Infotel (INF) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €149.16M, down 5.9% year-over-year, underperforming sector growth forecasts and reflecting resilience in a cautious market.

• Operating income fell 22.9% to €10.33M, with net income at €7.97M (5.3% margin), compared to €9.46M (6.0%) in H1 2023; net income Group share reached €8.0M, a decrease of 15.7%.

• Cash position remains strong at €85.81M as of June 30, 2024, after dividend payout.

• Workforce increased by 171, with 3,288 employees at period end; intercontract rate low at 3.6%-3.7%.

• Acquisition of 30% stake in Altanna for €700K-€0.8m opens new growth avenues in infrastructure, cloud, and security.

Financial highlights

• Services segment (96%-96.1% of revenue) declined 6.0%-6.1% to €143.37M; Software segment stable at €5.79M-€5.8m.

• Banking sector remains largest contributor (37.4% of revenue), though its share fell 10.5%; industry and services sectors increased their share.

• EBITDA was €15.3m, down 16.6% year-over-year; operating margin at 6.9% (down from 8.5% in H1 2023).

• EPS at €1.15, down from €1.37 in H1 2023.

• Net financial income improved to €872K from €506K year-over-year.

Outlook and guidance

• Second half expected to be more favorable, with a goal to return to growth and improved operating profitability.

• Growth anticipated from new contracts in Services and Software, especially with Orlando and Airbus, and expansion in the US and Canada with increased AI-driven offerings.

• Altanna investment positions the group in high-potential infrastructure, cloud, and security markets.