Norway's Webstep Q2 revenue falls on lower headcount, project roll-offs
Norway's Webstep Q2 revenue falls on lower headcount, project roll-offs
Overview
Norway IT consultancy's Q2 revenue fell 11% yr/yr due to lower headcount and project roll-offs
Q2 EBIT margin narrowed to 7.3% from 8.9% as profitability was hit by reduced scale
Operational cash flow turned negative on seasonal settlements and changed tax schedules
Outlook
Webstep expects market conditions to remain moderate in the near term, with continued pricing pressure
Company does not expect significant immediate demand recovery
Webstep says focus on client relationships and cost control positions it to improve performance as market evolves
Result Drivers
LOWER HEADCOUNT & COMPETITION - Co said revenue decline was primarily driven by lower headcount, increased public sector competition, and project roll-offs/client changes
UTILISATION & PUBLIC SECTOR SPENDING - Co said utilisation and profitability were negatively impacted by reduced scale and public sector spending constraints, particularly in Oslo
HIGHER HOURLY RATES - Hourly rates increased above the consumer price index, reflecting commercial discipline and recognized client value
Company press release: ID:nMFN1hlkVz
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| NOK 190.40 mln |
|
Q2 EBIT |
| NOK 13.90 mln |
|
Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the it services & consulting peer group is "buy"
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
Aug 19 - Norway's Bouvet Q2 revenue rises slightly on new contracts
Aug 17 - Switzerland's Trifork Q2 revenue rises on Products segment growth, reiterates 2026 outlook
Aug 18 - Norway's Multiconsult Q2 operating revenue rises on higher billing rates
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(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.)