Atea reported lower financial results in the second quarter of 2024, as shipments of networking equipment fell from abnormally high levels in Q2 last year.
Gross sales in Q2 2024 were NOK 14.7 billion, in line with last year. Revenue (IFRS) fell by 5.5% to NOK 8.4 billion. Currency fluctuations had a negative impact of 1.0% on revenue growth in Q2 2024.
Hardware revenue fell by 8.3% from last year. The entire decline was due to lower deliveries of networking equipment. Shipments of networking equipment were exceptionally high in Q2 last year due to an easing of supply constraints. Outside of the networking product category, hardware sales increased from last year.
Software revenue increased by 14.8% from last year, with strong growth in sales of cloud subscriptions. Services revenue was down 1.2% from last year, with lower demand for consultants.
Despite the decline from last year, the longer-term revenue growth trend remains intact. Over a two-year period since Q2 2022, total group revenue has grown at a rate of 5.1% per year (CAGR). During this time, hardware revenue has grown at a rate of 2.8% per year, software at 16.1% per year, and services at 9.3% per year.
EBIT in Q2 2024 fell by 16.6% to NOK 243 million, as gross profit fell by 0.5% to NOK 2,642 million and operating costs grew by 1.4% to NOK 2,399 million. The average number of full-time employees in Q2 2024 was 8,108, down 0.8% from last year.
Cash flow from operations was NOK 665 million, compared with NOK 340 million last year. The growth was driven by a large reduction in the working capital balance.
“While our results in the second quarter were below last year, we see clear signs of business improvement as we head into the second half of 2024,” commented Atea CEO Steinar Sønsteby. “Sales activity picked up during the second quarter, and we have a growing order backlog due to be delivered in the coming months. Demand for software is strong, and demand for hardware is improving. We expect a return to solid EBIT growth during the second half of the year, driven by higher sales and continued tight control of operating expenses.”
The interim report and presentation are available at:
www.atea.com/financial-reports/
A webcast of management's presentation of the financial results is available at:
www.atea.com/financial-reports/2024/webcast-q2-24/
For further information, please contact:
Steinar Sønsteby, CEO Atea ASA, mobile (+47) 930 55 655
Robert Giori, CFO Atea ASA, mobile (+47) 934 09 188
About Atea
Atea is the leading supplier of IT infrastructure in the Nordic and Baltic regions. Atea is present in 88 cities with over 8,000 employees in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia. Atea delivers hardware and software from leading global vendors, and provides consulting and technical services to support its customers with the design, implementation and operation of their IT environments. Atea had revenue of approximately NOK 35 billion (EUR 3.1 billion) in 2023 and is listed on Oslo Stock Exchange. www.atea.com