Netcompany: Solid quarter suggests guidance upside - Nordea

Netcompany had a solid start to 2023, including a 3% beat to company-compiled EBITDA consensus. All divisions excluding Denmark delivered 20%-plus revenue growth y/y. The group reported healthy 13.7% organic revenue growth, above the full-year guidance of 8-12%, which suggests potential for a guidance upgrade. Importantly, Intrasoft's EBITA improved 83% y/y. For Danish operations, revenue growth was more modest, at 6% y/y, owing to a combination of FTE redundancies not being billable and a 3% revenue decline owing to the signing of several private-sector projects being delayed. After the Q1 report, our combined DCF and peer group valuation range is unchanged at DKK 400-460 per share. We increase our estimates for revenue, operational costs and depreciation slightly and continue to believe that Netcompany will exceed its FY EBITDA guidance. Marketing material commissioned by Netcompany.