Ascom's 2024 Preliminary Financial Results: Key Insights
Overview of Ascom's Financial Performance in 2024
Announcement
Baar (Switzerland) — Ascom has reported preliminary unaudited figures for the fiscal year 2024, indicating a revenue of CHF 286.7 million. This demonstrates a slight decline of 1.6% when adjusted for constant currencies, along with an EBITDA margin of approximately 7.5%.
Revenue Insights
In a continuously challenging market context, Ascom's net revenue totaled CHF 286.7 million for 2024, down from CHF 297.3 million in 2023. The decrease reflects a 1.6% dip in constant currencies and a 3.6% decline in actual currencies compared to the prior year, as indicated by the preliminary figures.
Performance Across Key Markets
Revenue performance varied significantly across different regions. Notably, the Nordics, DACH (Germany, Austria, and Switzerland), the Netherlands, and Italy exhibited strong results. In contrast, areas such as the UK, OEM businesses, the USA, Canada, France, and Spain faced challenges, showing weaker market engagement and delays in project delivery during the last quarter of 2024. Consequently, these issues have led to a change in management within these regions, with new Managing Directors taking charge as of January 2025.
Order Trends
Ascom witnessed incoming orders of CHF 307.4 million for 2024, compared to CHF 318.6 million in 2023. This represents a decrease of 1.5% at constant currencies and 3.5% by actual currencies. However, the order backlog increased to CHF 301.5 million by the close of 2024, up from CHF 276.4 million at the end of the previous year.
EBITDA Margin Analysis
Reflecting investments in Research & Development (R&D) alongside increased marketing and sales efforts, Ascom's EBITDA margin has contracted to around 7.5% for 2024, down from 10.1% in 2023. This decline is coupled with heightened depreciation and amortization costs originating from substantial investments in R&D and Enterprise Resource Planning (ERP) systems. Consequently, projected group profits for 2024 are expected to dwindle significantly, estimated between CHF 3 to 4 million, which also accounts for a non-cash one-off adjustment of roughly CHF 2 million.
Financial Stability and Future Prospects
Despite facing financial challenges, Ascom maintains a solid balance sheet, with a net cash position of CHF 18.6 million at the end of 2024, compared to CHF 24.7 million the previous year. Their equity ratio remains around 39%, showing a stable financial footing.
Upcoming Annual Media Conference
Ascom is set to provide more comprehensive details regarding its financial performance and the 2024 Annual Report, including dividend proposals and future guidance, at the Annual Media Conference scheduled for mid-March of 2025.
Frequently Asked Questions
What were Ascom's total revenues for 2024?
Ascom reported total revenues of CHF 286.7 million for the fiscal year 2024.
How did Ascom's revenue change compared to 2023?
The revenue for 2024 declined by 1.6% at constant currencies compared to the revenue of CHF 297.3 million in 2023.
What factors contributed to the decline in revenue?
The decline was influenced by lower market traction and project delays, particularly in the USA, Canada, and some European markets.
When is the Annual Media Conference scheduled?
The Annual Media Conference is set to take place in March 2025, where detailed financial results and future guidance will be discussed.
What is Ascom's current cash position and equity ratio?
Ascom's net cash position at the end of 2024 is CHF 18.6 million, with an equity ratio of approximately 39%.
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