Press Releases

Enea Interim Report January-September 2022

Third Quarter

  • Net sales amounted to SEK 229.3 million (229.5), which was flat compared to same period previous year. Net sales decreased by 8 percent in fixed exchange rates.
  • Adjusted EBITDA amounted to SEK 85.4 million (91.6), corresponding to a margin of 37.3 percent (39.9).
  • Operating profit was SEK 41.0 million (42.9), corresponding to an operating margin of 17.9 percent (18.7).
  • Net profit after tax amounted to SEK 36.6 million (45.6).
  • Earnings per share were SEK 2.42 (2.33).
  • Earnings per share continued operations were SEK 1.69 (2.11).

The period January – September

  • Net sales amounted to SEK 656.7 million (610.9), equivalent to a 7 percent increase. Net sales increased by 1 percent in fixed exchange rates.
  • Adjusted EBITDA amounted to SEK 212.3 million (248.3), corresponding to a margin of 32.3 percent (40.6).
  • Operating profit was SEK 60.3 million (140.3), corresponding to an operating margin of 9.2 percent (23.0).
  • Net profit after tax amounted to SEK 69.8 million (133.0).
  • Earnings per share were SEK 8.61 (6.76).
  • Earnings per share continued operations were SEK 3.24 (6.17).

Significant Events During and After the End of the Quarter

  • On August 12, Enea announced a three-year expansion agreement for mobile messaging security with a North American Communication Platform-as-a-Service (CPaaS) provider. Software licenses worth USD 1.8 million are recognized in the third quarter of 2022, while remaining revenues will be recognized over the full contract period. The total deal value is USD 5.9 million.
  • On September 30, Enea announced a contract for 5G traffic management with a North American mobile network operator. The solution is based on Enea´s new 5G Service Engine (5G-SE), which was launched to the market in July. Software licenses corresponding to a value of CAD 3.3 million are recognized in the third quarter of 2022, while remaining parts of the agreement are delivered during the next three years. The total contract value is CAD 4.4 million.

CEO’s Statement

New deals in cybersecurity, traffic management and 5G, plus an increase in recurring revenues, contributed to higher net sales and operating profit than earlier quarters this year.

The third quarter 2022 was clearly better than previous quarters this year, with higher net sales, an improved operating margin, increased operating profit and strong cash flow from operations. Network Solutions achieved organic growth of 4 percent, thanks to new license deals and increased recurring revenues. We’re now clearly seeing our 5G investments pay off, this time with a major deal in North America. Further, our new business unit, AdaptiveMobile Security, is continuing to win cybersecurity contracts. Net sales in the quarter were SEK 229 million, and our operating profit was SEK 41 million, equivalent to an operating margin of 18 percent. Currency effects had a positive impact on profit, largely due to a high revenue share in USD. Cash flow from operating activities was SEK 92 million, and our earnings per share (EPS) were SEK 2.42, including SEK 0.73 from our Services business, which was divested earlier in the year.

Customers in North America are still prioritizing and investing in security, rollouts of 5G, the adoption of new cloud platforms and network performance enhancements. We have business relationships with many of the largest network operators in Canada, Mexico, and the USA, and are consolidating our sales resources in this region. We have good potential for more cross sales of our product portfolio, i.e., sales of new products through established account relationships and under existing framework agreements. In other regions, we’re seeing the market being slowed by a worsening macroeconomic situation with higher inflation, rising interest rates and increased energy prices. In turn, this is causing deferrals of major investments, such as the build-out of 5G core networks.

Telecom network security remains a major issue for public authorities and service providers. In August, we won a contract at a major North American CPaaS provider (communication platform as a service), securing our market leading status in messaging security, and helping the continued progress of our business unit AdaptiveMobile Security. American mobile operators and service providers use our software and expertise to prevent 40-50 million fraud attempts every day through malicious and unwanted text messages. Total traffic volume is increasing, and thanks to strong positioning on the market, we see the potential to grow our global sales in messaging security.

Enea launched the service platform 5G Service Engine (5G-SE) in July—a new solution, and the market’s first to support traffic management and video optimization of both 4G and 5G traffic. As early as September, we signed our first contract with a North American mobile operator, who will deploy this product to enhance QoS for subscribers, increase the data speed of mobile traffic and reduce radio network loading. This deal is a major boost to our license revenue, and means our business relationship with this key customer is expanding. Traffic management is part of Network Solutions, that made slow progress in recent quarters due to project delays and a reduced willingness to invest. However, increased operating expenses in mobile networks may present new business opportunities, because video traffic optimization helps reduce energy consumption in telecom operator datacenters and radio equipment.


The market for data management in 5G and advanced cybersecurity is in an early phase, where we can challenge established competitors and win market shares with innovative products and new business models. Our ambition is to increase revenues briskly, while maintaining good profitability, through organic growth in Network Solutions plus complementary strategic acquisitions that advance our market positioning.

Individual deals and licensing revenues may cause variations in revenues between individual quarters. This effect has increased as Network Solutions represent a larger share of our total net sales. Our long-term target of sales growth and an operating profit above 20 percent remains, but an uncertain macro environment and a weak start to the year means that we judge it challenging to reach our profitability target for 2022.

The full Interim Report is attached to this press release and has been published on the Enea website (see references below).


Enea is pleased to invite investors, analysts, and media to a presentation of the Interim Report. The presentation will be conducted in English by Jan Häglund, President and Chief Executive Officer, and Ola Burmark, Chief Financial Officer, and will be concluded by a questions and answer session. It can be attended through a webcast or conference call and the presentation material as well as a recording of the presentation will be published on the Enea website (see details and references below).




Ola Burmark, Chief Financial Officer

Phone: +46 8 507 140 00
E-mail: [email protected]

About Enea

Enea is a world-leading specialist in software for telecom and cybersecurity. The company’s cloud-native solutions connect, optimize, and secure services for mobile subscribers, enterprises, and the Internet of Things. More than 100 communication service providers and 4.5 billion people rely on Enea technologies every day.

Enea has strengthened its product portfolio and global market position by integrating a number of acquisitions, including Qosmos, Openwave Mobility, Aptilo Networks, and AdaptiveMobile Security.

Enea is headquartered in Stockholm, Sweden, and is listed on Nasdaq Stockholm.

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