Netcompany - Annual Report 2018

Summary

Netcompany realised revenue of DKK 2,053.2m in 2018, corresponding to a reported revenue growth of 45% and an organic revenue growth of 25.5%.

Adjusted EBITA grew by 27.9% to DKK 514.2m compared to DKK 402.0m in 2017, corresponding to an adjusted EBITA margin of 25%.

The average number of full-time employees grew by more than 600 from 1,256 during 2017 to 1,861 during 2018, driven by the continued growth in both Denmark and Norway, as well as the full inclusion of Netcompany UK.

At the beginning of 2019, revenue visibility for the full year increased by 33.8% to DKK 1,579.4m compared to DKK 1,180.0m at the beginning of 2018.

Free cash flow remained strong, and increased from DKK 307.3m in 2017 to DKK 391.3m in 2018, yielding a cash conversion ratio of 75.2% - in line with the level of 2017.

For 2019, Netcompany expects revenue in constant currencies in all geographies to grow between 20% and 25% and Group adjusted EBITA margin in constant currencies of around 26%.
 
"2018 has been a tremendous year for Netcompany where we passed a number of significant milestones. Revenue grew to above DKK 2 billion with operating profits growing to above half a billion DKK^1. We also welcomed more than 750 new employees during the year and in June we successfully entered the Copenhagen stock exchange as a true Unicorn in a successful IPO.

Looking back at 2018, I am immensely proud of our achievements made possible by all of our fantastic employees, and I look forward to the journey in 2019 and onwards."

André Rogaczewski, Netcompany CEO and Co-founder

^{1. Adjusted EBITA}

 
Performance highlights for Q4 2018

• Revenue increased by 22.5% to DKK 543.3m in reported currencies and by 22.4% in constant currencies.
• Organic revenue increased by 16.8% to DKK 517.8m from DKK 443.4m in Q4 2017.
• Adjusted EBITA margin was 24.1% in reported and constant currencies compared to 26.0% in reported currencies in Q4 2017. The UK operation impacted adjusted EBITA margin negatively by 4.0 percentage points in Q4 2018.
• Profit before tax increased by 50.5% to DKK 91.6m in reported currencies and by 50.2% in constant currencies.
• Revenue visibility for 2019 increased by 33.8% to DKK 1,579.4m compared to DKK 1,180.0m at the beginning of 2018.
• Free cash flow remained strong and increased from DKK 154.8m in Q4 2017 to DKK 163.6m in Q4 2018, yielding a cash conversion ratio of 116.9% compared to 127.4% in Q4 2017.

 
 
Financial overview

For full details on financial performance, see enclosed full company announcement 12 months ended 31 December 2018 and the Annual report for 2018.

Conference call details

In connection with the publication of the results for Q4 2018, Netcompany will host a conference call on 6 February 2019 at 10.00 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 32 72 80 42

UK: +44 (0) 2071 928000

Confirmation code: 2679057

Webcast Player URL: https://edge.media-server.com/m6/p/aszgxfjx

Additional information

André Rogazcewski, CEO +45 70 13 14 40

Thomas Johansen, CFO + 45 51 19 32 24

Attachments