European home solar provider Otovo continues to build scale in Q3

Norway-based home solar and battery systems provider Otovo ASA (FRA:89K) on Tuesday said it is continuing its growth, delivering another quarter of record sales, installations and revenue.

In the third quarter of 2022, the company completed 1,970 installations, up from 1,086 in the same period of 2021. Sales jumped to 2,740 from 1,470, with one in three customers choosing the subscription offering.

The firm's revenues grew to NOK 170 million (USD 16m/EUR 16.4m) from NOK 88 million in the third quarter of 2021. When accounting for subscriptions, revenues reach NOK 235 million.

Otovo, which describes itself as a marketplace organising hundreds of local installers, also said it managed to increase markup and margins despite rising hardware and labour costs. Gross profit was up to NOK 53 million from NOK 14 million in the prior-year quarter.

After launching in Portugal, the UK and Austria, Otovo has now sold projects in 10 European markets and the company also plans to enter the Netherlands, Belgium and Switzerland this year.

“This has been a strategically significant quarter for Otovo: First, we are progressing well in our entry into six new markets. Second, we have reached real scale on the subscription portfolio,” said chief executive Andreas Thorsheim, who also expressed confidence that the company will be able to maintain a 100% growth rate in the coming years.

In the third quarter, the operating loss widened to NOK 82.6 million from NOK 35.5 million a year back and the increase was attributed to the market expansion and the consolidation of European Distributed Energy Assets Holding AS (EDEA). Otovo acquired EDEA at the end of 2021 to boost the leasing of solar panels across Europe.

(NOK 1 = USD 0.094/EUR 0.097)

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