• 2% organic growth (ABG -2%), adj. EBITA +8% vs ABG (-16% y-o-y)
• Service revenues declined more than expected, some soft cloud KPI's
• Small positive revisions, share up slightly

Q1 details

Sales SEK 1,216m (4% vs ABG 1,165m, no cons). Adj. EBITA 79m (8% vs ABG 73m), Adj. EBITA margin 6.5% (ABG 6.3%). Organic growth 2% (vs ABG -2%), of which system sales grew 8% (ABG -5%) and services -6% (ABG 1%). Adj. EBITA -16% y-o-y (ABG -23%) on a tough comp. OCF at SEK 55m (104m in Q1’24) down due to the earnings decline y-o-y.

Nordics & Baltics only region that grew

Nordics & Baltcis was the strongest region in the quarter, and a solid start to the year. Proact comments on positive demand across Europe despite macro, as customers need to digitalise, strengthen cybersecurity and increase the use of AI. However, we view the decline in service revenues, esprecially cloud order intake and revenue down y-o-y, as a weak KPI and the comments on customer churn in West and Central in this quarter is also not encouraging.

Small positive revisions likely

Small positive estimate changes of 3-5% most likely, although weak consulting revenues in the quarter could hold back Q1 beat extrapolation ahead. Share up slightly today. Conf call at CET 9.30.