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Introduction & Market Context
Witted Megacorp Oyj (WITTED) released its H1 2025 financial results on August 19, 2025, revealing a 5.6% year-over-year revenue decline while simultaneously announcing strategic initiatives including a new AI & Data subsidiary. The company’s stock currently trades at €1.57, down 0.96% following the presentation.
The results presentation highlighted both challenges and opportunities as the Finnish IT services company navigates a transitional period, maintaining a strong balance sheet while acknowledging the need for profitability improvements.
Quarterly Performance Highlights
Witted Megacorp reported a revenue decrease to €27.0 million for the first half of 2025, down 5.6% from €28.6 million in the comparable period of 2024. Profitability metrics also declined, with adjusted EBITA falling to €0.5 million (1.7% of revenue) from €0.9 million (3.0% of revenue) a year earlier.
As shown in the following key figures slide, EBITA operating profit decreased to €0.2 million, representing just 0.7% of revenue compared to 1.8% in H1 2024:
The detailed financial results provide a more comprehensive view of the company’s performance across multiple metrics, including the slight deterioration in earnings per share to -€0.03 from -€0.01 in the previous year:
Detailed Financial Analysis
A quarterly breakdown of key performance indicators reveals the trajectory of Witted’s business over the past six quarters. This data shows fluctuations in revenue and profitability metrics, with the most recent quarter (Q2 2025) demonstrating some of the challenges the company currently faces:
Despite the overall revenue decline, Witted Megacorp maintained a robust balance sheet with zero interest-bearing debt. Cash and bank assets stood at €5.9 million, slightly down from €6.4 million in the comparable period. The company’s equity ratio improved marginally to 55.6% from 55.4%, while the net gearing ratio remained strongly negative at -44.2%.
The following slide details the company’s solid financial position:
Strategic Initiatives
A key highlight from the presentation was Witted Megacorp’s announcement of a new AI & Data subsidiary, signaling the company’s strategic pivot toward high-growth technology segments. This move aligns with broader industry trends as companies increasingly invest in artificial intelligence capabilities.
Simultaneously, the company reported that its expert headcount had turned positive, with over 20 new professionals added during the review period. The total number of experts reached 339 at the end of H1 2025, slightly up from 337 a year earlier. The number of subcontractors also increased to 249 from 241.
The title slide of the presentation encapsulates these dual narratives of revenue challenges alongside strategic repositioning:
Forward-Looking Statements
Looking ahead, Witted Megacorp outlined ambitious strategic financial targets for 2025-2027, aiming for a 20% compound annual organic growth rate and improved adjusted EBITA margin over the strategy period. These targets represent a significant acceleration from current performance and will likely require successful execution of the company’s strategic initiatives, including the new AI & Data subsidiary.
The company also acknowledged that there is "work to be done" in improving profitability, suggesting management is aware of the challenges ahead while maintaining confidence in their strategic direction.
Witted Megacorp’s stock has traded in a 52-week range of €1.15 to €1.79, with the current price of €1.57 positioning it in the upper half of this range despite the recent financial results. Investors appear to be balancing near-term performance concerns with the company’s long-term strategic positioning and strong balance sheet.
Full presentation:
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