Webstep ASA reports modest growth in Q2

On Tuesday, Webstep ASA announced its financial results for the second quarter of 2024, reporting a revenue increase of 3.5% to NOK 258.3 million, up from NOK 249.5 million in the same period last year. 

The company's earnings before interest and taxes (EBIT) also saw a rise of 7.4%, reaching NOK 18.9 million, compared to NOK 17.6 million reported in the second quarter of the previous year. This improvement translated into an EBIT margin of 7.3%, slightly up from 7.1%.

The Norwegian technology company also reported that following the sale of its Swedish operations, which was finalized in July, the remaining Norwegian business experienced an 8.0% revenue increase to NOK 229.5 million. The EBIT margin for the Norwegian sector improved, climbing to 8.3% from 7.8% in the corresponding quarter of the previous year.

Kristine Lund, CEO of Webstep, commented on the company's performance, stating, "Webstep made significant progress in the second quarter. We continued to grow our revenues, we continued to deliver on our cost reduction program announced last year, and we entered into an agreement to divest our Swedish operation. We firmly believe that streamlining the organisation will support growth and profitability both in the short and medium term."

The strategic move to divest the Swedish branch has contributed to Webstep's stronger financial position. The Board of Directors is looking to utilize the improved cash flow by proposing to allocate approximately half of the surplus cash to repurchase the company's own shares in the Fall of 2024. The remaining funds are slated for distribution as an extra dividend to shareholders in the Spring of 2025.

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Source: Investing.com