Netcompany publishes Interim report for the six months ended 30 June 2020

In Q2 2020, Netcompany has continued to grow revenue as planned, increasing margins and welcoming no less than 230 new employees.

In Q2 2020, Netcompany realised reported revenue of DKK 675.5m, of which DKK 654.5m was organic. In constant currencies growth was 15.1% of which 13.7% was organic.

Adjusted EBITA grew by 27.9% to DKK 161.3m compared to DKK 126.1m in Q2 2019, corresponding to an adjusted EBITA margin of 23.9%.

The average number of full-time employees grew by 404 from 2,259 in Q2 2019 to 2.663 in Q2 2020. Part of the increase was related to the acquisition of Netcompany Netherlands, which affected the average FTEs in Q2 2020 by 98 compared to 47 in Q2 2019.

Free cash flow remained strong and added another DKK 103m to the cash position bringing the total amount of cash and cash equivalents above DKK 300m which was more than double the amount compared to the end of Q2 2019.

Netcompany expects to pay out dividend of between DKK 50 - 100m for the full year 2020.

By the start of July 2020, revenue visibility increased by 18% to DKK 2,483.6m compared to DKK 2,105.5m at the beginning of July 2019, of which DKK 1,371.1m reflects realised revenue in the first half of 2020.

For 2020, Netcompany maintains its expectations to organic revenue growth in constant currencies to be around 18% -20% and the expectations to non-organic revenue growth to be around 1%. Netcompany still expects Group adjusted EBITA margin in constant currencies to be around 26%.

In light of the COVID-19 pandemic, we underline that our assumptions behind our guidance are significantly more uncertain than normal.  

During these unprecedented times, we continued to follow our initial growth plans for the year and realised more than 15% growth for the Group in the second quarter of 2020, accompanied by strong cash flow and increasing margins.

During Q2, we have delivered a number of large projects, most notably the social pension solution in Denmark. We continue to bid for – and win – larger complex solutions in all the countries where we are active, which lays the foundation for our continued growth.

Despite the uncertainty in all of our markets, we have welcomed more than 230 new employees in Q2, which I am truly proud of." André Rogaczewski, CEO and Co-founder

Performance highlights for Q2 2020

  • Revenue increased by 13.9% (15.1% constant), of which 12.5% came from organic growth, to DKK 675.5m in reported currencies.
  • Gross profit margin was 38.4% against 37.6% in Q2 2019.
  • Adjusted EBITA increased 27.9% and yielded a margin of 23.9%.
  • Net result increased by more than 55%.
  • Free cash flow was DKK 103.1m and total cash and cash equivalents increased to more than DKK 300m.
  • Normalised cash conversion rate of 65.4%.
  • Debt leverage to 12 months rolling Adjusted EBITA below 1.

For additional information, please contact:

Media Relations
Ask Christian Riis +45 5040 8511

Interim report Q2 2020


About Netcompany

Netcompany was founded in 2000 and has its headquarters in Copenhagen Denmark. Today, we are an international company with more than 7000 employees working from 17 countries. We serve a wide array of customers in their digital transformation journeys in public and private sectors across Europe.

Media enquiries Karen Clement Head of PR & Communications +45 4090 9241