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Third party research

Proact: 18% adj. EBITA beat in Q3 - ABG

Proact IT Group

This is a third party research report and does not necessarily reflect our views or values

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* -5% organic growth (cons -7%) and adj. EBITA +18% vs cons* Cloud orders up 142% y-o-y, Nordics & Baltics and the UK strongest* Estimates up 4-6%, share likely to outperform post recent weaknessQ3 detailsSales SEK 1,084m (4% vs ABG 1,037m, no cons). Adj. EBITA 76m (18% vs ABG 65m), Adj. EBITA margin 7.0% (ABG 6.2%). Organic growth -5% (vs ABG -7%), of which system sales -8% (ABG -10%) and services 0% (ABG -3%). Adj. EBITA -4% y-o-y (ABG -19%) on a tough comp and a weaker market, off-set by cost reductions. Better than expected on both revenues streams, and 6% lower opex. OCF at SEK -28m (83m in Q3’24) is a bit soft.Nordics & Baltics and the UK strongest in the groupNordics & Baltics leading the way, UK develops positively while West (Netherlands) and Central (Germany) remained challenging. Cautiously optimistic outlook highlighting the local partner presence for US vendors as a positive in the geopolitical landscape, as well as continuously looking for cost improvements. Cloud order intake of SEK 248m in Q3 is up 142% y-o-y and considered very strong.Estimates up 4-6%, share to outperformWe expect consensus to raise adj. EBITA by 4-6% and share likely to outperform the market today similarly (+5-10%) post recent weakness (share -19% last 6 months). Conf call at CET 9.30.
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