Oslo, 11 May 2023: Sikri Group ASA increased revenues by 40 percent in the first
quarter 2023 compared to the same period last year to NOK 262 million, primarily
driven by the acquisition of Metria in the second quarter of 2022 and growth in
the Public segment in Norway. Proforma revenue grew by 1 percent, curbed by low
transaction volumes in the real estate market.
Adjusted EBITDA was NOK 45 million in the first quarter 2023, representing a 17
percent adjusted EBITDA margin, down from 18 percent compared to pro forma
adjusted EBITDA in the same period in 2022. The company had a seasonally strong
free cash flow of NOK 113 million.
"Sikri Group is increasingly developing into a SaaS-based company with a growing
portion of subscription-based revenues. This means more scalability, and I am
happy to report increased operating margins and that our annual recurring
revenue (ARR) grew with 10 percent to NOK 379 million in the last 12 months. The
growth was particularly strong in the Public segment, and a churn of only 1.4
percent is evidence that this segment is well protected against an economic
slowdown," said CEO of Sikri Group Nicolay Moulin.
While the growth was good in the Public segment, revenue declined by 2 percent
in the Private segment in Norway and 1 percent in the Swedish operation Metria.
"Sikri Group is involved in 9 of 10 Norwegian real estate transactions, and
while we continue to develop products that have a low correlation to transaction
volumes, we still have significant revenues that are linked to the market
temperature. In the first quarter, the number of properties put up for sale
declined by 5 percent, which affects us negatively. At the same time, we see
some positive signals in the Norwegian real estate market going into Q2", said
Nicolay Moulin.
In April 2023, Sikri Group entered into an agreement to divest Metria's planning
& surveying business area (P&S), focusing further on scalable software and
software-related services for SEK 52.5 million.
"Our core business is software and services directly related to our software
offering, and the P&S divestment implies that we become more of a software
company. The divested business has low intrinsic margins, which means that the
divestment has a materially positive effect on the Group's EBITDA margin," said
Nicolay Moulin.
Following the divestment, Sikri Group reinforces the work of capturing synergies
between Metria and the Norwegian entities.
"We are building a strong sales organization across the company and seek to
execute on the synergy potential. The strong tailwind from the digitization of
public and private transaction processes continues," Nicolay Moulin said.
Financial highlights for the quarter (excluding divested business):
o Proforma operational organic growth of 1 percent
o Total revenue for Q1 2023 was MNOK 262, up 40 percent compared to Q1 2022
o Adjusted EBITDA for Q1 2023 was MNOK 45, up from MNOK 30 in Q1 2022, mainly
due to the acquisition of Metria AB and higher subscription revenue in Public
o Annual recurring revenue (ARR) within the Group increased to MNOK 379 at the
end of Q1 2023, up 10 percent from Q1 2022
o Divested Metria's planning & surveying business area for MSEK 52.5
o MNOK 113 free cash flow, and net interest-bearing debt reduced by MNOK 152
***
Investors, analysts, and media are welcome to follow a webcast presentation of
the results today at 08:00. The presentation will be held by CEO Nicolay Moulin
and CFO Camilla Aardal.
The presentation will be followed by a Q&A session, and viewers are encouraged
to submit written questions during and after the presentation through the
webcast player.
Webcast link:
https://channel.royalcast.com/hegnarmedia/#!/hegnarmedia/20230511_16
The report and presentation are available for download from
https://sikrigroup.com/reports-and-presentations and www.newsweb.no.
The webcast will be available for replay immediately after the live stream is
concluded.
For further queries, please contact:
Nicolay Moulin
Chief Executive Officer
Tel: +47 90 59 19 83
Email: Nicolay.moulin@sikri.no
Camilla Aardal
Chief Financial Officer
Tel: +47 97 10 51 55
Email: Camilla.aardal@sikri.no
About Sikri Group ASA
Sikri Group is a software house providing highly specialized software and
services towards the public sector and a leading company within property data,
property technology and data economics in the Nordics. Our customer base spans
public sector as well as private businesses within real estate, banking,
insurance, property developers, media companies, builders, property owners,
taxation companies, engineers, power companies and building materials
production. We create value for public sector, private businesses, and citizens,
with an innovative approach to the use of data and data analysis. Our ambition
is to build the leading Nordic ecosystem for public administration, property
technology, analysis and data.