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View All NewsSweden – Wise Group second-quarter revenue flat, EBITDA sinks
Wise Group (WISE:SS), the Swedish staffing firm published preliminary results on Friday for the second quarter ending 30 June 2019 of SEK 240.4 million (€22.4 million), no change compared with the same quarter last year.
| (SEK millions) | Q2 2019 | Q2 2018 | Change | Q2 2019 (€ millions) |
| Revenue | 240.4 | 240.4 | 0.0% | 22.4 |
| EBITDA | 12.9 | 16.6 | -21.9% | 1.2 |
| Operating Profit | 3.4 | 13.3 | -74.3% | 0.3 |
| Profit for the Period | 2.2 | 10.3 | -78.6% | 0.2 |
Operating income includes depreciation of SEK 2.3 million (€0.2 million) for intangible fixed assets attributable to acquisitions.
In the first quarter the group said it was restructuring its subsidiary Edge HR AB while its results during the first quarter were hit with expansion costs and the development of a technical platform in subsidiary Brilliant Future AB. In the second quarter the company said it was continuing to invest in the development of these two subsidiaries.
Ingrid Höög, CEO of Wise Group, commented, “In summary, the work in the second quarter was characterised by the decisions that were taken and initiatives that were initiated during the first quarter. The focus in the group has been on service development, increased market presence and increased productivity.”
During the period, Wise Group AB's Board of Directors decided to appoint a new Board of Directors in subsidiary Brilliant Future AB and initiate a capital raising process in the subsidiary.
Revenue by segment
| (SEK millions) | Q2 2019 | Q2 2018 | Change | Q2 2019 (€ millions) |
| Recruitment and Consultancy | 148.1 | 150.8 | -1.8% | 13.8 |
| HR Consulting & Leadership Development | 51.0 | 47.3 | 7.7% | 4.7 |
| Digital HR Services | 41.3 | 42.2 | -2.2% | 3.8 |
The company reported lower sales during the second quarter in its Recruitment and Consultancy division. The company said ‘many customers are awaiting purchase decisions’ which was one of the reasons for the lower sales.
The Digital HR Services segment was impacted by the restructuring of Edge HR in the first quarter and costs associated with Brilliant Future.
Revenue by Geography
| (SEK millions) | Q2 2019 | Q2 2018 | Change | Q2 2019 (€ millions) |
| Sweden | 233.3 | 233.4 | 0.0% | 21.8 |
| Finland | 7.0 | 6.9 | 1.2% | 0.6 |
Wise Group also published results for the six months ended 30 June 2019 of SEK 484.6 million, up 3.6% compared to the corresponding period last year.
Looking ahead Höög said the company expects improved profitability towards the end of the year, but marginal growth and weak profitability as a whole for the year 2019.
In trading on Friday Wise Group shares closed at SEK 37.00 (€3.46), down 5.1% on the day. Based on its current share price the company has a market value of SEK 275.67 million (€25.7 million).