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Investing.com -- Cancom SE (F:COKG) shares dropped more than 12% on Monday after the company released its 2024 annual report, showing a decline in profitability despite higher revenue.
EBITDA fell slightly to €113 million from €115.7 million the previous year, while EBITA declined to €59.6 million from €64.1 million.
Pressure on margins and uncertainty over future earnings contributed to the stock’s sharp decline.
Revenue rose 14.1% to €1,737.6 million, reflecting growth in certain business areas.
The "International" business segment, which includes Cancom Austria AG, saw revenue rise 55.8% to €602.9 million, up from €386.9 million the previous year.
EBITDA for this segment increased to €43.3 million from €34.6 million, with an EBITDA margin of 7.2%.
The "Germany" segment remained stable, with revenue of €1,134.7 million compared to €1,135.8 million in 2023. EBITDA for the German division fell to €69.8 million from €81.1 million, leading to an EBITDA margin of 6.1%.
Cash flow from operating activities nearly doubled to €192.9 million from €94.6 million the previous year.
Cash and cash equivalents at the end of the financial year stood at €144.7 million, down from €222.5 million in 2023, after share buybacks totaling €146.7 million and a dividend payment of €35.1 million.
The company plans to maintain its dividend policy, with the Executive and Supervisory Boards proposing an unchanged dividend of €1 per share at the upcoming Annual General Meeting.
During 2024, Cancom focused on restructuring parts of its organization to improve efficiency and align with key areas such as Artificial Intelligence, Data Centre & Cloud, Security & Connectivity, Internet of Things, and Modern Workplace solutions. Internal programs aimed at improving operations and resource management also advanced.
"The financial year 2024 was characterised by a volatile market environment due to the weak economic development in the private and public sectors and the associated reluctance of customers to make purchases," the company said in a statement.
For 2025, the company expects challenges and forecasts revenue between €1,700 million and €1,850 million, EBITDA between €115 million and €130 million, and EBITA between €61 million and €76 million.