Awardit AB (publ.) – Interim Report January – September 2023

July – September 2023

• Net revenue increased with 27.3 percent to MSEK 249.5 (196.0), of which 6.8 percent organic.
  
• EBITA result amounted to MSEK 7.9 (20.1) and EBITA margin amounted to 3.2 (10.3) percent.
  
• EBITA per share, before and after dilution, amounted to SEK 0.92 (2.42).
  
• Operating result EBIT amounted to MSEK -2.6 (10.7) and EBIT margin amounted to -1.0 (5.4) percent.
  
• The result for the quarter amounted to MSEK 1.0 (3.2) and earnings per share after tax, before and after dilution amounted to SEK 0.11 (0.39).

January – September 2023

• Net revenue increased with 29.1 percent to MSEK 719.4 (557.3), of which 8.2 percent organic.
  
• EBITA result amounted to MSEK 29.0 (53.6) and EBITA margin amounted to 4.0 (9.6) percent.
  
• EBITA per share, before and after dilution, amounted to SEK 3.37 (6.43).
  
• Operating result EBIT amounted to MSEK -3.8 (25.6) and EBIT margin amounted to -0.5 (4.6) percent.
  
• The result for the quarter amounted to MSEK -19.4 (-1.5) and earnings per share after tax, before and after dilution amounted to SEK -2.25 (-0.18).

Significant events during the quarter

• On 4 September, the shareholders in Awardit were summoned to an Extraordinary General Meeting, to be held on 19 September. The Board of Directors proposed that the Extraordinary General Meeting give authority to the Board to, on one or more occasions, during the period until the next Annual General Meeting, prepare and implement a programme for synthetic buy-back of own shares at a number corresponding to a maximum of ten (10) percent of all shares in the Company. Redemption of shares covered by the programme to be ultimately resolved by the General Meeting.
  
• On 6 September, it was announced that Christian Sörensen, CEO of the subsidiary MBXP ApS, had left his role and the company. As of the same date, Awardit's President and CEO took over as acting CEO of MBXP.
  
  
• On 19 September, it was announced that the Extraordinary General Meeting had resolved to give authority to the Board of Directors to, on one or more occasions, during the period until the next Annual General Meeting, prepare and implement a programme for synthetic buy-backs of own shares.
  
• On 25 September, it was announced that Paygoo, which is a subsidiary of MBXP, had made a reservation of MSEK 4.4 for customer loss and inventory impairment in connection with the bankruptcy proceedings of one of its Mastercard issuing partners, which will burden the result in the third quarter. The future operations of Paygoo have been secured and are not affected.

Significant events after the end of the reporting period

• On 26 October it was announced that Awardit AB (publ) and the owner of the leading German loyalty company, IPO PrämienServices GmbH ("IPO"), had signed a share transfer agreement through which Awardit has acquired 100 percent of IPO. The purchase price amounted to MEUR 7.8, on a debt- and cash-free basis, and will be paid in cash as of the point of accession, on 31 October. A contingent consideration corresponding to the gross profit attributable to a possible new part of the business may be added during a two-year period, but for a maximum of MEUR 2.

In a comment to the third quarter of the year CEO Erik Grohman says:

“Awardit´s core business stands strong, and we continue to grow both organically and through acquisitions. However, the third quarter´s results have been negatively affected by challenges in the subsidiary MBXP and a weak market in DACH. We are now in the fourth quarter which historically is the absolutely most important for all companies in the group, also this year.”

The Interim Report for the period January - September 2023 can also be found on Awardit´s website Investor relations | Awardit