Proact Q3 revenues soar as UK system sales blossom

Third quarter revenues grew beyond expectation for the reseller, despite a decline in service sales

Swedish reseller Proact has seen revenues soar in the third quarter of 2024 thanks to its high-flying systems business.

Q3 revenues were up 6.3 per cent to SEK 1.13bn (£82m), compared to SEK 1.065bn in the same period last year.

EBIT grew 5.8 per cent year-on-year, from SEK 61.5m to SEK 65.5m.

Service revenues dipped 4.7 per cent to SEK 515.2m caused by lower revenues from consulting services and longer sales processes around cloud services.

System revenues meanwhile surged 17.6 per cent to SEK 615.6m in Q3 owing to continued demand for systems solutions.

As of today, services make up 45.5 per cent of Proact’s total revenue.

“Although the macroeconomic situation remains uncertain, we generally see increased demand in most of our markets, driven mainly by our customers continued need to digitalise their businesses, strengthen cybersecurity and increase the use of artificial intelligence,” said Jonas Hasselberg, CEO of Proact.

Based in Solda, Sweden, the reseller counts offices in the US and various European countries, including the UK.

UK back to systems growth

Former troublemaker with a 42 per cent slump in system revenues in Q4 2022 and a 24.2 per cent drop in 2023, the UK seems to have turned things around this year.

System revenues ballooned 39.3 per cent to SEK 78.3m in Q3, compared with SEK 56.2m last year.

Total UK revenues went up 8.9 per cent this quarter to earn SEK 170.4m.

Proact’s systems business saw growth in almost all regions, except for the Nordics & Baltics where it dipped 1.2 per cent.

Revenues in this arm exploded in Belgium and the Netherlands (West), rocketing 98.4 per cent, while Czech Republic and Germany (Central regions) jumped 68.6 per cent.

Dawn and dusk

Rome wasn’t built in a day, and neither were Proact’s systems revenues.

Three years ago, in Q3 2021, the company experienced a big dip in revenues, after sales sharply declined.

However, Proact is now seeing this segment bloom.

On the other hand, service revenues, once the reseller’s star child, have declined.

Service revenues did indeed slump by 8.1 per cent in the UK, driven by a shrinkage in support revenue, offset by growth in cloud and consulting services, compared to a stronger comparative quarter.

In other areas, such as West and Central, service revenues declined 4.4 per cent and 10.8 per cent respectively.

Only in the Nordics & Baltics (Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Sweden, and the US) did service revenues go up by 3.5 per cent.