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Beskrivning
| Land | Finland |
|---|---|
| Lista | Small Cap Helsinki |
| Sektor | Informationsteknik |
| Industri | Elektronisk utrustning |
Teleste Corporation
Stock exchange release
February 11, 2025 at 8.30 a.m. EET
TELESTE CORPORATION FINANCIAL STATEMENT RELEASE 1 JANUARY TO 31 DECEMBER 2024
TELESTE CORPORATION: IMPROVED ORDERS, NET SALES, AND ADJUSTED OPERATING RESULT. INCREASE IN ORDERS IN NORTH AMERICA.
Unless otherwise specified, the figures in brackets refer to the year-on-year comparison period.
October-December 2024 in brief
- Net sales grew by 19.0%, amounting to EUR 36.5 (30.7) million
- Adjusted EBITDA was EUR 2.1 (0.4) million, representing an increase of EUR 1.7 million, or 503.0%
- The adjusted operating result was EUR 0.8 (-1.4) million, an increase of EUR 2.3 million
- The operating result was EUR -5.7 (-2.3) million, representing a decrease of EUR 3.4 million that was primarily due to a one-time impairment on capitalised R&D expenses.
- Adjusted earnings per share were EUR 0.08 (-0.10), representing an increase of EUR 0.18
- Earnings per share were EUR -0.27 (-0.15), representing a decrease of EUR 0.12
- Cash flow from operations was EUR 1.8 (-1.9) million, representing an increase of EUR 3.7 million
- Orders received increased by 13.2% to EUR 36.3 (32.1) million
January-December 2024 in brief
- Net sales decreased by 12.4%, amounting to EUR 132.5 (151.3) million
- Adjusted EBITDA increased by 27.2%, amounting to EUR 9.2 (7.2) million
- The adjusted operating result was EUR 4.0 (1.2) million, an increase of EUR 2.8 million, or 248.2%
- The operating result was EUR -5.5 (-0.5) million, a decrease of EUR 5.0 million that was due to a one-time impairment on capitalised R&D expenses, and restructuring costs
- Adjusted earnings per share were EUR 0.20 (0.09), representing an increase of EUR 0.11
- Earnings per share decreased to EUR -0.32 (0.00)
- Cash flow from operations increased by 15.2%, amounting to EUR 12.4 (10.8) million
- Orders received decreased by 16.5% to EUR 124.9 (149.6) million.
- The order book decreased by 6.1% and amounted to EUR 118.3 (125.9) million
Outlook for 2025
Teleste estimates revenue for 2025 to be between 135 and 150 million euros, with adjusted operating profit in the range of 4 to 7 million euros. The result is expected to be primarily realized in the second half of the year. The potential implementation of import tariffs in the United States could negatively affect profitability in the short term.
Dividends
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.03 (0.00) be distributed on outstanding shares for the financial period that ended on 31 December 2024.
Segment reporting
As the company announced on 25 April 2024, Teleste reports its key financial figures according to a new segment structure starting from the first interim report of 2024. The operating segments are Broadband Networks and Public Safety and Mobility. The Group's reported segments correspond to the Group's operating segments. The Group's common functions are treated outside segment reporting.
Key figures
| EUR million | 10-12 2024 | 10-12 2023 | Change | 1-12 2024 | 1-12 2023 | Change |
| Net sales | 36.5 | 30.7 | 19.0 % | 132.5 | 151.3 | -12.4% |
| Adjusted EBITDA 1) | 2.1 | 0.4 | 503.0% | 9.2 | 7.2 | 27.2% |
| Adjusted EBITDA, % 1) | 5.8% | 1.2% | 6.9% | 4.8% | ||
| Adjusted EBIT 1) | 0.8 | -1.4 | n/a | 4.0 | 1.2 | 248.2% |
| Adjusted EBIT, % 1) | 2.3 % | -4.6% | 3.0 % | 0.8% | ||
| EBIT | -5.7 | -2.3 | n/a | -5.5 | -0.5 | n/a |
| EBIT, % | -15.6% | -7.6% | -4.2% | -0.3% | ||
| Net result for the period | -5.0 | -2.8 | n/a | -6.1 | -0.5 | n/a |
| Adjusted earnings per share, EUR 1) | 0.08 | -0.10 | n/a | 0.20 | 0.09 | 137.7% |
| Earnings per share, EUR | -0.27 | -0.15 | n/a | -0.32 | 0.00 | n/a |
| Cash flow from operations | 1.8 | -1.9 | n/a | 12.4 | 10.8 | 15.2% |
| Orders received | 36.3 | 32.1 | 13.2% | 124.9 | 149.6 | -16.5% |
| Order book | 118.3 | 125.9 | -6.1% | |||
| Net gearing, % | 46% | 52% | ||||
| Equity ratio, % | 45% | 45% | ||||
| Personnel at period-end | 619 | 750 | -17.5% |
- An alternative performance measure defined in the tables section of the report.
Comments by President & CEO Esa Harju:
"Our performance was solid and in line with our expectations in the last financial quarter of 2024. Orders received, revenue, and adjusted operating profit all saw a clear increase compared to the same period in the previous year. Despite a decrease in full-year 2024 revenue from the previous year, adjusted operating profit improved significantly, reaching the top end of our updated financial guidance. Both business segments made excellent progress, laying a strong foundation for future growth and success.
In the Broadband Networks business segment, orders increased significantly from the same period last year, with revenue and adjusted operating profit also exceeding last year's figures. The increase in orders was primarily due to achievements in North America, as announced in December, but the European market decline also appears to have stabilized. In November, we announced a multi-year cooperation agreement with Telia Finland, under which Teleste will take a full operating responsibility for the broadband and TV services carried over Telia Finland's cable network. It is also now confirmed that we will begin delivering the next-generation DOCSIS 4.0 technologies to a significant European operator in the latter half of 2025. We have successfully positioned ourselves as a leading technology supplier for multiple North American operators, and our revenue from this market is expected to continue growing.
In the Public Safety and Mobility business segment, revenue and profitability increased compared to the same period last year, although orders were lower due to the cancellation of a customer project. Several key train projects are in the commercialization phase, and significant project deliveries were scheduled for the end of the year, making the fourth quarter the highest in terms of revenue for the entire year. In November, we announced a master supply agreement with Siemens Mobility, one of the world's leading train manufacturers. Our goal is to increase our market share in passenger information and security systems supplied to train manufacturers. Volumes of video surveillance solutions and service and maintenance business were also at a good level.
In the last financial quarter, we made a substantial one-time impairment of capitalized R&D in the Broadband Networks business segment, due to uncertainties in the technology direction of the industry, as well as slower adoption of DAA technology in the market. This impairment has no impact on cash flow.
The company's cost-saving measures have greatly reduced our expenses. We also completed the restructuring of the group legal structure, whereby the Broadband Networks and Public Safety and Mobility businesses are now carved out into their own legal entities.
In 2025, Broadband Networks will focus on growing its North American business, whilst maintaining European revenue levels. Potential trade actions and import tariffs in the United States may reduce profitability in the short term, and the company is preparing a contingency plan for this. The Public Safety and Mobility business aims to achieve profitable growth across all product groups. Our renewed leadership team is fully aligned and committed to driving our strategic long-term growth objectives successfully."