In This Article:
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Revenue Growth: Increased by roughly 30% year-over-year in H1 2024.
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EBITDA Growth: Increased by 33% year-over-year in H1 2024.
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EBITDA Margin: Slight increase from 6.4% to 6.6% compared to H1 2023.
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Operating Cash Flow: Positive EUR 68.6 million in H1 2024, a significant improvement from a negative EUR 79.9 million in H1 2023.
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CapEx: EUR 12.1 million in H1 2024, aligning with a CapEx to revenue goal of 1.4%.
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Share Buyback Program: Completed with a volume of EUR 115.6 million, representing 10% of share capital.
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German Segment Revenue: Declined by 1.1% overall and 6.1% organically in H1 2024.
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International Segment EBITDA Margin: Dropped from 11.1% to 7.7% due to weaker performance in Belgium.
Release Date: August 13, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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CANCOM SE (XTER:COK) reported a significant improvement in operating cash flow, with a positive cash flow of EUR 68.6 million in the first half of 2024 compared to a negative cash flow in the first half of 2023.
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The company's EBITDA margin increased slightly from 6.4% to 6.6% compared with H1 2023, driven by higher services businesses.
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The international segment showed strong growth, particularly in Austria, contributing significantly to the company's overall performance.
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CANCOM SE (XTER:COK) successfully completed a share buyback program, utilizing EUR 115.6 million, which indicates strong financial health and shareholder value return.
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The company maintained discipline in capital expenditures, aligning with their CapEx to revenue goal of 1.4%, showing effective cost management.
Negative Points
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The German segment underperformed, with a 1.1% decline in overall revenue and a 6.1% organic decline, not meeting the company's expectations.
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There was muted demand in the SMB segment and public sector businesses, particularly affecting Q2 results.
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The Belgian business experienced slower demand and decision processes, contributing to an organic decline in the international segment.
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Despite positive cash flow, the company typically experiences negative cash flow in the second and third quarters due to ongoing project costs.
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The company faced challenges with top-tier customers in Germany not reaching usual seasonal demand levels, impacting overall performance.
Q & A Highlights
Q: Can you elaborate on the reasons behind the muted demand in the German segment during H1 2024? A: Rudiger Rath, CEO, explained that the muted demand was primarily due to a lack of impulse from the SMB segment and top-tier customers in Germany not reaching usual seasonal demand levels. This was exacerbated by the Lynx leak budget debate, impacting the expected demand in June.