Trifork's Nine Wins Big: Denmark's Digital Identity Wallet

In the ever-evolving landscape of digital innovation, Trifork's subsidiary, Nine, has secured a strategically important contract to develop Denmark’s Digital Identity Wallet. This move is not just a feather in the cap for Trifork but a significant step towards digital transformation and sustainability, aligning perfectly with the company's broader strategic goals.



The contract, awarded by the Danish Agency for Digital Government, is a testament to Trifork's prowess in digital innovation and its commitment to sustainability. As CEO Jørn Larsen aptly put it, "We all need to become more sustainable, and I am proud to observe the impact we have on our customers’ ESG agenda through digital innovation." This initiative directly supports Trifork’s commitment to driving digital transformation and enhancing sustainability through technological advancements.

The development of a digital identity wallet is a significant step towards digital innovation, which is a core aspect of Trifork’s business model. This project aligns with Trifork’s strategic focus on the public sector, which accounts for 39% of its revenue. As mentioned in the third-quarter 2024 report, "Our Public sector business, accounting for 39% of revenue, is back on track with healthy growth and a robust pipeline." This contract not only reinforces Trifork’s position in the public sector but also demonstrates its capability to deliver large-scale, impactful digital solutions.

The financial implications of this contract are substantial. The agreement to partially exit an investment in the company XCI has contributed to realized and unrealized gains in Trifork Labs, significantly impacting the company's net income. For instance, in 2024, Trifork Labs recorded an EBT of EURm 13.3 driven by realized and unrealized gains from the agreement to partially exit an investment in the company XCI. This contributed significantly to the net income of EURm 17.9 for the year.

The financial outlook for 2024 was adjusted to reflect these gains, with revenue expected in the range of EURm 205-208, equal to -1.4 to 0.0% growth. The revised revenue guidance is explained by lower revenue expectations in the fourth quarter, including around EURm 7 in revenue on already agreed engagements now delayed to 2025. This indicates that while the contract has provided short-term financial benefits, it may also have implications for future revenue streams.

The adjusted EBITDA in the Trifork Segment is expected in the range of EURm 25-27, down from the previously expected EURm 31-34. This revision is due to the lower revenue outlook and the additional costs of reorganizations in Q3 and Q4. The EBIT in Trifork Group is expected in the range of EURm 8-10, down from the previously expected EURm 14-17. This suggests that while the contract has provided immediate financial benefits, it may also have long-term implications for the company's earnings.

The EPS growth of 13.3% in 2024, with basic earnings per share at EUR 0.85, indicates that the contract has had a positive impact on the company's earnings per share. However, the company's diluted earnings per share grew 15%, proving the strength of their two-legged business model – profitable operations in the Trifork Segment paired with strategic R&D investments in Trifork Labs. This suggests that the contract has contributed to the company's EPS growth, but it is part of a broader strategy that includes both operational profitability and strategic investments.

In summary, the contract has had a positive impact on Trifork's net income and EPS in the short term, but it may also have implications for future revenue streams and earnings. The company's financial outlook for 2024 reflects these potential implications, with adjusted revenue and EBITDA expectations. The contract is part of a broader strategy that includes both operational profitability and strategic investments, and it has contributed to the company's EPS growth.