B3 Consulting Group: Margins holding up better than peers so far - ABG

• We lower '23e-'25e adj. EBITA by 11-10%
• Likely to be more cautious on net recruitment
• '23e EV/EBITA of ~9x

Takeaways from the report and the webcast
The Q2 EBITA and margin declines y-o-y came as no surprise, as the IT consulting market faced both difficult comps and lower demand from clients. B3 delivered sales growth of ~3% y-o-y thanks to FTE growth and price increases. However, the y-o-y EBITA decline of 36% and the margin decline of 360bp were primarily driven by a drop in the utilisation rate, which was in turn due to lower demand. All segments experienced a margin decline, but we note that the Cloud & Technology Platforms segment held up the best.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/14e469bc9a0a428dbf9face038c376c4/pdf/margins-holding-up-better-than-peers-so-far.pdf