Original-Research: Swissnet AG (von Quirin Privatbank Kapitalmarktgeschäft):...

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Original-Research: Swissnet AG - from Quirin Privatbank Kapitalmarktgeschäft

26.05.2025 / 19:10 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of Quirin Privatbank Kapitalmarktgeschäft to Swissnet AG

Company Name: Swissnet AG

ISIN: CH0451123589

Reason for the research: Update

Recommendation: Buy

from: 26.05.2025

Target price: 21

Last rating change:

Analyst: Sebastian Droste

Strong results & new contract wins

On May 26, swissnet released its preliminary full-year results for 2024.

Reported revenue growth was strong and slightly better than expected.

Revenues rose by 112% yoy to EUR 13.1m. On a like-for-like pro forma basis,

which includes the acquired entities as if they had been consolidated for

the full year, revenue grew by 25% yoy to EUR 21m. The revenue development

was supported by a high share of recurring revenues (77%). Also, major

contract wins such as a EUR 1.2m IoT deal with Philip Morris International

and a EUR 6.2m infrastructure modernization contract with a European

drugstore chain have a positive effect. EBITDA improved from EUR -0.4m to

EUR 2.5m, in line with our estimate. This was driven by operating leverage

and recurring revenues. On a pro forma basis, EBITDA amounted to EUR 4.4m.

The company also reported positive free cash flow of EUR 2.6m, EUR 4.4m in

cash and EUR 11.0m in equity. We consider the investment case to be intact

due to the profitable M&A activity, growing recurring revenue base, and

international expansion. We raise our target price to EUR 21 and confirm our

Buy recommendation.

You can download the research here: http://www.more-ir.de/d/32730.pdf

For additional information visit our website:

https://research.quirinprivatbank.de/

Contact for questions:

Quirin Privatbank AG

Institutionelles Research

Schillerstraße 20

60313 Frankfurt am Main

research@quirinprivatbank.de

https://research.quirinprivatbank.de/

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2145764 26.05.2025 CET/CEST

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