Cancom Stock Down On Weak FY22 Profit, Maintains Dividend; Sees Growth In FY23

Cancom Group (CNCXY.PK) shares were losing nearly 9 percent in German trading after the IT service provider reported weak profit in its fiscal 2022. Looking ahead for fiscal 2023, the company projects higher EBITDA and revenues.

For fiscal 2022, profit before income taxes fell to 47.28 million euros from last year’s 74.84 million euros.

Profit after taxes was 30.75 million euros, sharply lower than 273 million euros a year ago that benefited by gain from discontinued operations.

Earnings per share plunged to 0.86 euro from 7.08 euros a year ago. Earnings per share from continuing operations was 0.90 euro, compared to 1.26 euros last year.

EBITDA fell 14.4 percent to 104.9 million euros, and EBITDA margin dropped to 8.1 percent from 9.5 percent a year ago.

Group revenue edged up 0.5 percent to 1.293 billion euros from prior year’s 1.286 billion euros. The fourth-quarter revenue grew to 367.8 million euros from 353.2 million euros last year.

Business volume increased 2.7 percent to 1.73 billion euros.

Further, the Executive Board has proposed the distribution of a stable dividend of 1.00 euro per share.

Looking ahead for fiscal 2023, CANCOM said it is starting the new year with a high order backlog and is also recording a good level of incoming orders at the beginning of 2023.

For the year, the company projects EBITDA of 114 million euros to 124 million euros, and revenue of 1.32 billion euros to 1.39 billion euros.

In Germany, Cancom shares were trading at 28.82 euros, down 8.51 percent.

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