PARIS, Jan. 13, 2025 /PRNewswire/ -- EKINOPS (Euronext Paris - FR0011466069 - EKI), a leading supplier of telecommunication solutions for telecom operators and enterprises, has published its consolidated revenue for the 2024 financial year, ending on December 31, 2024.
Ekinops FY 2024 revenue
€m - IFRS Unaudited data
2023
2024
Change
H1 revenue
71.0
57.5
-19 %
H2 revenue
58.1
60.2
+4 %
12-month revenue
129.1
117.7
-9 %
Revenue of 29.8m€ in Q4 2024, down slightly by -2%
Q4 2024 revenue stood at 29.8m€, versus 30.3m€ a year earlier, representing a small quarterly fall of -2% (identical at constant exchange rates).
In H2 2024, Ekinops posted consolidated half-year revenue of 60.2m€, up +4% from the same period a year earlier. Sequentially, H2 revenue was up +5% from H1 2024.
Ekinops' annual consolidated revenue was 117.7m€ in 2024, down -9% year-on-year, identical at constant exchange rates.
+11% growth in Access in 2024, -30% fall in Optical Transport
FY 2024 was marked by dynamic growth of +11% in Access solutions, driven by the sharp rebound in business activity in France and several European countries (Germany and Belgium), as operators gradually rebuilt their equipment inventories.
Sales of Optical Transport solutions fell -30% year-on-year (-41% in H1, then -18% in H2). In addition to the significant base effect (+27% growth in 2023), this business line was impacted by operators' reluctance to commit to their investment plans in a challenging market environment (slower growth in Internet traffic, post-pandemic equipment overcapacity) and adverse economic conditions (global economic slowdown, high interest rates, geopolitical situations, etc.).
However, the end of the year was marked by a slightly more sustained activity, illustrated by sequential growth of +38% between Q3 and Q4 2024, and an increase of +20% between H1 and H2 2024, with the first deliveries of the new 800G solution. Q4 was the strongest quarter in 2024 for Optical Transport, encouragingly pointing towards a rebound for this business line in 2025.
In 2024, Software & Services accounted for 18% of Group revenue, compared with 17% a year earlier, with an increasing share generated by SD-WAN solutions.
Revenue up +18% in France, down -21% internationally
Ekinops achieved a strong performance in France in 2024, marked by strong growth of +18%, mainly driven by sales of Access solutions (+30%). At end-December 2024, France accounted for 41% of the Group's revenue (vs. 32% a year earlier).
Outside France, sales were down -21%, representing 59% of its overall activity, against 68% a year earlier.
In North America, where sales are mainly driven by Optical Transport solutions, revenue was 23.3m€, down -26% year-on-year (identical in US dollars). This region accounted for 20% of Group revenue in 2024 (vs. 25% a year earlier). In 2024, the US market was characterized by a significant wait-and-see attitude among operators, due to the economic context, a slowdown in bandwidth demand, but also the slow rollout of the BEAD (Broadband Equity, Access and Deployment) federal program expected by operators at the end of the year.
The EMEA (Europe – excluding France – Middle East and Africa) region, which accounted for 37% of Group revenue (vs. 41% in 2023), posted revenue of 43.8m€ in 2024, down -18% year-on-year. In addition to the unfavorable base effect (+23% in 2023), this region suffered from a particularly sharp decline in sales of Optical Transport solutions. The Group is nevertheless gradually returning to growth in the region, with sequential growth of +37% between H1 and H2 2024.
Asia-Pacific, which accounts for only 2% of Group revenue generated with just a few clients, was down -32% over the year.
Didier Brédy, Chairman and CEO of Ekinops, said:
"2024 was marked by multiple challenges for Ekinops, in a particularly complex global economic climate. Our sector contracted significantly, with our main competitors reporting between -6% and -25% year-on-year revenue declines.
After strong growth in 2023, our sales of Optical Transport solutions decreased sharply. Several factors explain this trend: massive investment by operators and businesses post-pandemic leading to overcapacity, a slowdown in Internet traffic growth, a rise in the cost of money adversely affecting the financing of investment plans, delay on large orders, etc.
On the other hand, we are very satisfied with the performance of Access in 2024, which significantly outperformed the market, achieving double-digit sales growth (+11%).
Despite this adverse economic climate, we have continued to invest to take advantage of a new wave of massive investment by operators in new applications such as the large-scale deployment of Cloud architecture, AI, which will generate huge traffic, as well as virtual and augmented reality and cybersecurity (TLS 1.3 protocols, IPv6, etc.).
At the release of our annual results in early March 2025, we will unveil a new strategic plan, to be implemented starting 2025, which will allow us to penetrate very-fast growing market segments."
