Secunet Security Networks (YSN) Q2 2024 earnings summary

Executive summary

• Sales revenue declined 5% year-over-year to €144.3 million in H1 2024, with both Public and Business Sectors contributing to the decrease.

• EBIT dropped 64% to €1.4 million, impacted by the absence of prior year one-time income and higher R&D and administrative costs.

• Net income for H1 2024 was €1.0 million, down 59% year-over-year; EPS was €0.16.

• Order intake rose 15% to €169.6 million, and the order book increased 13% to €216.5 million, indicating strong future demand.

Financial highlights

• Gross profit increased 19% to €28.6 million despite lower sales, as cost of sales fell 9%.

• Cash flow from operating activities improved to €3.7 million from -€3.0 million in H1 2023.

• Cash and cash equivalents decreased to €21.1 million, mainly due to a €15.3 million dividend payment.

• Investments in intangible assets and property, plant, and equipment rose to €5.6 million.

Outlook and guidance

• Full-year 2024 sales revenue expected around €390 million, with EBIT forecast at €42 million, confirming previous guidance.

• Q4 is anticipated to be the strongest quarter due to public sector contract seasonality.

• Risks from German federal budget debates remain but were offset by increased sales activities.