Stable development in revenues and profit continuing
It is a great pleasure to once again present a record quarter for the company. This excellent profit development means that we have made significant progress towards our 5 %, profit before tax, target margin.
Profit before tax for the second quarter amounted to SEK 34.4 million, representing an increase of 36 % compared with the corresponding period last year. This means that the company’s margin, profit before tax, amounts to 4.7 %. The excellent development in profits has been achieved thanks to two primary reasons. Firstly, a structured and driven approach to operational efficiency and delivering higher quality customer service utilising the strength and depth of the group. Secondly, a greater focus on the go to market around services has resulted in higher revenues and greater profitability in this area of this business.
I can state that our specialist expertise and market-leading offering are appreciated by customers old and new alike. The company’s total revenues developed well during the quarter and amounted to SEK737 million, representing an increase of 8 % compared to the same period last year. It is pleasing to see that total revenues for service operations have developed positively and amounted to SEK 261 million, representing an increase of 16 %. Service revenues relating to cloud services amounted to SEK 91 million, representing an increase of 25 %. System revenues also developed well and amounted to SEK 475 million, representing an increase of 4 %.
The daily focus is to develop the company according to our established strategy. Part of our strategy involves working as “One Proact”. This involves using well-defined processes and procedures to cre-ate a consistent, cost-effective organisation, thereby ensuring that we have a clear, high-quality offering to the market. To improve profitability, another part of our strategy involves increasing the percent-age of contracted revenues. We will achieve this by further reinforcing the company’s offering and the way we are operating, mainly within the field of support and cloud services. Another element of our strategy involves increasing revenues in respect of datacentres, with associated consultancy and sup-port services. We have successfully implemented a number of customer projects in the above fields during the quarter. Examples of projects implemented can be found in the section entitled “Events dur-ing the quarter”.
Overall, it is clear to me that internal initiatives implemented in fields such as innovation, sales and business streamlining are continuing to pay off, making us even more competitive. Our ability to help our customers to minimise risks and reduce costs, and also to supply flexible IT services and products, places us in a strong position on the European market, giving us good opportunities for continued pos-itive development in terms of both revenues and profits.