Good afternoon. This is the Chorus Call conference operator. Welcome, and thank you for joining the Tinexta Group consolidated results at September 30, 2022 conference call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Josef Mastragostino, Chief Investor Relations Officer. Please go ahead, sir.
Thank you, operator. Good afternoon, and good morning to the folks in the US. Thank you for joining Tinexta's 2022 first nine months results presentation. Here with me today is Pier Andrea Chevallard, CEO of Tinexta, and Oddone Pozzi, Group Chief Financial Officer. As a reminder, all the relevant documentation of the nine months 2022 results can be downloaded from our company website in the investor relations section. For the purpose of this call, I will go over the nine months 2022 highlights and updates. Oddone instead will go over the nine months 2022 financial results as well as the business units' performance, providing us with a deep dive. The last part of the call will be dedicated to Q&A. A recording of this conference call will also be available on the company website, and it will be posted upon completion of this call.
At this point, I will kick it off by turning to page 3 of the presentation. 9 months 2022 results shows continuing double-digit growth, providing support on our way to delivery for 2022. Please note that in order to allow as complete analysis as possible in this presentation, 9 months 2022 results are compared both on a like-for-like basis as well as on a 2022 basis, which includes all of Tinexta's companies with the addition of the newly acquired ones. In addition, as we had mentioned during our last conference call, the 9 months financial comparison data has been restated, taking into account the disposal of the Credit Information and Management division and emphasizing results on a continuing operations basis. This, in other words, means that a more meaningful like-for-like comparison has been carried out between the years 2022 and 2021.
On the P&L, for instance, you will find a line item highlighting at the net income level the results of discontinued operations. Turning to revenue, they came in at EUR 246.7 million in nine months, posting +19% versus prior year growth. EBITDA adjusted, which you all know by now excludes stock option other non-recurring, is the better indicator for real performance, and it came in at EUR 54.8 million, growing 17% versus prior year, mainly driven by Digital Trust and Innovation & Marketing Services. EBITDA on a reported level came in at EUR 49 million for the nine months, growing 12%. EBITDA margin was mostly in line with prior year at 22%, and EBIT was close to EUR 29 million, growing 15% versus prior year.
Net profit of continuing operation came in at EUR 18.5 million, growing 21% versus prior year, and net profit was EUR 64 million, growing over 168% versus prior year, mainly driven by the net capital gains deriving from the sale of Innolva. Net financial position was EUR 139 million versus EUR 263 million on the fiscal year 2021. This was strongly improved by over 47% versus fiscal year 2021 on the proceeds from the sale of Innolva as part of the sale of Credit Information and Management. The leverage ratio or net financial position over LTM of EBITDA adjusted was down at 1.67x versus 2.67x on the fiscal year 2021.
Adjusted free cash flow of continuing operations was EUR 36.2 million, substantially in line with prior year, and on LTM basis, adjusted free cash flow of continuing operations was close to EUR 50 million. Going to the business line, most of the business lines continued to grow also in the nine months 2022. Digital Trust grew 22% in revenue. EBITDA grew even more at 35.4%. EBITDA margin reached a very high 29% margin. Cybersecurity grew 6% in revenue, and EBITDA was close to EUR 5 million with an EBITDA margin of around 9%. Innovation and marketing services posted a very healthy +27% growth in revenues, and EBITDA grew 10.2% with an EBITDA overall margin of 35%.
In terms of the recent events and updates, as you all know, we issued a press release on October 28. Tinexta signed binding agreement with Intesa Sanpaolo relating to its entry into the share capital of Warrant Hub. The transaction provides for an investment by Intesa Sanpaolo to enter into Warrant Hub that currently holds 100% of For Value for a value of EUR 55 million. These are the proceeds from the sale to CRIF of the stake of Innolva. The investment in Warrant Hub will take place through a capital increase as a result of which Intesa Sanpaolo will hold 12% of the share capital. The current strategic partnership between Intesa and Tinexta is confirmed and strengthened through commercial agreements relating to For Value's activities aimed at supporting Italian small medium enterprises in their growth path.
