Both Growth And Uncertainty in EU Digital Signage Market: ZetaDisplay

May 31, 2023 by Dave Haynes

Getting a good read on what’s happening with digital signage businesses isn’t always easy because most of the solutions providers are private firms, so regulator-required reports from public companies tend to be intriguing, almost by default.

The Swedish firm ZetaDisplay has released its Q1 2023 financials, which suggest both growth and uncertainty in the European market.

Net sales amounted to SEK 119.6 (111.2) million. SaaS revenues amounted to SEK 50.0 (47.0) million and represented 41.8 % (42.2) of net sales. EBITDA was SEK 3.8 (5.4) million. Adjusted for non-recurring items, EBITDA amounted to SEK 10.1 (14.4) million.

Comments from CEO Per Mandorf:

Our first quarter was characterized by continued growth in an increasingly uncertain market. During the first quarter we have seen continued growth of international customer activity contrasted with certain emerging customer project delays. During the quarter, we worked intensively across the whole group with a focus on customer development and additional strengthening of our service and product range. Furthermore, we continue to invest in our software, operations and sales functions to support continued future growth, which impacted earnings in the short term. In the first quarter we have also successfully completed the re-financing of our Bond in the market.

The implementation of the Group’s strategic initiatives is proceeding according to plan and is strengthening our capabilities within the organization and towards customers. As a result, we see increased organizational efficiency and good opportunities taking shape in the medium term. At the same time, we’re noticing increased uncertainty in the short-term market conditions as well as some unplanned delays in customer projects. We continue to actively monitor market development and to manage costs diligently whilst prioritizing key investments for long-term growth.

ZetaDisplay is based in Malmö, Sweden, has a turnover of approximately SEK +500 million (about $46M USD) and employs 220 employees in offices in six EU countries. The company manages over 80,000 installations in more than 50 markets.

ZetaDisplay is owned by the British investment company Hanover Investors.