A broadband technology company Telest gives a result warning. The company is lowering its guidance due to low demand in European online business.
According to the new guidelines, Teleste estimates 2024 turnover to be 120–135 million euros and adjusted operating profit to be 1–4 million euros.
According to previous guidance, the company expected 2024 turnover to be 140–150 million euros and adjusted operating profit to be 3–6 million euros.
Last year, Teleste’s turnover was 151.3 million euros and the adjusted operating result was 1.2 million euros.
According to the company, the most significant reason for the updated guidelines is the continuation of European market demand for the Broadband Networks business at a lower than expected level for longer than anticipated.
According to Teleste, delivery volumes in North America have started to rise, but do not fully replace the reduced volume outlook in Europe. There is still uncertainty regarding the timing of deliveries and projects at the end of the year.
The company says it has added measures to improve cost efficiency and prioritize tasks in all its operations. According to Teleste, the total amount of permanent cost savings implemented is more than eight million euros annually.
As a new measure, the company says it will lay off part of its staff during the rest of the year. Investments in the North American market will be continued in accordance with the strategy.
Source: www.arvopaperi.fi