The closing is expected imminently, following the adoption of the resolution of the capital increase and the approval of the new bylaws. Upon completion of the transaction, 88% of Warrant Hub's share capital will be held by Tinexta, which expresses the corporate governance, and 12% by Intesa Sanpaolo. We will discuss, turning to page four, all the different transaction details. We've just highlighted the third box, and I'm sure Oddone will complete any further questions that you might have. Going to page five, most of the comments have already been made. I will leave it to Oddone at this point for any specific details. Oddone.
Good afternoon, everybody. Let's walk through the results at page five, the results of nine months. You know, revenue is going up by almost 20%, both on organic pace, it's up 6%, plus the increase driven by the acquisition we have made in CertEurope and e-Value. Digital Trust, as we will see later on, went up more than 10%, but also Cybersecurity, Innovation & Marketing Services were up. The same, of course, also for EBITDA adjusted, that is up 16.6%, and the profit of continuing operation is going up more than 20%.
If we look also at the adjusted free cash flow, we, the group continue to deliver a very interesting free cash flow that accounts for EUR 36.2 million at the end of September. We move now to page 7, and we go through the P&L. The P&L of the first nine months showed an increase of, on a like-for-like basis of 6%, while the total increase accounted for 19%. In terms of profitability, the EBITDA is almost around EUR 55 million at 22.2%, versus 22.7% of prior year.
On a like-for-like basis is in a slight decline as during Q3 especially, we have seen some revenue, especially in cybersecurity and Innovation & Marketing Services that is going to move in the last part of the year. Definitely Q4 for cybersecurity and IMS is the most important quarter of the year, and even more is gonna be this year. Non-recurring costs were above the previous year, driven by the significant, I would say even exceptional, number of deals that we have performed during the year, while depreciation and amortization provisioning are basically aligned with the previous year.
Among the depreciation, we have to consider that EUR 8 million of the depreciation are coming from the PPA, so we have the amortization of the rest basically aligned to the level of CapEx. Financial charges are above previous year as they include also more than EUR 1 million increase there now, driven by the better results delivered by the companies of the group. Overall, financial charges are aligned with the previous year, driven by the fact that the group was able to hedge the interest rate, and therefore we account also EUR 8 million of benefit as an asset during this period. Profit before tax is increasing compared to previous year and therefore also net profit from continuing operations.
Results of discontinued operation already includes a profit in excess of EUR 40 million, forty million for the sale of Innolva, while is not accounted, of course, the profit from the sale of ReValuta that is going to occur in the next months. I would move at this point to page 9 in order to review the financial and balance sheet results. The net capital investment drop by 9%. This is driven by a mix of decrease by the sale of Innolva for almost EUR 130 million, and the increase driven by the acquisition we have done in e-Value, Enhancers and Plannet for almost EUR 60 million.
On top of that, we have to include the new leasing contract for the headquarters in Milan that accounts for EUR 16 million. Net financial position basically is half of the year-end last year. This has been driven by several matters, as we can see here, definitely very important. Free cash flow, not far from EUR 40 million, and the disposal of Innolva, as well as the share capital increase, driven by the Bregal investment. During the period, the group was also able to distribute dividends in excess of EUR 20 million, as well as acquisition of new companies that we perform during this year.
The shareholders' equity is increasing by 32%, mainly driven by the Bregal investment in InfoCert and reduced by the dividends. If we move to page ten, we can walk through the net financial position. Like I said, you know, the group performed quite an important number of acquisitions that are performing, especially e-Value, very well in the first nine months. The e-Value has been performed in January. Then we have the other deals that we have completed, like Enhancers, Plannet and the other small that are helping our growth. Dividends accounted for more than EUR 20 million, as well as the adjustment to leasing contract for 18. In terms of cash flow, the cash flow is at EUR 36.2 million.
The adjusted cash flow of some continuing operations, very positive. Also, if we compare to previous year was 39. We have to consider the last year, we were able to extract EUR 7 million from the working capital. This year is just EUR 4 million. If you... So it's positive, but obviously, this is lowering a little bit. The free cash flow still stand at the very high level. The net financial position bridge, I would say at page 11, we can skip. Important, we were able to lower from 2.7 times the ratio net financial position EBITDA to less than two times at 1.65.
