Proact revenues fall in Q2 despite strong UK performance

The VAR’s CEO attributes its negative results to geopolitical tension and rapid external shifts

Swedish VAR Proact reports shaky second quarter results, deploying several cost-saving initiatives to cushion the blow.

Total revenue decreased by 7.9 per cent, from SEK 1.27bn to SEK 1.17bn (£90.56m).

Adjusted EBITA was down 21.3 per cent, landing at SEK 76m compared to SEK 96.7m the previous year.

This downfall was mainly caused by activities in its West (Netherlands and Belgium) and Central (German and Czech Republic) units, which reportedly faced challenges related to low utilisation, as well as the negative effects of earlier high customer churn, impacting the systems and services businesses in both regions.

Revenue in the West unit, which represents 15 per cent of Proact’s total income, dipped 14.4 per cent from SEK 204.9m to SEK 175.5m.

Revenue in the Central unit, which makes up 13 per cent of the firm’s earnings, plummeted 45.2 per cent to SEK 145.5m, compared to SEK 265.4m the year prior

To solve this issue, the organisation has launched cost-saving initiatives to improve profitability, such as skills reviews, refocused sales efforts, and a restructured delivery organisation which will aim to boost efficiency and customer value.

While these actions are carried out with a strong focus in these two regions, they span the entire group.

Meanwhile, Proact’s UK branch, which ranks number 88 in CRN’s Top VARs 2025 list and represents 15 per cent of its total revenue, has seen good development over the quarter.

Revenue increased 18.7 per cent year-on-year, from SEK 178.3m to SEK 211.6m.

The system business grew 20.8 per cent to SEK 101.4m, compared to SEK 84m the year prior, and service revenues rose 16.8 per cent to SEK 110.2m (Q2 FY24: SEK 94.3m).

The upward trend was also fuelled by the acquisition of UK-based cloud native consulting, engineering, and managed services business BlakYaks in March.

In the Nordics and Baltics (Sweden, Norway, Denmark, Finland, Estonia, Latvia, US), the firm’s most important region, representing 57 per cent of its total earnings, revenue rose 3.6 per cent to SEK 672.4m (Q2 FY24: SEK 649.1m), driven by cloud and support services, despite a decline in consulting services.

“We operate in a time marked by geopolitical tension and rapid external shifts, which present opportunities for Proact but may also impact our short-term business performance,” said Magnus Lönn, president and CEO of Proact since February.

“Combined with the current challenges in Central and West, this creates some near-term uncertainty in the economic outlook.

“However, our path forward is clear: we double down on what works, scale where we see the highest value, and act swiftly where improvement is needed.

“We are building the Proact of the future, with a clear ambition to be the leading partner for secure AI and data infrastructure in Europe.

“Through strategic investments, engaged employees and a strong market position, we have everything in place to grow profitably, deliver customer value and strengthen our position further.”