Ascom (ASCN) H1 2024 earnings summary

Executive summary

• Revenue declined 2.7% at constant currencies (5.4% in CHF), mainly due to shortfalls in UK, France & Spain, and OEM, while DACH, Nordics, and Netherlands performed as expected.

• EBITDA margin held steady at 7.4% (vs. 7.5% prior year) despite lower revenue, supported by cost containment; group profit CHF 2.9 million, down from CHF 5.1 million due to higher depreciation.

• Order backlog rose 7% year-over-year to CHF 311.5 million, with about 35% deliverable in H2 2024, supporting expectations for a stronger second half.

• Order intake was flat in constant currency but increased 13-14% sequentially from H2 2023, especially strong in USA & Canada and Rest of World (up ~20%), driven by healthcare.

• Strategic progress made toward healthcare platform leadership, with new platform launches and major project wins in Italy, US, Norway, and Ireland.

Financial highlights

• Net revenue for H1 2024 was CHF 142.1 million, down 5.4% year-over-year (2.7% at constant currencies).

• EBITDA CHF 10.5 million (7.4% margin), EBIT CHF 4.0 million (2.8% margin), net profit CHF 2.9 million.

• Gross profit margin held steady at 47.3% (vs. 47.5% in 2023); earnings per share CHF 0.08.

• Net cash position at CHF 16.5 million; equity ratio at 36.7%.

• CapEx increased 51% to CHF 9.2 million for R&D, ERP rollout, and facility refurbishment.

Outlook and guidance

• Full-year 2024 net revenue expected to be in line with previous year at constant currencies.

• EBITDA margin guidance revised to 9–10% for 2024, reflecting a more prudent outlook due to slower H1 and market uncertainties.

• Management expects a stronger H2 2024, supported by backlog conversion and add-on business.

• Platform convergence, SaaS/cloud offerings, and operational efficiency expected to drive future growth.