If we look at this, the work of the net financial position over the last basically last year on LTM basis, we see that the group was able to deliver almost EUR 50 million of free cash flow from continued operations, quite very important amount, and to lower significantly also the financial charges. For the rest, I think that we are talking about matters that we already addressed in the previous slide. Let's go now through the business unit performance. I will go to page 15, and we may go to Digital Trust. Digital Trust deliver another very positive quarter.
Now at the end of nine months, the revenue of Digital Trust is going up by 20% in terms of revenue and 35% in terms of EBITDA. Digital Trust confirmed their stronger capability to handle the market, but as well as to handle the profitability. The revenue on organic basis was up 10%, and EBITDA is up from 15%. This is a confirmation, the fact that there is a very interesting operating leverage on Digital Trust, and this is continuing. Digital transformation management was growing 40%, slightly above the off-the-shelf products that were up by 11%.
Especially InfoCert is continuing to improve their presence on the large customers by with a very interesting backlog of orders and new customers. The CertEurope after nine months is performing very well, basically meeting the target that we set at the beginning of the year. You know, we do expect the division to continue to perform very well also in Q4. If we move to cybersecurity, we can go through the analysis of results. The revenue is going up by 6%, slightly below our initial expectation, but still very positive. EBITDA is slightly going down, but this is a temporary situation.
As we already shared during the first two quarters, during Q1, we started to increase significantly our investment in terms of resources in order to enable the future growth of this business. We are happy about the increase of the specific business of cybersecurity. That is performing well. Our backlog of orders is improving month after month. We expect to reverse the situation during Q4, where most of the concentration of the revenue, I will say in the model profitability, is expected to be delivered. As of today, this is the situation, but we are very confident that the situation will improve as expected during Q4.
If we move to Innovation & Marketing Services. We see here that revenue is going up by 27% and EBITDA is going up by 10%. Let's say that in this area we have a lot of very positive indication, especially in term of revenue that are coming from digital marketing for internationalization as well as other ancillary business line to Finanza Agevolata Automatica. Finanza Agevolata Automatica is still performing at a very positive level, but not at the level of previous year. Part of the business has been shift to Q4 from Q3. Obviously at the end of Q3, we are basically we have been affected by the different revenue margin mix between the different lines.
Finanza Agevolata Automatica is enjoying a much better profitability than other business line, but we are expecting to deliver a much better result in Q4 to partially recover this shortfall in terms of profitability. Still, overall, this business line is going up more than 10% in terms of profitability. Thank you. Thanks to Josef.
Yep. To wrap it up, we're turning to page 19 of the presentation. As we all know today, in light of the results of the continuing operations, we are confirming the 2022 guidance in terms of revenue and adjusted EBITDA. As you can see, the figures are here. We're expecting around 20%-23% in terms of growth for revenues and around 25.10% growth versus prior year for adjusted EBITDA, with a very enviable net financial position over adjusted EBITDA of around 0.6 times. At this point, operator, I would like to open the line for Q&A. Thank you.
Thank you. Excuse me. This is the Chorus Call conference operator. We will begin now the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking question. The first question is from Renato Gargiulo with Stifel. Please go ahead, sir.
Yes, good afternoon. Well, my first question is on Digital Trust. The division showed a pretty good improvement, acceleration in the organic sales growth in the third quarter versus the first part of the year. Just wondering if you can give us any more color on that. Is it including any first positive impact from the recovery plan, or concerning synergies with cybersecurity? Second question on Innovation & Marketing Services. Are you seeing any sign of slowdown in end demand for any of your end markets or customers given the macro environment? You were anticipating an improving trend in the last part of the year beyond the typical business seasonality. How much visibility you have on that? We are in mid-November.
I think that you should have a pretty good visibility. Maybe it's very early, but on the new Italian government, which is working on the new budget law, do you have any indication on potential implication on your business on Innovation & Marketing Services? Last question, following the sale of the Credit Information & Management, clearly you have a very strong financial position. Can you give us any update about your M&A strategy in terms of potential market targets by division? Thank you.
Give us a second, Renato.
