Netcompany – Interim report for the three months ended 31 March 2025

Company announcement
No. 13/2025

                                                                                                                                1 May 2025

Growth and margin improvement in a continued challenging market

Summary

• In Q1 2025, Netcompany grew revenue by 9.1% (constant 9%) to DKK 1,744.3m.
• Adjusted EBITDA increased by 24.4% (constant 25%) to DKK 307.3m in Q1 2025.
• Adjusted EBITDA margin was 17.6% in Q1 2025 (constant 17.7%) compared to 15.5% in Q1 2024.
• Diluted earnings per share increased by 36.9% to DKK 2.56.
• Average workforce increased by 342 FTEs to 8,150 FTEs in Q1 2025 from 7,808 FTEs in Q1 2024.
• Free cash flow increased to DKK 67.9m in Q1 2025 from negative DKK 4.9m in Q1 2024.
• Cash conversion ratio (tax normalised) was 83.3% in Q1 2025.
• Debt leverage improved to 1.2x in Q1 2025 from 1.6x in Q1 2024.
  

“The Group continued the growth momentum from last year and grew revenue by 9.1% in Q1 2025. At the same time, we increased our margin by more than two percentage points to 17.6%. Our growth is built on the continued focus on our products and platforms – a proven foundation for our future growth within Netcompany.

During Q1, we announced the merger with SDC into a newly formed entity – Netcompany Banking Services. The transaction is still on schedule to be completed around mid-year.

At the end of Q1 2025, we employed more than 8,150 talented people and mainly grew in the international part of the Group.

Irrespective of the increased geopolitical turmoil and the high level of uncertainty we reiterate our full year financial expectations of revenue growth of 5% to 10% and an adjusted EBITDA margin of between 16% and 19%.

We believe that Europe is in a unique position to strengthen itself in these uncertain times and we take pride in being a mission critical provider of world leading digitalisation services and solutions supporting governments and enterprises throughout Europe.”

André Rogaczewski
Netcompany CEO and Co-founder

Financial overview
For full details on financial performance, see enclosed Company announcement Q1 2025.

Conference details
In connection with the publication of the results for Q1 2025, Netcompany will host a conference call on 1 May 2025 at 11.00 CEST.

The conference call will be held in English and can be followed live via the company’s website; www.netcompany.com

Dial-in details for investors and analysts
DK: +45 7876 8490
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 598046

Webcast Player URL: https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-three-months-of-2025

Additional information
For additional information, please contact:

Netcompany Group A/S
Thomas Johansen, CFO, + 45 51 19 32 24
Frederikke Linde, Head of IR, +45 60 62 60 87