ZetaDisplay’s interim report January-June 2019 can be summarised by a strong increase in contracted services, investment in the organisation and two new global agreements.
April – June 2019
Net sales increased by 7 % to SEK 97.4 (90.8) million
Contracted services (recurring) increased by 48% to SEK 32.5 (22.0) million
EBITDA amounted to SEK 9.6 (11.0) million
Operating profit was SEK 3.3 (6.6) million
Earnings per share before and after dilution amounted to SEK -0.04 (0.04) and SEK -0.04 (0.04)
January – June 2019
Net sales increased by 22% to SEK 190.8 (155.8) million
Contracted services (recurring) increased by 49% to SEK 64.1 (43.1) million
EBITDA amounted to SEK 17.8 (17.9) million
Operating profit was SEK 5.2 (9.1) million
Earnings per share before and after dilution amounted to SEK -0.14 (-0.20) and SEK -0.14 (-0.20)
Significant events during the quarter
ZetaDisplay has signed a global Digital Signage Framework Agreement with Ingka Group, the world’s largest furniture retailer. The contract is commencing on July 1, 2019. The contract includes IKEA stores and offices operated by Ingka Group.
Per Mandorf was appointed as new President and CEO. Leif Liljebrunn will assume a new role as Vice President Merger & Acquisitions in ZetaDisplay. Per Mandorf takes up his new position on September 1, 2019.
The annual general meeting appointed three new board members, who add increased software experience. ZetaDisplay has signed a five-year global Framework Agreement with the Norwegian furniture group Ekornes AS.
Sales increased by 7% in the quarter and amounted to SEK 97.4 (90.8) million. Gross profit increased by SEK 6.8 million to 52.4 (45.6), an increase corresponding to 15%. The group’s operating profit amounted to SEK 3.3 (6.6) million. Contracted services increased by 48% to SEK 32.5 (22.0) million.
Contracted services are rising in all their verticals and adjusted for acquisitions, these increased by 35% compared to the same period last year. Also in relation to turnover, the proportion of services has increased, which explains the strengthening of the gross margin.
The agreement with Ingka Group, the world’s largest furniture company, is a milestone for the group’s development. The framework agreement covers deliveries to IKEA stores and offices all over the world and comprises hardware, installation, software, operations and services. The agreement commenced on July 1, 2019 and runs for five years.