Okay. I start from the comments on Digital Trust. You know, as we anticipated during our plan presentation in February, you know, our goal was to continue on a very impressive pace in terms of revenue growth on organic basis, and we are confirming that, as well as our capability to leverage, you know, the size of InfoCert, the capability of InfoCert are allowing to have an EBITDA growing much faster than the revenue. This is occurring since Q1. It has occurred also in Q2, and it's happening also in Q3. You know, the company is stronger and is capable to deliver this kind of results. It is a very interesting business. PNRR is not helping Q3 results, even though now have been started some major bids.
We are attending these bids, as a raggruppamento, in group with other companies, and in one case we were part of the group that won the first bid. This is something that will deliver revenues in the future years, but still is a good news to have started this, you know, to have this opportunity at least as a backlog. This is important. We will give more color, you know, during 2023 or during the plan presentation when we will have more information about this. About IMS, definitely we cannot say that, you know, the GDP as is, you know, working now is definitely worse than what we expected when we presented the plan.
In any case, we are not, we cannot say that there is a major impact on that, so we can identify exactly which is the impact. Still, what we have up to now is a little bit a lowering of the Finanza Agevolata Automatica compared to previous year, but we are recovering on other business lines. The revenue mix is less favorable from the margin standpoint, but as we know, during Q4, there is the major concentration of revenue of Finanza Agevolata Automatica, and this is what will help us in delivering the results that we are expecting. It is, I would say, much more challenged than expected, but this is what is gonna happen.
You know, even few million more of revenue could definitely give a much different color as the margin on Finanza Agevolata Automatica is very strong. The team is very committed. You know, the first indication of October are positive and aligned with our last monthly forecast. We are confident to deliver as expected. In terms of net financial position, like you said, you know, we shared a 0.6 ratio net financial position EBITDA adjusted by the end of the year. Obviously, this includes also the completion of the sale of ReValuta. This could happen in December, whatever is happening is not an issue. The process is proceeding as expected.
Obviously, we will be in a very positive position, as already shared with the market. We are continuously working on M&A, you know, with the same criteria we had during the year. Focus on international for Digital Trust, Infosec, as a part of the strategy, is looking for other deals around Europe, as well as potentially after having completed a couple important deals in IMS with Enhancers and Plannet. We are thinking that having an opportunity at international level to reinforce the presence of Warrant Hub will be very aligned with our strategy. For cybersecurity, we are very focused on the Italian market, and we are deeply analyzing the market. You know, we are in discussion with, as always, with several subjects.
We do expect to continue and to be able to close a deal in the next quarters.
You had, Renato, you had a question on the government and any particular views on the budget law. It's still very early, so we really have no major comment on that.
Okay. Thank you.
Okay. Perfect. Thank you. Thank you very much.
You're welcome.
The next question is from Isacco Brambilla with Mediobanca. Please go ahead, sir.
Hi. Good afternoon, everybody. Just a couple of questions from my side. The first one is on IMS and implied performance in the final quarter of the year. You shared some indication on October trends and some qualitative updates on how you think the performance of the division to evolve in the coming months. Is there also any kind of data in terms of quantitative backlog, which you think to deploy over the coming months just to?
Isacco, can you repeat that on, what do you mean by qualitative, quantitative? What kind of details you want?
Well, if you have any data in terms of backlog for the division to be deployed over the next month, just to give a bit more visibility on the results you are embedding in your guidance for IMS in 2022. Second question is on For Value, if you can share the contribution in terms of revenues or EBITDA generated over the nine months of this year.
In terms of IMS, we would like to stress the fact that the second part of November, all of December, as everybody's accustomed here in Tinexta knows that, IMS in particular, Warrant, has a very busy schedule, right? We do see a very strong pipeline. You were referring to some sort of backlog, but for us, it's a pipeline of a number of transactions that we can complete by the end of the year. We're very confident that the pipeline is very strong, like it has been the last couple of years. I think that you together with many others that know the story very well, know that Warrant is
Expected to very, very strongly deliver in the next six weeks, I think that are gonna be, you know, the most important elements. For For Value, you know, For Value as we develop a plan where definitely results will becoming, you know, significant by 2020. This year, let's say we invest. First of all, we appointed a new general manager since July, and we are fine-tuning all the operation. I have to say that now with the sale of Innolva and the move of For Value from Innolva to Warrant, this, at the end of the day, is gonna be a significant advantage.
