Netcompany Group A/S Q2 2019 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Yiwei Zhou - SEB, Research Division - Analyst : I have 3. Firstly, just looking to the U.K. margins. I understand that you just expand the one-off project impact on the public sector. But then looking to the private sector, you also have a significant improvement. And could you add a little bit color on that? And then should we expect the -- this would be the run rate? Or -- yes, please do. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 21, 2019 / 9:00AM, NETCG.CO - Q2 2019 Netcompany Group A/S Earnings Call

Question: Yiwei Zhou - SEB, Research Division - Analyst : My question is the U.K. private sector margin, the improvement in the quarter.

Question: Yiwei Zhou - SEB, Research Division - Analyst : Okay. Fair enough. And then my second question is on the admin cost, it has increased to DKK 94 million in the quarter. And should we expect this to be the run rate for the remaining of the year? And could you also give us a little bit of indication on the level for 2020?

Question: Yiwei Zhou - SEB, Research Division - Analyst : Okay. And for 2020?

Question: Yiwei Zhou - SEB, Research Division - Analyst : Okay. Fair enough. And my last question on the FTE. Compared to Q2 '18, it shows that you have hired much more FTEs in Denmark this quarter. Can we expect this would be the hiring pattern for Q2 in the future?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Just another question on the guidance. So I understand it's due to -- this delayed tender for us is due to the election. But do you then expect a positive contribution from these delayed tenders in 2020?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Okay. And then my next question is regarding one-offs. Is there any significant one-offs we need to be aware of? I saw some lines on that in the report, but can you elaborate a bit on it?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : And how much -- is it possible to say how much does that impact the margin? Or is it a special items? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 21, 2019 / 9:00AM, NETCG.CO - Q2 2019 Netcompany Group A/S Earnings Call

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Yes. Yes, yes. And then there was some noise on the line. So maybe just one more time, regarding this higher churn, as I heard it in U.K. and Norway, can you elaborate a bit on that again?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Okay. And in terms of Norway, is it a change you see in the market in terms of this lack of competencies? Or is it as you expected?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Okay. And then in terms of Denmark, I think I read that you won a new insurance client in the private segment. Can you elaborate a bit on -- is it a very big client or something like that?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Oh, it was the same one?

Question: AndrT Thormann - ABG Sundal Collier Holding ASA, Research Division - Analyst : Okay. Okay. But it's the same as you won in Q1?