2023 Q2 Revenue Report
- Revenue for the second quarter of 2023 up +18.8% to
€263.4 million, accelerating compared to the first
quarter
- Revenue for the first six months of 2023 up +16.7% to
€518.7 million
- Confirmation of the group’s excellent momentum in the Benelux
and “Other Countries”
- Confirmation of double-digit growth, the group expects to
surpass the symbolic €1 billion milestone by the end of
2023
- Confirmation of long-term outlook for sustained growth
|
In millions of euros |
H1 |
Q2 |
|
2023 |
2022 |
% change |
2023 |
2022 |
% change |
|
Total |
518.7 |
444.4 |
+16.7% |
263.4 |
221.7 |
+18.8% |
|
From France |
199.4 |
221.9 |
-10.1% |
97.8 |
105.2 |
-7.1% |
|
From Benelux |
179.9 |
98.5 |
+82.7% |
97.1 |
51.8 |
+87.7% |
|
From Other Countries |
139.3 |
124.0 |
+12.3% |
68.5 |
64.8 |
+5.8% |
62% of group revenue generated outside
of France
Consolidated revenue
Growth accelerated during the second quarter of
2023, with consolidated revenue of €263.4 million,
representing an exclusively organic increase of 18.8% compared to
the same period in 2022.
Solutions 30’s consolidated half-year
revenue for 2023 amounted to €518.7 million, up +16.7%
(+16.65% on an organic basis).
This excellent performance was driven by
particularly robust growth in the Benelux, Poland, and the United
Kingdom. It puts the group on target to exceed the symbolic
milestone of €1 billion in revenue before the end of 2023.
Revenue by region
In France, second-quarter
revenue in 2023 amounted to €97.8 million compared to
€105.2 million a year earlier, a more modest decline when
comparing with the first quarter.
Connectivity Solutions generated revenue of
€69.7 million, down 7% compared to the second quarter of 2022,
as the market overall remains under pressure. The group has gained
market share with its biggest customer, and as expected, revenue
from this service provider is growing. However, this increase has
not compensated for the overall slowdown in this market segment.
Furthermore, the price reductions applied by some customers in 2022
have only been partially offset by negotiating price increases to
adjust for inflation.
The market now seems to be stabilizing with a
volume of between 800,000 and 900,000 new subscribers per quarter,
down compared to 2021 when this business peaked during the pandemic
(950,000 to 1,150,000 new subscribers per quarter). The number of
fiber subscribers reached 19 million by the end of
March 2023, out of 34 million premises currently eligible
for fiber.
Revenue from Energy Solutions amounted to
€9.8 million compared to €12.9 million the previous year,
down 24%. This business remains impacted by the end of smart meter
deployments in France, which only contributed revenue of
€1.8 million over the period. The deployment pace of new
activities—mainly related to B2B2C renewable energies and electric
mobility—is still irregular which is typical during the start-up
phase, as customers adjust their business model and operational
processes. This has overshadowed the otherwise good performance of
the B2B photovoltaic business. Efforts to strengthen the group’s
ability to execute in this sector and to expand its offerings are
bearing fruit, as shown by the upward trajectory of both sales and
invoicing. The acquisition of ELEC ENR announced today is strategic
for Solutions30 as it will give the group total coverage of France
and a base of operations in the northeast. This part of the country
is experiencing strong growth in the deployment of photovoltaic
power plants, given the availability and accessibility of land.
ELEC ENR’s recognized operational capabilities and quality
management chain helped it reach €5.6 million in revenue by
the end of 2022, in a region where Solutions30 has already signed
€10 million worth of projects.
Finally, Technology Solutions posted revenue of
€18.3 million, up 4% over the quarter, driven by the increase
in payment solution and security system installations, as well as
related maintenance.
Over the first six months of the year, revenue
in France is down 10.1% to €199.4 million.
In the Benelux, revenue in the
second quarter of 2023 amounted to €97.1 million compared to
€51.8 million a year earlier, representing organic growth of
87.7%.
Revenue from Connectivity Solutions more than
doubled to reach €77.8 million during the quarter, compared to
€37.4 million in the second quarter of 2022. This very strong
growth is essentially due to the rapid roll-out of fiber optics
across the country and the group’s ability to keep up with much
faster installation schedules than anticipated.
Revenue from Energy Solutions was up 43% to
€14.6 million, compared with €10.2 million a year
earlier. This business is driven by the ongoing deployment of smart
meters in Flanders and the start of new contracts related to new
energies, electric mobility, and smart grids.