Because, you know, being Warrant the most important, let's say customer for For Value, definitely having For Value directly 100% controlled by Warrant, this will help quite a lot. This year, obviously, and the following year, we are missing the contribution of Innolva to For Value, but I have to say that as of today, For Value is delivering results according to our expectation. I think we will have more color on this business starting from 2020. Okay. Many thanks, Bob. You're welcome.
The next question is from Andrea Bonfà with Banca Akros. Please go ahead, sir.
Hello. Good afternoon to everybody.
Oh.
My question is related to Innovation & Marketing Services. If you can elaborate a little bit on the organic performance EBITDA level, which I've seen was -9% in the first nine months, which implies a -13% in the Q3, according to my calculation. It follows a Q2, which wasn't particularly buoyant. Some explanation on that point. If you can comment on what's the state of the art on this integration process with all the assets of the cybersecurity, because implicitly, it seems that you need to deliver a strong Q4 in order, let's say, to converge toward your trajectory of the, say, mid-term target. Thank you very much.
Andrea. Well, as we said that, you know, Q4. If you compare Tinexta now and Tinexta when we had Innolva in the perimeter, it's clear that Tinexta is going to be a group where Q4 is gonna be the most important, even more the most important quarter of the year. If we look to cybersecurity, when we look at IT companies generally, they have Q4 as the most important year. If we look at IMS and especially Warrant, this is the most important quarter of the year because, you know, the customer has to complete the investment before the end of the year in order to be able to have the tax benefit in the following year, tax filed. This is the situation.
If you look at 2022, what has happened in Innovation and Marketing Services has been postponed. You know, we shared also during some meetings, some conferences we attending, that we see many customer moving their investment finalization in Q4 compared to Q3, in more than the previous year. This is the reason why the Q3 fall in terms of profitability is driven by. We do expect, and results of level of revenue of October is encouraging. We do expect Q4 being able to basically recover very large portion of this delay. This is the situation as of today.
This is only related to Finanza Agevolata Automatica, because if we look at all the other business lines of Co.Mark, Queryo, Co.Mark is going up 80% in revenue. Queryo is going up 50% in revenue. European funding is going up 40%, compared to previous year. Training is going up, too. This means that from the strategic standpoint, we have done the right steps. From the operation standpoint, the delay of some investment from the customer is delaying our revenue opportunity. We are very committed. The team is very committed, and we are confident to be able to achieve the results we are sharing with the market.
Definitely last two months also, you know, a few days ago, I was talking with the CEO of Warrant. He was very positive on different other business lines. We are, you know, running to do this. If we move to cybersecurity. The situation is that, as we already explained during the year, we went through a significant investment of people. Basically, we hired among 30-40 people, fully specialized in cybersecurity in order to complete, especially to complete our capabilities in that area. We are now happy about the level of incoming orders and sales activity we are performing.
Now we expect to be able to convert the sales in revenue by Q4, but I would say that we are going to open the 2023 with a much higher backlog portfolio of orders compared to previous year. At the end of the day, for us, for this project will be not important if we deliver EUR 1 million more of EBITDA in Q4 2022 compared to 2023. This is what could happen. For sure, Q4 will be much better than Q4 previous year. We are sure that we will open the 2023 with a much higher backlog compared to the previous year. We could even put in this way, that this project has a delay of six months, whatever.
It's not, you know, it's not changing the picture in the medium term, and so we are a little bit more under pressure of this. At the end of the day, we have considered that we are still confirming results of the year that were the external environment is definitely different. Because when we presented to the market, the war was not there, interest rates were not there. You know, having said that, we are still, you know, very confident that we will be able to meet the target or to land very close to the target that we are sharing. We cannot identify a specific point of recession or difficulties and whatever, but obviously the general context is less better.
Nevertheless, we are fully committed to deliver what we do expect.
Right. You know, with to complete that, we remember this year was a very particular year where we actually sold one of the most important divisions, which is Credit Information & Management, with a capital gain, which is gonna be north of EUR 80 million, EUR 85 million, EUR 88 million, right? In terms of return to the shareholders and therefore to the market, we also need to consider that this has been also a year where we've been extremely busy with the new M&A, with the projected M&A, with the disposal of a very important asset, and you know, doing everything in a flawless way. As Oddone was saying, you know, the cybersecurity also needs to be looked at as a project that is in transition period between when we bought it and what we expect to do in the midterm. Okay?
