Ekinops Reports FY 2024 Results with Notable Growth in EBITDA Margin and Operating Cash Flow Generation

Ekinops Announces FY 2024 Financial Results

Ekinops, a leading telecommunications solutions provider, has recently unveiled its financial results for FY 2024, ending December 31, 2024. Despite facing challenges in the market, the company demonstrated resilience with a significant EBITDA margin of 15.3% and strong operating cash flow generation.

In FY 2024, Ekinops reported a consolidated revenue of €117.7 million, down by 9% compared to the previous year. The downturn was mainly influenced by a considerable decline in the Optical Transport business, which saw a 30% reduction in revenue due to a tough market environment and operators' cautious investment strategies. Conversely, the Access solutions segment exhibited robust growth, achieving an 11% increase, which was bolstered by a rebound in business activities across France and other European markets.

Ekinops' gross margin for the year stood at €64.5 million, resulting in an impressive gross margin percentage of 54.8%, up from 52.1% the previous year. This reflects the company's effective cost management and strategic focus on higher-margin access and software services. The share of revenue generated from Software Services climbed to 18%, indicating a shift towards more integrated offerings in their product lineup.

Operating expenses were reduced by 7%, showcasing Ekinops' commitment to cost control amidst a challenging economic backdrop. The decline in operating costs was partly due to a strategic restructuring in research and development, which saw a 10% reduction in related expenses.

Operating income for FY 2024 was reported at €-5.0 million, down from €3.6 million in FY 2023, primarily due to drastic measures taken following the closure of its Brazil operations. Despite these challenges, Ekinops managed to generate a robust operating cash flow of €20.8 million, up from €13.5 million the prior year. This increase indicates strong operational efficiency and a positive trend in working capital management.

The company concluded 2024 with a net cash position of €29.5 million, an improvement from €25.8 million in 2023, emphasizing its financial deleveraging efforts. This favorable cash position strengthens Ekinops' capacity to invest in future growth initiatives.

In terms of sustainability, Ekinops made significant strides in enhancing its corporate social responsibility strategies, preparing for the new Corporate Sustainability Reporting Directive (CSRD). The company reported a 15% reduction in greenhouse gas emissions, surpassing its previous year's achievements. Ekinops has set ambitious sustainability targets, aiming for a 33% reduction in CO2-equivalent emissions by 2030 and intends to utilize 100% renewable electricity across its European sites by 2026.

Ekinops is also excited to announce its new strategic plan named 'Bridge,' aimed at revitalizing its growth trajectory by focusing on faster-growing market segments. The plan is expected to solidify Ekinops' position as a leading integrated telecommunications provider. By leveraging its robust financial standing and innovative research and development capabilities, the company aims to achieve a double-digit growth rate and significantly increase its revenue share from software services by 2028.

Looking ahead, Ekinops is optimistic about market recovery in 2025 and plans to roll out new high-value products, thus significantly expanding its addressable market. As the company embarks on implementing the Bridge plan in FY 2025, it will look to capitalize on emerging market demands and foster strong customer relationships, ensuring it remains at the forefront of the telecommunications industry.

Overall, Ekinops' FY 2024 results highlight its commitment to navigate market challenges while prioritizing operational efficiency, financial health, and sustainability – positioning it for a promising future in the telecommunications sector.