Karnov Group AB (KAR) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to Carnum Group's earnings conference, where we will present the outcome of the first quarter of 2020. Magnus and I will present the outcome of the quarter using a few slides and then we'll open up for questions. With that said, let's get started with the presentation. Please go to slide three. Digging into the numbers, the adjusted EBITDA margin was 29%, compared to 26% in Q1 last year. We convert that margin improvement to a strong free cash flow. The organic growth was 3%, driven by organic online sales growth in all markets. The legal businesses in Region North had 11% organic online sales growth, a small improvement compared to the previous quarter. The corresponding number in Region South was 3%, hopefully the start of a continued online sales growth. Leverage was 1.8 times, well below our financial target. Please go to slide 4. We have now completed the large renewal season in both Region North and Region South. Customer satisfaction is on a high level and the retention rates are on the same high level as previous years. Customers are upgrading to our AI supported solutions and the number of users in all customer segments is growing and also the monthly usage. Two good signs of appreciated products. In Q1, the organic online growth was 5%, driven by our legal businesses in Region North, which had 11% organic online sales growth, and Region South, which had 3% organic online sales growth. Our market-leading Spanish business is accelerating growth thanks to a stronger product portfolio and deep expert authored local content. The French business had weak legal training sales. We are currently taking action in France. At the end of March, we launch new AI products in France and Spain. The new products are based on the group's AI platform and gener...