Thank you for the question, Andrea.
Thank you, Andrea.
Thank you. If I may, is it possible for you to update us on what's the state of the art in the market for multiples in the Digital Trust, in the sense that, I presume you are looking around in Europe to buy asset in the Digital Trust arena. Is the situation, I mean, starting to change in terms of what the seller or the potential partner is asking for, or they're still in the, let's say, in the high bracket kind of region? Thank you.
Yes. Well, we are dealing with some potential targets. Definitely the asking is not dropping significantly, as of today, since, you know, beginning of the summer. I have to say that, you know, for us, if we do see very interesting opportunity and we do see interesting synergies now that, you know, we are expanding our presence also around Europe, you know, for us it's very important the total return we may have, including also the synergies we may put on the table. Obviously, we are very careful. We will look at 360-degree the deal. As of today, the asking is not very different.
I would expect that when finally private equity will be in a position as now not to offer what they were able to offer in the past, we will see retracement or retracing of the request. We will see. We are not especially worried. We look at an investment on a 360-degree, how it fit, how it's helpful to complete our presence, how much competence we are bringing on the table, and how much opportunity we will have to implement the digital transformation management also for the company we are going to acquire. On other segments, definitely retracing this year, and we are moving under this direction.
Right. To complete that, we're looking at the Digital Trust targets also in a function of potential synergies. I would like to stress the fact that CertEurope, where we were actually in Paris some time ago, CertEurope is doing extremely well. We highlighted this both on the press release as well as on the interim statement where the Enterprise Solutions are now being fully dispatched abroad. We're looking at these targets also from a much more strategic standpoint than we did probably five or six years ago. That needs to be taken into account also in the valuation of the multiples. Thank you very much.
You're welcome.
You're welcome.
The next question is from Carlo Maritano with Intermonte. Please go ahead, sir.
Good afternoon, everyone. I just have a couple of questions. The first one is on the small bolt-on acquisition you completed this year. If we exclude the value in Enhancers, you spent around EUR 20 million in small bolt-on acquisition. I was wondering if you could provide us some an idea of what could be the combined contribution on a yearly basis in terms of revenues from these from these deals. The second one is on cybersecurity. If you can provide us more color on the different growth trajectory of the pure cybersecurity and the system integration part of the business. Thank you.
Well, yes. You know, in terms of, definitely in terms of, profitability, you know, the level of contribution of Enhancers, Plannet, is gonna be not particularly significant. You have to consider that, overall, we invested EUR 30 million for the two companies, you know, on average, their plan was in the range of EUR 3 million, but one company was for nine months, the other company for five months. We are talking about probably, slightly below EUR 3 million in total. This is what we expect from those companies. I would say very important is what we are going to deliver with CertEurope and Visura.
These are very bold acquisitions we have done, and we are completely happy as of today with what they delivered. They are perfectly delivering as expected, and definitely the plans that we put together for the two companies were quite challenging. I would say that this is a positive record that is helping us, you know, to be even more convinced on our strategy to go international. In any case, I think we are working, trying to integrate all the companies and try to implement our strategy.
Yeah. Carlo, did you have a follow-up or what was the other question? On cyber and then-
Yeah. Yeah, the second one was on cyber. If you could provide just an idea of the difference, different growth trajectory of the pure cybersecurity. Yoroi, Swascan compared to Corvallis, just in the same way.
Yoroi, Swascan grew quite significantly. We are talking about not huge number, but we are talking about the growth in terms of revenue of, you know, in excess of 30%. Obviously, we are talking about small numbers, but still important. For Corvallis pure digital. The first nine months, we can say that more or less the revenue is aligned. The point is that compared to previous year, we have investment in new people in the cybersecurity that has a level of revenue. As of today is not yet covering all the costs. During Q4, we expect this is going to be reversed and being able to add also investment to be profitable.
Okay, thank you.
You're welcome.
You're welcome.
The next question is from Russell Pointon with Edison. Please go ahead, sir.
