Third Quarter 2022 Revenue Report

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The transition to a geographic rebalancing of income continues

  • The operational transition still underway in France
  • Dynamic growth of activities outside France

Confirmation of long-term prospects driven by excellent momentum outside France

  • Priority given to organic growth and maintaining a financial structure with little debt
  • Growth will accelerate in 2023 and profitability will improve in parallel
In millions of euros 9 months Q3
2022 2021 % change 2022 2021 % change
Total 656.8 653.5 +0.5% 212.4 212.1 +0.1%
Of France 318.6 391.8 -18.7% 96.7 121.5 -20.4%
From Benelux 152.1 114.2 +33.2% 53.6 39.3 +36.5%
From other countries 186.1 147.5 +26.2% 62.1 51.3 +21.0%

55% of the group’s turnover generated outside France

Consolidated turnover

In the third quarter of 2022, Solutions 30 achieved consolidated revenue of €212.4 million, up 0.1% compared to the same period of 2021 (-2.4% on an organic basis).

In line with previous quarters, the performance of France continues to be impacted by the operational transition linked to the maturity of certain markets. Elsewhere in Europe, activities are developing rapidly with the deployment of fiber optic networks which is beginning in most of the countries where Solutions 30 operates.

Over the first nine months of 2022, the consolidated revenue of Solutions 30 amounted to 656.8 million euros, up +0.5% (-1.8% on an organic basis).

Revenue by region

France: In the third quarter of 2022, Solutions 30 achieved a turnover of 96.7 million euros, down 20.4% compared to the third quarter of 2021.

With €68.9 million in revenue, telecom activity was down 20.0% compared to the third quarter of 2021. This drop in activity reflects the maturity of the market after the record levels of activity observed during of the COVID crisis, which have accelerated the deployment of fast ultra-high speed in France. The industry as a whole – customers but also service providers and subcontractors – has been forced to adapt and adjust to new modes of cooperation and to a temporary lack of visibility induced by macroeconomic uncertainties. Consequently, the operational conditions for the execution of contracts have deteriorated sharply in recent months and have been aggravated by the current inflationary situation.

This has implications for the entire industry and price renegotiations are underway. In this context, Solutions 30 is continuing its operational transition by relying on its strong competitive advantages: a diversified portfolio of customers and activities, a healthy financial structure with little debt and an agile organization.

Revenue from the energy business amounted to 11.5 million euros compared to 19.7 million euros a year earlier. This 41.4% drop is due to the end of the deployment of smart electricity meters in France (activity down 79.6%). Even though revenue from the new energy transition and e-mobility verticals is still suffering from supply chain disruptions, it grew by 31%. However, this growth is not yet offsetting the decline of the company’s historical verticals.

The IT activity posted a turnover of 11.2 million euros, stable compared to the third quarter of last year, while the security and payments activity was up by 12.9%, generating 5 .1 million euros in turnover, against 4.5 million euros a year earlier.

Over the first nine months of the year, sales fell by 18.7% to 318.6 million euros.

Benelux: Third-quarter 2022 revenue amounted to €53.6 million versus €39.3 million a year earlier, representing pure organic growth of 36.5% and reflecting the excellent momentum Belgian and Dutch markets.

Growth in the telecom business accelerated thanks to the rapid ramp-up of contracts signed with Fiberklaar, Open Dutch Fiber and Unifiber. Revenue from fiber activities alone was multiplied by 4.5 during the quarter, increasing the telecoms business by 40.1% and generating quarterly revenue of 40.3 million euros compared to 28 .8 million euros a year earlier.

For the energy business, revenue amounted to 9.5 million euros compared to 6.6 million euros a year earlier, representing purely organic growth of 43.0%, thanks to the deployment of meters intelligent in Flanders on behalf of Fluvius.

Quarterly revenue from IT activity remained stable at 2.1 million euros, while revenue from distribution and security activities amounted to 1.7 million euros, compared to 1 .8 million euros in the third quarter of 2021.

Over the first nine months of 2022, revenue increased by 33.2% to 152.1 million euros, compared to 114.2 million euros a year earlier.

In all other countries, the group achieved quarterly revenue of €62.1 million, up 21.0% (organic growth of 10.4%) compared to the same period in 2021.

