Witted Megacorp

The IT service sector's revenue organically returned to a downward trend, and profitability improved in Q1. Differences between companies deepened.

Vi ser aktietilbagekøbsprogrammet som en fornuftig kapitalallokering.

Selskabets demonstrerede strukturelle rentabilitetsforbedring i 1. kvartal og den gode organiske væksttrend kombineret med en lav værdiansættelse skaber efter vores mening et attraktivt indgangspunkt for aktien.

Selskabets Q1 regnskab var klart bedre end vores forventninger.

Vi forventer en gradvis styrkelse af den organiske vækst og rentabiliteten.

In Finland, revenue growth picked up towards the end of the year, surpassing that of the other Nordic countries for the first time in a long while.

Vi mener, at tilbagekøb af egne aktier er en fornuftig kapitalallokering på grund af aktiens lave værdiansættelse.

The Q4 earnings season in the IT services sector showed positive signs for the first time in a long while.

Den organiske vækst i februar var bedre end forventet, og antallet af specialister udviklede sig som forventet.

Witteds Q4 var et skridt i den rigtige retning, men antallet af specialister ved årets start levede ikke op til vores forventninger.

Omsætningen vendte til organisk vækst, men lå lidt under vores forventninger, og effektiviseringstiltag løftede den justerede EBITA til 0,33 MEUR.

Omsætningen forventes at vende tilbage til organisk vækst for første gang siden Q1'23, og vi forventer en bedre rentabilitet end i slutningen af sidste år og begyndelsen af indeværende år.

Teemu Tiilikainen vender tilbage som selskabets CFO fra sin stilling som landechef i Finland, en rolle, der ikke vil blive erstattet.

The IT service sector's Q3 earnings season began with cautious optimism, as the market looked for signs of a gradual turnaround in the IT service market. Unfortunately, the sentiment remained mostly cautious.

In the rest of the Nordic countries, organic revenue development turned downward and profitability weakened in Q2. Thus, even applying the Rule of 20, the situation in the IT services market remains distinctly challenging, with only one company achieving good performance and two achieving satisfactory performance.

The IT service sector entered the Q2 earnings season in a cautious mood, albeit with expectations of a turnaround. In reality, however, the situation deteriorated even further, with revenue falling more than before and beyond our expectations and profitability remaining at a very low level.

The IT services sector's Q1 earnings season was still approached with a cautious mood, but this time the reason was Trump's tariff threats. Possible tariffs would not directly hit the IT services sector, but they would certainly have an indirect impact through customer caution.

We expect the performance of the IT service sector to improve as a whole in 2025. This year, as the market decline presumably stabilizes/turns back to growth, we should be able to see which companies have adapted to the changing market situation and whose strategy is working.

We examined Nordic, listed IT service companies with the 'Rule of 20' metric we launched, measured with which a few companies achieved excellent performance in 2024. On average, Finnish IT service companies fared worse last year than other Nordic companies. Overall, however, it can be said that 2024 was still challenging throughout the Nordics.