BTS Group AB (publ) (BTS_B) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Perfect. Thank you. Hello, dear investors. Thank you for joining. And for those of you I'll see later today, I'm looking forward to the time with you. Let's talk about Q2 2025. No doubt it was absolutely defined by a big problem, right? EBITDA dropped 23 percent in the second quarter. And if you unpack that, you will see that that is due to one issue. That is the operations of BTS North America. And within BTS North America's profit performance, we lost about $36.3 million SEC in the second quarter. Half of that was due to one-time expenses of severance and legal fees associated with the sounding board acquisition and also part of the dropping unfavorable U.S. dollar exchange rate. The other drop was 100% because of the decline in revenue in North America. So what's been done in early June, actually, we did a reorg. So we have a new management team in place in BTS North America. I've gained six new direct reports as a result of that. And about our top 30 partners in the company have switched to their reporting to. We'll talk more about that in just a minute. But Q2 was also defined by something else. We set out this year to get back to double digit growth. And I'm very proud to say that two out of our three units are successfully back to double digit growth. BTS Europe and BTS other markets. Let's go through each one of the markets now in more depth. So BTS North America had negative 4% revenue growth in the second quarter. And our new growth strategy has been fully implemented. Our view on the main reason for the negative 4% growth is an inefficient sales operations. It is true that Trump had an impact on tariffs from early April in the second quarter. It is true that some of our customers went into delays, conservatism. They froze. One of our largest company client...