Trifork Group Adjusts Financial Guidance for 2024 Profits
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Trifork Group Revises Financial Guidance for 2024
Trifork Group AGCompany announcement no. 29/2024
Schindellegi, Switzerland
The Trifork Group has announced a revision of its financial outlook for the year 2024. After reviewing the second quarter's performance and analyzing updated forecasts from its subsidiaries, the company has made adjustments to its guidance for the full year.
Updated Financial Expectations
Based on the latest insights, Trifork expects the following financial outcomes for 2024:- Revenue is anticipated to be between EURm 215-220, a decrease from the previous expectation of EURm 220-230, which corresponds to a growth rate of 3.4-5.8%. Inorganic revenue is still projected at EURm 5.4.
- Adjusted EBITDA for the Trifork Segment is expected to range between EURm 31-34, down from an earlier forecast of EURm 34-38.
- EBIT for the Trifork Group is projected to be in the range of EURm 14-17, which is a reduction from the previous range of EURm 17-21.
Segment Performance Overview
In the Inspire segment, revenue for Q2 increased by 8.6% to EURm 2.4, maintaining a steady performance. However, the adjusted EBITDA for this segment stood at EURm 0.0. Conversely, the Build segment continues to face sluggish market conditions, with a slight revenue increase of 0.1% to EURm 37.2 and an adjusted EBITDA margin of 13.0%. In the Run segment, Q2 revenue saw a decline of 19.2% to EURm 12.7 compared to the same quarter last year, primarily due to a loss of EURm 3.2 in revenue from non-core third-party licenses and hardware sales. Excluding this loss, the core business growth rate for Run (comprising Licenses & Support, Hosting, and Security) was a modest 1.5%, with an adjusted EBITDA margin of 19.2%.CEO's Remarks
Comment from CEO Jørn Larsen:“The second quarter and first half of 2024 have been more challenging than we originally anticipated. For private enterprises, we have yet to secure new engagements that offset the revenue losses from previous engagements that were postponed or terminated. Overall, the revenue for the first half of 2024 remained comparable to the levels in 2023. However, I am encouraged by our recent successes in our public sector engagements in Denmark. We have been winning and delivering on new contracts that counterbalance reductions in scope from other projects. Although profitability is still below our targets, we are making progress according to plan with our strategic initiatives. These include enhancing sales of our proprietary software products, refining our conference operations, and reorganizing our Cyber Protection teams. While we are keen on expanding our business development efforts to broaden our sales pipeline, we are also focusing on identifying efficiencies to manage costs. Additionally, we will pursue mergers and acquisitions despite the current sluggish market conditions. I remain optimistic about the medium- and long-term outlook for Trifork Group, despite 2024 not aligning with our expectations.”
Upcoming Financial Reporting
Trifork is scheduled to release its comprehensive Q2 and half-year report shortly. The announcement is set for 07:00 CEST, with a results presentation and Q&A session to follow at 11:00 CEST, featuring CEO Jørn Larsen and CFO Kristian Wulf-Andersen. A recording of the presentation will be made available on the company's investor website.Contact Information
For inquiries, the following contacts are available: InvestorsFrederik Svanholm, Group Investment Director & Head of Investor Relations
frsv@trifork.com, +41 79 357 7317
Media
Peter Rørsgaard, CCO Fintech & Head of Press Relations
pro@trifork.com, +45 2042 2494
About Trifork Group
Trifork is a pioneering technology partner for enterprise and public sector clients, employing 1,273 personnel across 74 business units in 15 countries. The group operates in six business areas: Digital Health, FinTech, Smart Building, Smart Enterprise, Cloud Operations, and Cyber Protection. Trifork invests in and develops technology companies through its R&D arm, Trifork Labs. The group also manages popular software conference brands GOTO and YOW!, along with an extensive tech community boasting over a million online subscribers and 72 million video views. Trifork Group AG is publicly traded on Nasdaq Copenhagen. Learn more at trifork.com.Frequently Asked Questions
1. What is Trifork Group's new revenue guidance for 2024?
Trifork Group now expects revenue to be in the range of EURm 215-220 for 2024.
2. How did the different segments of Trifork perform in Q2?
In Q2, the Inspire segment had an 8.6% revenue increase, Build had a slight growth of 0.1%, and Run saw a 19.2% decline in revenue.
3. What factors contributed to the decline in the Run segment?
The decline in the Run segment was primarily due to a loss of EURm 3.2 from non-core third-party licenses and hardware sales.
4. What strategic initiatives is Trifork focusing on amid challenges?
Trifork is concentrating on increasing proprietary software sales, optimizing conference operations, and reorganizing teams in Cyber Protection.
5. Who can be contacted for more information about Trifork Group?
For investor inquiries, contact Frederik Svanholm at frsv@trifork.com. For media inquiries, contact Peter Rørsgaard at pro@trifork.com.
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