Norway's StrongPoint Q2 revenue falls 2% on ESL partner loss
Norway's StrongPoint Q2 revenue falls 2% on ESL partner loss
Overview
Norway grocery retail tech firm's Q2 revenue declined 2% yr/yr to NOK 342 mln
EBITDA for Q2 fell to NOK 5 mln, including NOK 4 mln in one-off costs
Nordic markets revenue dropped 22% due to loss of former ESL partner
Outlook
Company expects profitable growth in the US market following recent breakthrough
StrongPoint says recurring revenue stream with new partner Vusion will take time to build
Company plans to continue internal efficiency and right-sizing its cost base
Result Drivers
ESL PARTNER LOSS - Revenue and recurring revenue declined due to the end of contributions from the former Electronic Shelf Label partner
COST BASE IMPROVEMENT - EBITDA decline was cushioned by an improved cost base, according to CEO Jacob Tveraabak
INTERNATIONAL GROWTH - International markets grew 15%, offsetting some declines in the Nordics
Company press release: ID:nObiMSbLpa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| NOK 342 mln |
|
Q2 Net Income |
| -NOK 8 mln |
|
Q2 Adjusted Free Cash Flow |
| NOK 49 mln |
|
Q2 EBIT |
| -NOK 6 mln |
|
Q2 EBITDA |
| NOK 5 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Strongpoint ASA is NOK25.00, about 138.1% above its July 9 closing price of NOK10.50
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)