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Net Insight: Beat on sales and EBIT; starts buybacks - ABG

EBIT of SEK 11.8m (+80% vs. ABGSCe)
Initiates buy-backs
Conf call at 09:30 CET

Q3'21 report: Sales SEK 100.8m (+17% vs ABGSC 85.8m), EBITDA SEK 15.2m (-25% vs ABGSC 20.3m), EBIT SEK 11.8m (+80% vs ABGSC 6.6m), Net profit SEK 10.1m (+132% vs ABGSC 4.4m). NETI delivered a report with strong growth and high profitability. FX adjusted sales growth of 34.1% is well above its long-term target of at least 10% average organic growth, and the same goes for the EBIT margin of 11.7% in Q3. We expected a continued turnaround this quarter, but not of this magnitude. According to management, all regions contributed to the growth in the quarter.

The strong financial performance is accompanied by its breakthrough order in 5G synchronisation announced last week, and an announced buy-back programme starting on November 11th where the company will repurchase a maximum of 16m shares (~4% of total shares) until May 13th, 2022. We view positively on the fact that management is taking action to create shareholder value, and we think the buy-backs will be appreciated by the market.
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