Cancom’s shares fell over 1% to €23.15 after the Munich-based IT firm reported disappointing half-year results, swinging from a €7.1 million profit last year to a €424,000 loss. The downturn reflects severe challenges in its core German market, where mid-sized clients are slashing IT spending. Quarterly revenue dipped 0.4% to €393.2 million, while operating profit (EBITDA) collapsed by 35% to €15.7 million. Management had already warned of weak preliminary figures in July and downgraded its full-year outlook.
Restructuring Efforts Underway
Germany’s revenue plummeted by €58.6 million in H1, with operating profit nearly halving to €13.7 million. The company is implementing cost-cutting measures, including €4 million in restructuring expenses, but international growth (up to €304.2 million) fails to offset domestic declines. Cancom maintains its 2024 targets of €1.65–1.75 billion revenue and €100–110 million EBITDA, though liquidity shrinking from €144.7 million to €85.1 million raises concerns. Investors remain wary as the stock struggles to recover.
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