Lastly, Technology Solutions posted revenue of
€4.7 million, up 14%.
Over the entire first half of 2023, revenue rose
by 82.7% to €179.9 million.
In all other countries, the
group posted quarterly revenue of €68.5 million, compared to
€64.8 million a year earlier, representing purely organic
growth of 5.8%.
In Germany, revenue amounted to
€14.5 million compared to €15.1 million a year earlier.
Fiber-optic deployments are expected to start in the second half of
the year.
In Italy, revenue amounted to €17.1 million
in the second quarter of 2023, compared to €18.4 million one
year earlier. The conditions under which ultra-fast broadband
infrastructure deployments are being executed have deteriorated in
recent months due to the national service provider’s recurring
operational difficulties. The entire sector has been affected, and
Solutions30 has decided to slow down the pace of call-outs until
the situation returns to normal and a more efficient way of
operating has been found, in agreement with its various
partners.
On the Iberian Peninsula, revenue amounted to
€14.3 million compared to €14.5 million a year earlier.
This market is generally stable, and the group is reorganizing its
offering to focus on its most profitable businesses.
In Poland, revenue amounted to €12.2 million, up
an impressive 51%. The country continues to benefit from market
share gains, in both fixed and mobile networks.
Finally, in the United Kingdom, Solutions30
posted quarterly revenue of €10.5 million, up 21%, reflecting
FTTH deployments in Greater London.
In all these countries, the group posted revenue
of €139.3 million for the first half of 2023, an increase of
12.3% (12.25% organic growth) compared to the first half of
2022.
Outlook
The solid performance of the first six months
confirms the group’s objective of double-digit growth in 2023 and
that it is on target to exceed €1 billion in revenue before
the end of the year.
Meanwhile, the group continues to work on
improving its margins, the effects of which will become apparent
during the first half of the year. In France, operational and
organizational efforts to restore margins and improve conditions
for certain telecoms contracts are beginning to bear fruit. In the
Benelux, strong growth and rapid ramp-ups could temporarily weigh
on the EBITDA margin (EBITDA/Revenue), but this margin will remain
above 10%. Lastly, the situation in Italy will have an impact on
EBITDA margins for other countries in the first half of the year,
but the group-wide impact will be limited. In this context, the
group confirms that its margins will gradually improve throughout
the year, with a significantly higher consolidated EBITDA margin
for the first half of the year compared with the second half of
2022.
The group intends to pursue its strategy of
focusing on organic growth to achieve a critical mass everywhere it
operates, while working to improve profitability. The group will
leverage the scale effects it expects from its booming markets,
returning to dynamic and profitable growth over the long term. As
illustrated by the acquisition of ELEC ENR, the group is open to
external growth opportunities that will expand its coverage or
complement its expertise in high-potential markets.
Upcoming event
2023 HY Earnings
Report
September 21, 2023
About Solutions30
SE
The Solutions30 group is the European leader in
solutions for new technologies. Its mission is to make the
technological developments that are transforming our daily lives
accessible to everyone, individuals and businesses alike.
Yesterday, it was computers and the Internet. Today, it’s digital
technology. Tomorrow, it will be technologies that make the world
even more interconnected in real time. With more than
65 million call-outs carried out since it was founded and a
network of more than 15,000 local technicians, Solutions30
currently covers all of France, Italy, Germany, the Netherlands,
Belgium, Luxembourg, the Iberian Peninsula, the United Kingdom, and
Poland. The share capital of Solutions30 SE consists of
107,127,984 shares, equal to the number of theoretical votes
that can be exercised.Solutions30 SE is listed on the Euronext
Paris exchange (ISIN FR0013379484- code S30). Indexes: MSCI Europe
ex-UK Small Cap | SBF 120 | CAC Mid 60 | NEXT 150 | CAC
Technology | CAC PME. Visit our website for more information:
www.solutions30.com
Contact
Individual Shareholders:Investor Relations -
Tel: +33 1 86 86 00 63 - shareholders@solutions30.com
Analysts/Investors:Nathalie Boumendil - Tel: +33
6 85 82 41 95 - nathalie.boumendil@solutions30.com
Press - Image 7:Charlotte Le Barbier - Tel:
+33 6 78 37 27 60 - clebarbier@image7.frLeslie Jung - Tel: +33 6 78
70 05 55 - ljung@image7.fr
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