Q3 2020 financial report: 18% revenue growth & increased profitability

Wirtek has just published the interim financial report for Q3 2020 on Nasdaq Copenhagen. 

Financial highlights for the period January 1 – September 30, 2020

Strong performance continues during Q3 2020

Despite the global COVID-19 pandemic, which has negatively impacted some of our clients, we can present solid growth in both revenue and profits during Q3. The level of activity for our clients is back on track after the postponement of a couple of client projects during Q2.  

• Revenue grew by 18% to TDKK 6.921 during Q3 2020 compared to Q3 2019 and was up 23% to TDKK 20.577 for the period Q1 – Q3 2020 compared to Q1 – Q3 2019.
• EBITDA was TDKK 787 in Q3 2020 compared to TDKK 124 for the same period last year. During Q1 – Q3 2020 EBITDA grew by 193% to TDKK 2.441 compared to Q1 – Q3 2019.
• An EBITDA-margin of 11,9% for Q1 – Q3 2020, compared to only 5,0% during same period 2019, attests to our strong performance this far during 2020.
• Pre-tax profit (EBT) grew to TDKK 764 in Q3 2020 compared to TDKK 56 during Q3 2019 and was up by 234% to TDKK 2.316 during Q1 – Q3 2020 compared to same period last year.
• Cash holdings are very solid, at TDKK 4.117 end of Q3 2020, up 218% from Q3 2019.

Outlook 2020 - expectations raised in September

• Revenue expectations for 2020 narrowed to MDKK 27 - 28, a growth of 16% - 21% compared to 2019.
• Pre-tax profit expectations for 2020 raised to MDKK 2,4 - 2,7 (up from previously raised expectations of MDKK 1,9 - 2,2), a growth of 79% - 101% compared to 2019.
• Main reasons for raised expectations:
  • COVID-19 did not impact Wirtek negatively during Q3 and is not expected to do so during the remaining part of 2020.
  • A new order from one of our US clients during September has positive impact on both revenue and profit in 2020.
  • Close-to-optimal capacity utilisation in our Romanian subsidiary.

The full interim financial report is available for download. 

About Wirtek

Wirtek is a Danish IT outsourcing company. Since 2001, we have been teaming up with companies to help them create great software solutions and electronic equipment products.

Several clients have been with us for 10+ years, so we can confidently say that in outsourcing, the quality of the relationship matters just as much as the quality of the delivered software. Our clients get state-of-the-art technical solutions and a committed team that works with them as if it were their own.

Wirtek has offices in Denmark (HQ + sales) and three development and test centres in Romania, and we are 100+ colleagues. Wirtek was listed at Nasdaq First North Growth Market Denmark in 2006.