Mintra Holding Q3 results: Strong new sales and operational performance
12 / 11 / 2020
Highlights for the third quarter of 2020 o Strong new sales growth. Newly won sales are up 40% compared to Q3 2019. Most of these new sales are contractual over multiple periods and these revenues will be gradually recognised in the income statement over the whole contract period.
New sales bring the percentage of revenues that are contracted and recurring up to 98% compared to 88% in 2019.
o Solid revenues. Booked revenue of NOK 49.3 million vs NOK 55.2 million in Q3 2019. However, 2019 revenues included low-margin pass-through Training Management Service (TMS) business, which the company exited in Q1 2020. Some revenue streams expected in Q3 2020 were postponed due to COVID-19-related restrictions but there is likely to be some catch-up in the future.
o Continued growth in Asia-Pacific. The sales team in Asia-Pacific has been strengthened with the addition of two (2) senior salespeople. During Q3 the Company had significant new sales to customers in Malaysia and Abu Dhabi.
o Improved operational efficiency. EBITDA margin of 24.4% vs 19.1% in Q3 2019 primarily driven by exit of low-margin TMS business and benefits form restructuring undertaken in 2019.
o Medium term ambitions remain on track. Despite near-term uncertainty as COVID-19 restrictions increase globally, Mintra sees a solid market outlook and maintains its medium-term ambitions for growth, margins and M&A activity.
o Subsequent event: Merkur market listing. On 5th October 2020 Mintra was admitted to the Merkur Market trading facility on the Oslo Stock Exchange, having raised NOK 500 million through issuance of primary shares. Part of the proceeds were used to reduce debt by NOK 276 million while the balance is expected to be used to accelerate organic growth and execute the Group's M&A plan and for general corporate purposes. Following the placement, Mintra is well-funded and well-positioned to pursue growth ambitions.
CEO Scott Kerr comments:
"Operations in the third quarter were defined by strong growth in new sales. We have won new and significant contracts with large clients in Europe, the Middle East and the Far East.
We also maintained good progress in building and rolling out the new marketplaces while strengthening our sales team to deliver on our ambitions. Q3 is historically a quarter that is impacted by summer holidays in Europe. The lower activity translates into reduced billing hours in content and consulting.
This year we are very pleased with robust revenues despite travel and work restrictions imposed by various governments due to the pandemic. We have seen strong sales growth from Q3 2019 and now head into a historically stronger Q4.
Going forward, we will continue to improve efficiency and operations and I strongly believe we are better positioned than ever to take advantage of growth opportunities.
We are looking forward to the time ahead, and the Mintra team remains confident that our offering is ideally placed for a post-COVID-19 business environment."
Presentation of third quarter 2020 results:
Mintra Holding AS will present its third quarter 2020 results, followed by a Q&A session, on Thursday, November 12, 2020, at 08:30 CET. Due to the unfortunate COVID-19 situation and the government's recommendation to limit physical meetings, the presentation will be held as a webcast.
The webcast will be held by CEO, Scott Kerr, and CFO, Ian Mackie. The presentation and subsequent Q&A will be held in English.
Participation: Participation will be possible via the following link:
Material: The third quarter report and presentation will also be made available on https://www.mintragroup.com/about-mintra/investor-relations and www.newsweb.no.
In addition, a recorded version of the presentation will be made available on:
https://www.mintragroup.com/about-mintra/investor-relations approximately two hours after the broadcast has concluded.
For further information please contact:
Scott Kerr, CEO, Mintra Group +47 99 28 38 90 Ian Mackie, CFO, Mintra Group +44 1224 651340
Mintra Holding AS is the Norwegian registered parent of several operating companies in Norway, United Kingdom, United Arab Emirates and Singapore, which comprise the Mintra Group, a leading provider of on-demand digital learning and enterprise HCM software solutions for safety-critical industries worldwide.
Mintra's focus is to protect and improve businesses by protecting and improving their people.
From the headquarters in Bergen and offices in Oslo, Stavanger, Aberdeen, UAE, India and Singapore, Mintra provide services to 3,600 companies. For over 30 years Mintra products have helped customers with HR, planning, payroll, crew rotation and e-learning across industries as diverse as energy, maritime, construction, fishing and wind energy.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.