Vitec AB $VIT B (-0.82%) presented its earnings this morning.

"In both the short and medium term, Vitec is very limitedly affected by external factors"

-CEO Olle Backman

(mln sec)

Sales: 880 +23%

Share of recurring revenue: 89% +300bps

EBITA: 220 +-0%

EBITA margin: 25% -600bps

Operating profit: 153 +-0%

Operating margin: 17% -400bps

Net profit: 83 -3%

EPS: 2.09 -9%

Acquisitions: Intergrip B.V.

"The net of capitalized development costs, amortization and impairment on intangible fixed assets, and acquisition-related amortization had a negative effect on operating profit"

On the whole, Q1 was satisfactory. Although a decline in EPS is never nice to see, these are of a short-term nature. Recurring revenue continues to grow strongly at >20% which indicates a stable business environment. Vitec generates only about 7% of its revenues in the US, which should have a positive impact, especially in the short term.

OCT-DEC

• Net sales SEK 927 million +27%
• RR SEK 769 million +26%
• EBITA SEK 269 million +20%
• EBITA margin 29% -100bps
• Operating profit SEK 179 million +22%
• Operating margin 19% -100bps
• EPS 2.43 SEC +14%

JAN-DEC

• Net Sales SEK 3334 million +20% (+9% organic, +11% acquired)
• RR SEK 2878 million +23%
• EBITA SEK 1002 million +14%
• EBITA margin 30% -200bps
• Operating profit SEK 697 million +18%
• Operating margin 21% flat
• CFFO SEK 1041 million +41%
• EPS 10.74 SEC +19%
• Dividend increased from SEK 3.00 to SEK 3.60 (+20%)

Acquisitions

• LDC I-talent Solutions B.V.
• Bidtheatre AB
• Taxiteknik Nordic AB
• The Trinergy Group
• Olyslager Group B.V.
• Road Oy
• Figio Holding B.V.

Very strong earnings from Vitec $VIT B (-0.82%) I am very satisfied, the dividend increase is the cherry on the cake.