Zalaris Q1 Revenue Rises Slightly to NOK 372M

Q1 Financial Highlights

Zalaris ASA reported a modest first-quarter revenue increase to NOK 372 million, marking a 0.5% rise compared to the previous year. Despite the revenue growth, adjusted EBIT saw a decline to NOK 42 million from NOK 52 million in the same period last year, with reported EBIT at NOK 29.3 million.

Performance by Segment

The company's performance was mixed across its divisions. The Managed Services segment demonstrated strong growth, with revenue climbing 7.9%. Conversely, the Consulting division experienced a significant downturn, with activity falling 15% in local currency terms. Overall revenue of NOK 371.90 million did not meet the consensus estimate of NOK 405 million from analysts.

Future Revenue Outlook

Zalaris successfully secured new long-term HR and payroll contracts valued at NOK 75 million in annual recurring revenue. The company's CEO noted that this continued shift toward stable, recurring revenue streams was a key driver of its performance, providing a solid foundation for future growth despite challenges in the consulting sector.

Summary

Zalaris shows resilience through its expanding managed services division, though the decline in consulting revenue and the miss on earnings estimates pose challenges. The addition of new recurring revenue contracts will be vital for supporting future financial stability and offsetting segmental weakness.

FAQ

Q: What was Zalaris's total revenue for the first quarter?
A: Zalaris reported total revenue of NOK 372 million, a 0.5% increase year-over-year.

Q: Which business segment drove Zalaris's revenue growth?
A: The Managed Services segment drove growth with a 7.9% revenue increase, which offset a 15% decline in the Consulting segment.

Q: How much new annual recurring revenue did Zalaris secure in Q1?
A: The company signed new contracts totaling NOK 75 million in annual recurring revenue.

Source: Investing.com