Vitec AB $VIT B (-0,39%) 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.