Cancom SE stock sinks 12% amid lower earnings and market uncertainty

Shares in Cancom SE (F:COKG) fell more than 12% on Monday after the company released its 2024 annual report, which showed a decline in profits despite an increase in revenue.

Specifically, EBITDA fell slightly to €113 million from €115.7 million the year before, while EBITA fell to €59.6 million from €64.1 million. Revenue rose 14.1% to €1,737.6 million, reflecting growth in certain business areas.

The "International" segment, which includes Cancom Austria AG, saw revenue rise 55.8% to €602.9 million, while EBITDA increased to €43.3 million from €34.6 million, with an EBITDA margin of 7.2%. In contrast, the “Germany” segment remained stable with revenue of €1,134.7 million, but EBITDA fell to €69.8 million from €81.1 million, resulting in an EBITDA margin of 6.1%.

Cash flow from operations almost doubled to €192.9 million from €94.6 million the previous year. However, cash and cash equivalents at the end of the financial year decreased to €144.7 million from €222.5 million in 2023, after the company carried out a share buyback of €146.7 million and paid a dividend of €35.1 million.

The Executive Board and the Supervisory Board propose to maintain the dividend at €1 per share at the upcoming Annual General Meeting. In 2024, Cancom has focused on restructuring the organization to improve efficiency and focus on key areas such as Artificial Intelligence, Data Center & Cloud, Security & Connectivity, Internet of Things and Modern Workplace solutions.

The company sees fiscal year 2024 taking place in a volatile market context due to weak economic growth and cautious customer spending. For 2025, Cancom forecasts revenue of €1,700 million to €1,850 million, EBITDA of €115 million to €130 million and EBITA of €61 million to €76 million.

Note: This article was created and translated with the support of AI and has been reviewed by an editor.