Planetel (PLN) H1 2024 earnings summary

Executive summary

• Consolidated revenues reached €18.54 million for the first half of 2024, up 16% year-over-year, driven by organic growth and the first-time consolidation of Trivenet S.r.l. and Connetical S.r.l.

• EBITDA rose 20% year-to-date to €4.6 million (23% of production value), while EBIT increased 38% to €1.2 million (6% of production value).

• Net profit for the period was €0.6 million, up 26% compared to the same period in 2023.

• Cloud and Data Centre earnings surged 59% year-over-year to €4.0 million.

• The group continued its expansion in fiber infrastructure, customer base, and M&A activity, notably acquiring Connetical S.r.l. in April 2024.

Financial highlights

• Revenues grew by €2.56 million (+16%) year-over-year, with recurring revenues accounting for 91% and a churn rate of 3.8%.

• EBITDA margin remained stable at 23%, while EBIT margin improved to 6%.

• Net financial position was negative €13.04 million, essentially unchanged from December 2023.

• Investments in the first half totaled €3.22 million, mainly for FTTH fiber network expansion.

• Cash and cash equivalents increased to €7.33 million at June 30, 2024.

Outlook and guidance

• The group expects further integration of recent acquisitions and continued network expansion, with the completion of the Vodafone network project and the launch of new international fiber routes.

• Ongoing focus on cloud and cybersecurity services, with new infrastructure and certifications to support growth in public administration and enterprise markets.

• Ongoing scouting for new acquisitions, especially in Veneto and Lombardy regions.

• No direct exposure to geopolitical risks from Russia-Ukraine or Israel-Palestine conflicts.