Business Review of Digitalist Group Plc 1st January – 30th

Digitalist Group Plc stock market release 28/10/2022 at 9:00 am

Digitalist Group Plc Business Review, 1st January – 30th September 2022

SUMMARY

July – September 2022 (comparative values ​​for 2021 in brackets):

  • Sales: EUR 3.9 million (EUR 3.9 million), increase: 0.4%.
  • EBITDA: EUR -0.6 million (EUR 0.5 million*), -15.7% of sales (13.2%).
  • EBIT: EUR -1.1 million (EUR -0.0 million**), -29.1% of sales (-0.7%).
  • Net profit for the year: EUR -1.8 million (EUR -0.4 million*), -46.7% of sales (-9.8%).
  • Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00*).

*) EBIT, EBITDA and net income for the comparative period were impacted by a EUR 1.3 million gain recorded on the Ticknovate stock transaction

January-September 2022 (comparative values ​​for 2021 in brackets):

  • Sales: EUR 14.3 million (EUR 13.5 million), increase: 6.2%.
  • EBITDA: EUR -2.0 million (EUR -1.3 million*), -14.1% of sales (-9.7%).
  • EBIT: EUR -3.4 million (EUR -3.5 million**), -24.0% of sales (-25.7%).
  • Net profit for the year: EUR -5.0 million (EUR -3.9 million**), -34.8% of sales (-29.0%).
  • Earnings per share (diluted and undiluted): EUR -0.01 (EUR -0.01**).
  • Number of employees at the end of the reporting period: 159 (160), down 0.6%.

*) EBIT, EBITDA and net income of the comparative period were impacted by a posted gain of EUR 1.3 million from the Ticknovate share transaction.**) EBIT and net income of the comparative period were also impacted by an amortization of the company’s goodwill (-0 .5 million euros).

CEO’s review

Although our turnover for the period from January to September is EUR 14.3 million (EUR 13.5 million) above the same period of the previous year, after a weak start after the holiday period, EBITDA is far from satisfactory.

We see that the market turbulence in some of our businesses has led to a decrease in customer investments and we have not been able to adjust the cost structure quickly enough. We still need to work to balance the costs in these businesses. Further action needs to be taken to improve the way we work and organize our business. We will continue to reduce overhead and implement savings initiatives. However, increased sales are required to reach group profitability.

On the positive side, there are interesting growth opportunities in our LeanLab SaaS service as a customer collaboration platform for CX innovation, as well as in our FutureLab business in sustainable packaging development. In addition to our strong position in Sweden, we have now gained a foothold in Finland with our open source technology offering and started to attract customers in both the private and public sectors.

Digitalist Group has a long history of serving the public sector in Sweden and Finland. With a more cautious private sector, we are even more focused on attracting public sector clients as well. We are therefore pleased that we were able to conclude two new framework agreements with the city of Turku and the city of Helsinki in this quarter.

We have a lot of work ahead of us. The turnaround requires resilience and perseverance. I would like to thank our talented employees at all of our studios for their dedication to creating value for clients every day and their efforts in continuous improvement.

/Managing Director Magnus Leijonborg

FUTURE PROSPECTS

In 2022, revenue is expected to improve and EBITDA to decrease compared to 2021.

OTHER EVENTS IN THE THIRD QUARTER

Digitalist Group Plc lowered its earlier guidance on the future outlook

During the third quarter, Digitalist Group Plc revised its earlier guidance on future prospects. On September 22, 2022, the guidance was changed to:
In 2022, sales should improve and EBITDA should be at the same level compared to 2021.

The company’s previous guidance was:
In 2022, sales and EBITDA should improve compared to 2021.

The stock market announcements for the reporting period can be accessed on the company’s website at
www.digitalist.global/investors/releases.

EVENTS SINCE THE REPORT PERIOD

Digitalist Group Plc lowered its earlier guidance on the future outlook

On 26/10/2022, Digitalist Group Plc lowered its previous guidance on future prospects. The instructions have been changed to:
In 2022, revenue is expected to improve and EBITDA to decrease compared to 2021.

The company’s previous guidance was:
In 2022, sales should improve and EBITDA should be at the same level compared to 2021.

The stock exchange notifications after the reporting period can be accessed on the company’s website at
www.digitalist.global/investors/releases.

When the annual report was released, the company expected that its working capital would be sufficient to meet its needs over the next 12 months.

DIGITALIST GROUP OYJ
The board of directors

Additional information:
Digitalist Group Plc
Managing Director Magnus Leijonborg, Tel. +46 76 315 8422, [email protected]
CEO Esa Matikainen, Tel. +358 40 506 0080, [email protected]

Distribution:
Nasdaq Helsinki Ltd
Big Media
https://digitalist.global

  • Digitalist Group Business Review Q3 2022

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