Good afternoon all. I have three questions, if that's okay. First one, on cybersecurity, you talk about a margin resolve and revenue mix. Could you give some quantification of how great each of those was in terms of the impact on the margin? And give some indication of how those things will switch around in the coming quarters. I presume the investment drops off and the revenue mix probably improves. And could you give some indication of the relative margins which you're talking about when the revenue mix is being affected that way? On CertEurope, the numbers, it seems to be generating similar amounts of revenue in Q3 as Q2. Is there a different kind of seasonality in CertEurope versus the rest of Digital Trust?
In particular, in Q3, the EBITDA margin looks to be about 50%, which looks quite high. My final question is, you bought back some shares in the quarter, and you alluded to this earlier in terms of capital returns. It's been a busy year with respect to M&A, but could you just remind us of how you think about repurchasing shares, especially given, you know, where the share price is versus, you know. Thank you.
Russell, let me start with the first one in terms of cyber. We already had mentioned it before. I don't know if you had caught it, but we're more than happy to repeat it. There's a couple moving parts here, right? First of all, the more traditional cybersecurity businesses, such as Swascan and Yoroi, are growing in line with what the market is. That means double digits. That is a very supporting statement that we have. In terms of implementation service, and therefore, the situation is particularly driven by the fact that we've invested at the beginning of this year throughout Q2, and therefore we have a, let's say, more of a bulk to come in the fourth quarter.
Projections in terms of the EBITDA are very, I would say, it's pure math. If we did less in Q3, obviously the overall sum of the marginalities of Q4 will have to be much more important. That is how things are going. Remember, the project of cybersecurity needs to be looked at since we bought the division in the two-year, three-year plan. As we were saying, you know, we want to be very confident that the pipeline of backlog and the pipeline of business is now more towards Q3, Q4, and therefore we will start the year in 2023 with a much more broader, I would say, pipeline. It's just a matter, I would say, of timing. You were actually asking us also about CertEurope. I think we discussed upon the fact that CertEurope is doing very well.
It is contributing very strongly to the top line of Digital Trust. The very important news is that we are now pitching the Enterprise Solutions in France because it is very important that we are looking at CertEurope not just as a vehicle to sell the solutions from InfoCert, but also to start selling the Enterprise Solutions, which will bring an increased sort of contribution also in the fourth quarter. I mean, Digital Trust per se is growing 20% on revenue and 35% on margin. We are fully in line, if not even better, in terms of operating leverage. I wouldn't really worry about that. In terms of the buyback, I mean, we started the buyback for a couple of reasons. It's been going on now.
Number 1 reason obviously is to return capital, because at this point it's a way to remunerate shareholders. At the same time, we remind everybody that we have a stock option plan that needs to be serviced, and therefore the buyback program is emphasizing also that. I think it's just fully in line with the current valuation. I wouldn't add anything else. Go on, Manuel.
Nothing. Just maybe in order to address Russell in one matter, you know, by the end of the year, we do expect that the pure cybersecurity business will be in excess of 20% EBITDA margin. Exactly aligned what we do expect. The rest of the business will be even aligned to the margin we forecasted. What is probably been a little bit different from what we projected at the beginning of the year was our capability to hire a significant number of people and to put them in the virtuous circle of generating of revenue. Probably, this has taken couple of quarters more than we expected. Well, this is the difference. It's not that there is anything that is not going as we expected. Probably is the timing of implementation that is taking more time.
That's pretty much it.
Okay. Can I just come back on the margin? It's down by about 2.5 percentage points from nine months. How much of that margin decline is due to within staff stuff, et cetera, versus the changes?
I have to say this is mainly driven by what I explained, and partially because we are delivering, you know, 90% of services, or probably 95% of services and 5% of product. Product has been lower than expected in Q3, and we expect to sell more products in Q4. This will help. It's the reason why the margin is a little bit because when you sell a product, it's full margin. We sold less product in Q3. We expect to sell a little. But we are talking about EUR 1 million, but EUR 1 million is making the difference in terms of margin there.
Okay. Thank you.
You're welcome. Thank you very much for connecting to Tinexta conference call. If you have any other information, we're more than happy to connect. Thank you, and have a good evening.
Thank you, everybody. Thank you, bye.
Bye. Thank you. Bye.