Press Releases

Enea Interim Report January-September 2023

Third Quarter

  • Net sales amounted to SEK 215.7 million (229.3), equivalent to a 6 percent decrease. Net sales decreased by 10 percent compared to last year in fixed exchange rates.
  • Adjusted EBITDA amounted to SEK 72.5 million (85.4), corresponding to a margin of 33.6 percent (37.3).
  • Operating profit was SEK 15.7 million (41.0), corresponding to an operating margin of 7.3 percent (17.9).
  • Net profit after tax amounted to SEK 20.4 million (36.6).
  • Earnings per share were SEK 0.95 (2.42).
  • Earnings per share continued operations were SEK 0.95 (1.69).

January – September

  • Net sales amounted to SEK 671.2 million (656.7), equivalent to a 2 percent increase. Net sales decreased by 3 percent in fixed exchange rates.
  • Adjusted EBITDA amounted to SEK 215.7 million (212.3), corresponding to a margin of 32.1 percent (32.3).
  • Operating profit was SEK -542.5 million (60.3), corresponding to an operating margin of -80.8 percent (9.2).
  • Net profit after tax amounted to SEK -563.5 million (69.8).
  • Earnings per share were SEK -26.13 (8.61).
  • Earnings per share continued operations were SEK -26.13 (3.24).

CEO’s Statement

We want to develop Enea into a leading supplier of software for cyber security and telecoms. We want to be agile and dynamic, and challenge established competitors with open, innovative and robust solutions. Customer focus is crucial for us. Our customers should feel that they get the best support before, during and after a deal with us. At the same time, we want to create value for our shareholders. We therefore have a parallel focus on high profitability and strong cash flows. It feels important for me to repeat this because nothing else is more important for Enea, and thus also for me as CEO of Enea.

I re-entered as acting CEO of Enea on July 3 this year, with the clear ambition to implement the necessary efficiencies, focus on what works and what creates results, as well as to restore stability in the company's financial forecasts. This is exactly what we worked on during the third quarter.

The efficiencies deliver

Revenues during the third quarter amounted to SEK 216 million (229), which is slightly better than what we planned for when the quarter started and a 4 percent growth over the second quarter. We closed a major deal at the very beginning of the period and have since had good stability in business development during the quarter, with a number of smaller deals and a growing share of recurring revenue. It is positive. Of course, our long-term objective is to deliver growth compared to the same period last year, but we are not there today. It is quite clear, however, that we are now entering the fourth quarter with relatively good opportunities in all our business areas.

Even more positive is the strong EBITDA margin of 34 percent, which can be compared with 24 percent in the second quarter. It shows that the efficiencies in terms of product development and services in telecom that we announced at the beginning of the quarter have already had an effect, as promised. It also shows that our long-term goal of 35 percent is within reach.

Strong cash flows

The most positive thing in the quarter, however, is the cash flow. As a direct result of the write-downs we made on July 3rd, we are also reducing the capitalization of our development costs. These were SEK 17 million compared to SEK 34 million in the same period last year. This de-facto increases our operational cost, which burdens the result, and you therefore need to look at the cash flow to see the full effect of the write-downs and the efficiency improvements. All other things being equal, these measures improve our cash flow by approximately SEK 60 million per year. We can now partially see this already during the third quarter, where our operating cash flow amounted to SEK 108 million (92), which corresponds to SEK 13.1 per share. The total cash flow was SEK 50 million (36). Our cash at the end of the quarter was SEK 333 million (264) and our net debt was SEK 147 million (283). In other words, we have been able to implement the necessary operational measures, implement a buyback program of our own shares, and at the same time strengthen our financial position both compared to the second quarter and to the same period last year. Based on our strong financial position, the board has decided to continue with a corresponding buyback program during the fourth quarter, within the framework of the mandate given at the annual general meeting in May 2023.

AI and Cybersecurity

Cyber-attacks based on so-called phishing, social engineering, or malware will very likely become even more dangerous with the increasing use of artificial intelligence. It also applies to identity fraud, data breaches and distributed denial-of-service attacks. Those are some examples of observations in our latest report titled Artificial Intelligence in Cybersecurity. It is based on a global survey of 457 individuals in the cybersecurity industry. It shows that over the next two years, 68 percent expect a bigger budget for implementing artificial intelligence as part of their cybersecurity strategy, and 72 percent believe automation based on artificial intelligence will play a key role in alleviating shortages of cybersecurity staff and skills.

This makes our existing security offering even more relevant, while we launched a new cyber security offering during the quarter, Enea Qosmos Threat Detection SDK. It is a software development package that paves the way for a new way to prevent data breaches. The offering will enable us to target a new market segment with the potential for new revenue as well as further strengthen our position in cyber security. During the quarter, we have already signed the first contract for this new offer with a strategically important customer.

Future prospects

I judge that our market position is well established. We have a broad product portfolio, with a number of cutting-edge products. We have a global organization with very competent employees and, at least as important, many successful customers who constantly challenge and develop us. The macroeconomic climate is not favorable for anyone today and this of course also affects us. But our market is fundamentally healthy and with increased focus on cyber security in many countries, we see positive momentum in the short term. Our telecom product portfolio is also well positioned, in a world where video traffic and increased demand for security solutions drive mobile development. In traffic categorization (DPI), we are the market leader. In other words, we have a strong market position in exciting areas. This, combined with a proven earning power, makes us cautiously optimistic about the future. Our objective for the coming years is therefore unchanged. We want to achieve double-digit growth in network solutions, an EBITDA margin above 35 percent with strong cash flows.

In 2023, we also expect a strong cash flow. But after a weak first half of the year and with a troublesome economy, 2023 will be a challenging year in terms of growth and results.

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 and will be concluded by a questions and answer session. It can be attended through a webcast or teleconference and the presentation material as well as a recording of the presentation will be published on the Enea website (see details and references below).




Anders Lidbeck, Acting President and CEO

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 and fixed 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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