Vantiva (VANTI) Trading Update summary

Strategic achievements and business transformation

• Successfully integrated CommScope's Home Networks business, closing most transition agreements and aligning systems and organizations, enabling synergy extraction and achievement of guidance.

• Completed or agreed to the sale of the SCS business, refocusing entirely on connectivity solutions and modifying segment presentation.

• Achieved all 2024 financial targets for the third consecutive year, despite a soft first half and higher initial costs, with acceleration in the second half.

• Cost-saving measures and operational discipline led to a leaner, more efficient organization, with cumulative cost synergies from Home Networks integration expected to exceed €200 million by 2026.

• Leadership in key market segments reinforced by Home Networks acquisition and continued innovation in Wi-Fi 7, Fiber, and 5G-FWA.

Financial performance and outlook

• Revenue reached €1,865 million in 2024, up 19.3% year-over-year, driven by Home Networks integration.

• Adjusted EBITDA was €104 million (6.8% increase), with a margin of 5.6%–5.8%; second-half margin exceeded 7% due to cost savings.

• Free cash flow after financing and tax (before restructuring) turned positive at €33 million, a €73 million improvement from 2023.

• Net debt at year-end stood at €459 million, with total liquidity of €94 million, including €30 million in cash and €64 million in undrawn credit.

• 2025 revenue is expected to be in line with 2024, with a targeted Adjusted EBITDA above €150 million and positive free cash flow.

Market dynamics and operational highlights

• Q4 saw strong sequential growth, mainly from genuine customer demand rather than catch-up from prior disruptions.

• Key growth areas include DOCSIS, fiber, Wi-Fi 7, and 5G fixed wireless access, with commercial launch of Wi-Fi 7 products planned for H1 2025 and multiple field trials completed.

• Strong commercial success for Wi-Fi 7, Fiber, and FWA 5G products in North America, Asia, and parts of Europe, while LATAM sales declined due to commoditized fiber demand and a soft video CPE segment.

• Actively managing tariff risks by leveraging global contract manufacturers and diversifying manufacturing locations.

• Competitive landscape remains aggressive but scale from the Home Networks acquisition has improved positioning.