earnings per share amounted to SEK 2.39 (2.34).£
• New contracts relating to cloud services worth SEK 197.0 million (142.0) were contracted, an increase by 38.7%.
• Recurring revenue (revenue from cloud and support services) amounted to SEK 436.9 million (387.9), corresponding to an annualised rate of SEK 1,747.6 million (1,551.6) and an increase of 12.6%.
• A share buy-back program was launched during the quarter and as of December 31, 218,500 shares have been acquired within the program.

Proact 4fq23

January – December 2023
• Revenue increased by 1.9% to SEK 4,847.3 million (4,756.8).
• Adjusted EBITA decreased by 4.1 per cent and amounted to SEK 302.1 million (315.0), corresponding to an adjusted EBITA margin of 6.2% (6.6).
• 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.
• Earnings before tax amounted to SEK 218.3 million (244.2).
• Earnings after tax amounted to SEK 173.1 million (191.5).
• Earnings per share amounted to SEK 6.29 (6.97).
• New contracts relating to cloud services worth SEK 548.0 million (563.1) were contracted, a decrease by 2.7%.
• Recurring revenue (revenue from cloud and support services) amounted to SEK 1,692.5 million (1,457.2), an increase of 16.1%.
•On August 28, Proacts 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.
• The board of directors proposes that the annual general meeting resolves on a dividend of SEK 2.00 (1.85) per share.