NNIT A/S: POSITIVE MOMENTUM CONTINUES. NNIT CONFIRMS FULL-YEAR FINANCIAL OUTLOOK

NNIT A/S

Wed, Nov 8, 2023, 10:56 PM 3 min read

The positive trajectory from the first half of 2023 continued through the third quarter. The improvement of performance is in line with the upgraded guidance provided in August and emphasizes the positive direction set with the new strategy.
Solid revenue growth of 19% to DKK 453m compared to Q3 2022 driven by more business with existing customers and new logos.
The group operating profit before special items increased to DKK 26m, equal to a group operating profit margin of 5.8%. The margin expansion of 5%-points compared with same quarter last year is due to improved business performance leveraging a lower cost base.
The 2023 financial outlook for revenue growth of around 15% and group operating profit margin excl. special items of around 6% is unchanged.

On September 18, NNIT hosted a capital markets day elaborating on its new strategic direction and financial aspirations towards 2026. For the period 2024-2026, the aspiration is to generate a compound annual organic growth rate of around 10% and to deliver a yearly average group operating profit margin of around 10-13% excluding special items. The continued solid performance in the third quarter is a result of a “more focused” NNIT. We will improve business performance across regions by increasing utilization, expansion of engagements, new customers, and stronger focus on profitability. With the new strategy and regional organizational structure, NNIT continues to focus on enhancing global coordination and leveraging synergies across regions.

P?r Fors, President and CEO of NNIT, says: “Q3 is the first full quarter after the launch of the new strategy, and we are really pleased to see a continued positive development in our business performance, revenue and profitability. This further supports that we are on the right track with our new strategic direction, and we remain fully focused on delivering in accordance with our guidance and longer-term aspirations.”

Financial overview - selected key figures

NNIT A/S, DKK million	Q3 2023	Q3 2022	9M 2023	9M 2022	FY 2022
Revenue	453	380	1,290	1,104	1,500
Revenue growth, %	19.1%	n/a	16.8%	n/a	n/a
Revenue growth, organic %	11.1%	n/a	11.3%	n/a	n/a
Group operating profit excl. special items	26	3	72	-31	-6
Group operating profit margin excl. special items, %	5.8%	0.8%	5.6%	-2.8%	-0.4%
Special items	16	51	61	155	278
Group operating profit incl. special items	10	-48	11	-186	-285
Depreciation, amortization and impairment	7	11	27	50	64