Infotel (INF) H2 2024 earnings summary

Executive summary

• 2024 revenue declined 4.1% year-over-year to €294.8m amid a challenging economic environment.

• Services revenue fell 4.9%, while Software revenue grew 15.6%, driven by record IBM royalties and strong Orlando suite performance.

• Net income increased 2.3% to €18.5m, with net margin improving to 6.3% of revenue.

• Board proposes a €2 per share dividend for 2024, reflecting confidence in future prospects.

Financial highlights

• EBITDA was €34.9m, down 3.1% year-over-year, representing 11.6% of revenue (+1.3 pts).

• Recurring operating margin rose to 9.3% of revenue (+0.4 pts), despite a slight decrease in absolute value.

• Cash increased 13.4% to €109.9m; no financial debt at year-end.

• Shareholders' equity rose to €123.8m from €117.8m.

Outlook and guidance

• Slight growth and continued profitability expected in 2025, with stable activity in H1 and gradual recovery in H2.

• Software segment expected to maintain strong growth; sector visibility mixed, with Banking/Insurance showing early recovery signs.

• 2026 revenue target of €380m now contingent on external growth; 10% recurring operating margin target unchanged.