HELSINKI, April 26, 2018 /PRNewswire/ -- Solteq Plc Stock Exchange Bulletin 26.4.2018 at 8.00 am

Profitability improved significantly

Brief look at January – March 2018

• Revenue totalled 14.9 million euros (13.1 million euros).
• EBITDA was 1,924 thousand euros (662 thousand euros).
• The adjusted EBITDA was 1,910 thousand euros (1,495 thousand euros).
• Operating profit was 1,305 thousand euros (178 thousand euros).
• The adjusted operating profit was 1,291 thousand euros (1,011 thousand euros).
• Solteq Group's equity ratio was 32.9% (34.2%).
• Earnings per share was 0,04 euros (-0,02 euros).
• The comparable revenue grew 14 percent higher compared to Q1 last year. Acquisitions completed in 2017 were the main driver for growth.
• The company´s profitability improved significantly, and the adjusted operating profit was the best in the recent history.
• We invest strongly in future growth by focusing on the development of our own cloud-based software products and services. We estimate that this year's product development investments will amount to EUR 2.0 million.

Key figures and ratios

 The company has taken the IFRS 15 standard into use on 1 January 2018 retroactively and the comparison figures for 2017 have been adjusted.

Olli Väätäinen, CEO of Solteq: Profitability improved significantly

The adjusted operating profit was the best in the recent history. Profit development was driven by the measures taken in the previous financial year to improve profitability. The company's adjusted EBITDA for the first quarter was EUR 1.9 million and the adjusted operating profit was EUR 1.3 million.

A particularly positive development was the 14 percent increase in the comparable revenue. The drivers of this growth were mainly the acquisitions executed in 2017. Last year's investments in expanding our services to new sectors and to all Nordic countries bore fruit. The company's business operations in the Nordic countries proceeded as expected in the first months of the year. During the first quarter, nearly one fifth of the company's revenue originated from outside Finland.

In the previous financial year, we made the strategic decision to invest in growing the revenue from our own cloud-based software products and SaaS. At that time, we estimated that revenue from continuous services revenue from the above-mentioned operations would rise to one fourth of the annual revenue in 2018. In the first quarter, continuous services accounted for more than one third of the company's revenue.

We invest strongly in future growth by focusing on the development of our own cloud-based software products and services. We have been especially active in areas that enable us to incorporate artificial intelligence and robotics into our products and services. In addition, we will continue the development of the software products and software services that we have acquired through corporate acquisitions. These focus mainly on the optimization of industry-independent digital service solutions and online customer experience as well as services related to online customer services and customer data management in the energy sector. We estimate that this year's product development investments will grow to EUR 2.0 million.

At the end of the quarter, the company's number of personnel exceeded 550 employees. Our operations are strongly based on the expertise and competencies of Solteqians. The company's personnel increased by 71 employees during the first quarter, of which half came from an acquisition made.

Our reported revenue, EUR 14,9 million, has been calculated using IFRS 15 standard principles. The standard is related to the handling of pass-through revenue and the calculation principle was changed as of the beginning of the financial year. Our comparable revenue during the review period amounted to EUR 13,1 million.

The business outlook remains good and the company's profitability is expected to continue to develop positively.

Guidance on Group outlook

Solteq Group's adjusted operating profit is expected to grow significantly compared to the financial year 2017.

Further information

Olli Väätäinen
CEO
tel. +358-50-5578-111

Martti Nurminen
CFO
tel. +358-40-751-7194

DISTRIBUTION
NASDAQ OMX Helsinki
Major media
www.solteq.com

Solteq in brief

Solteq is a Nordic industry-independent IT provider and software house that specialises in digital business solutions. Our mission is to simplify the digital world to make a better tomorrow. We are a partner who knows what it takes to win in digital disruption, regardless of our customer's industry. Our over 550 experts, who work in five countries, develop and implement solutions for clients mainly in the Nordic countries.

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http://news.cision.com/solteq/r/solteq-plc-interim-report-1-january---31-march-2018,c2505424

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