Axentia Group AB (publ) Interim report Q3 2024

Comments from the CEO

Axentia’s core business with transport authorities (i.e.  sale, installation, operation and service of real-time displays for public transport) saw good progress during the quarter with an increasing share of recurring SaaS incomes and a strengthened gross margin. Total income was somewhat lower than the last year, following a large one-off deal of alarm systems for nuclear power plants in 2023.

After a rather hesitant summer, partly related to postponed deals, Axentia experienced a positive development on the order side at the end of the quarter, when Axentia received a larger order from Storstockholms Lokaltrafik (“SL”). This was the first order related to the framework agreement Axentia signed during the second quarter with Region Stockholm for continued collaboration on digital traffic information with real-time displays and text-to-speech with low power supply. It is reassuring to have the opportunity to continue the long-term co-operation with SL and to introduce the next generation of real-time displays to further increase the attractiveness of public transport.

The period was also characterized by intensive tendering work, where many of the tenders have been targeted by the major transport authorities in Europe. There is often a positive side effect on the smaller transport authorities when the larger cities procure advanced information systems for public transport.

It has also been a relatively intensive period with many exhibitions and fairs. The largest and most important trade fair for Axentia in the quarter was InnoTrans in Berlin, a trade fair that takes place every two years and is an internationally leading trade fair for transport technology with 170,000 visitors from 133 countries.

Our outlook continues to be positive, with an increasing number of transport authorities investing in information systems for public transport, which is accentuated by the phasing out of 2G and 3G networks, which is creating increased pressure on transport authorities to invest in newer technology solutions. However, Axentia experiences a tendency towards larger tenders, often linked to the larger cities, where the processes are binary and tend to be postponed. The company experienced positive momentum where a highly strategic framework agreement in Paris, was won after the end of the quarter. A framework agreement is not a guarantee for volume orders, but it puts Axentia in a strong position and we look with confidence at future tender processes. As the market grows, we are also noticing increasing competition, which is why it is important to continuously develop our offering to customers. 

For further information, please contact:
Johanna Klint (CFO)
E-mail: jk@axentia.se
Phone: +46 (0)760-63 24 57

Dick Ollas, Managing Director
E-mail: do@axentia.se
Phone: +46 (0)13 32 85 30

This disclosure contains information that Axentia Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on November 26.

About Axentia
Axentia is a Swedish company and a global supplier of real-time displays with low power consumption for public transport. We create opportunities for both society and people to develop – with cost-effective, sustainable products and system solutions. For more information, visit www.axentia.se.