In Germany, turnover returned to growth and increased by 7% to €16.2 million against €15.1 million a year earlier. As expected, the efforts made by the group to adapt its organization, as well as the updating of the pricing conditions of certain major contracts, are beginning to bear fruit.

In Italy, revenue increased by 19% in the third quarter of 2022 to 14.8 million euros, driven by the continued deployment of ultra-fast infrastructure by TIM in Piedmont and the Aosta Valley, which began in the first quarter of 2021.

On the Iberian Peninsula, revenue increased by 8% to €14.4 million, thanks to positive momentum in the telecommunications sector (fiber and 5th generation mobile networks), strong growth in the installation of charging stations for electric vehicles and price increases obtained from several customers.

In Poland, the group achieved a turnover of 7.9 million euros, up 35% (organic growth of 23%). Solutions 30 continues to gain market share in this country, while the integration of Sirtel into the 5G networks business portfolio is progressing well. The organization put in place will ensure the company’s ability to support the growth of its customers. The mobile networks business is growing rapidly and now represents nearly 10% of revenue.

Lastly, in the United Kingdom, Solutions 30 achieved revenue of €8.8 million over the quarter, up 92% (-11% on an organic basis). Solutions 30 has streamlined its operations to focus on higher-potential markets and the diversification of its services into fiber optic networks, while the integration of Mono’s operations continues.

In all these countries, the group generated revenue of €186.1 million in the first nine months of 2022, up 26.2% (15.8% organically) compared to the first nine months. month of 2021.

Outlook

In response to the current inflationary pressure, Solutions 30 is increasing its prices, both on new contracts and on existing contracts. The group has also taken measures to strictly control operating expenses in order to preserve a solid financial structure with little debt. Such a structure will protect its ability to finance its growth through acquisitions, increase its agility, strengthen its competitive advantages and preserve its future ability to continue consolidating its sector.

In France, the market is in transition, leading to limited short-term visibility. In this context, Solutions 30 will continue its action plan to return to growth and a more normal level of profitability. This plan consists of (i) gaining market share in the mature telecom sector where a second phase of consolidation should take place; (ii) develop new high-growth activities, particularly in the energy sector where demand remains strong, driven by the major challenges of energy independence, the transition to new energies and the electrification of vehicles ; and (iii) the search for synergies between the various trades, accompanied by a reassignment of technicians to trades with the greatest potential.

In the Benelux and in the other countries, growth will remain strong until the end of the year, with the same dynamic as in the third quarter.

For the group as a whole, the fourth quarter trend should be in line with the first nine months of the year and 2022 revenue should remain at the same levels as in 2021. The increase in the EBITDA margin in end of year is subject to ongoing price negotiations.

From 2023, Solutions 30 should return to more dynamic growth, driven by the dynamic development of its activities outside France. It should also see an overall improvement in its profitability. The group has solid growth drivers and an effective model for self-financing its development, which will enable it to consolidate its position at the crossroads of digital transformation and energy transition.

Future event

2022 Fourth Quarter Revenue and 2022 Full Year Revenue Reports | January 26, 2022

About Solutions 30 SE

The Solutions 30 group is the European leader in solutions for new technologies. Its mission is to make accessible to everyone, individuals and businesses, the technological developments that are transforming our daily lives. Yesterday was IT and the Internet. Today is digital technology. Tomorrow will be technologies that will make the world even more interconnected in real time. With more than 50 million interventions carried out since its creation and a network of more than 15,000 local technicians, Solutions 30 today covers all of France, Italy, Germany, the Netherlands, Belgium, Luxembourg, the Iberian Peninsula, the United Kingdom, and Poland. The share capital of Solutions 30 SE is made up of 107,127,984 shares, equal to the theoretical number of exercisable votes.
Solutions 30 SE is listed on Euronext Paris (ISIN FR0013379484- code S30). Indices: MSCI Europe ex-UK Small Cap | SBF 120 | CAC Middle 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 – [email protected]

Analysts/Investors:
Nathalie Boumendil – Tel: +33 6 85 82 41 95 – [email protected]

Press – Image 7:
Charlotte Le Barbier – Tel: +33 6 78 37 27 60 – [email protected]
Leslie Jung – Tel: +33 6 78 70 05 55 – [email protected]

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