CEO´s review

CEO’s review

BROADBAND NETWORKS: EXPANSION IN NORTH AMERICA, ADJUSTMENTS IN EUROPE

In our Broadband Networks business, investments in next-generation DOCSIS 4.0 technology commenced in North America. We reached a major milestone as many operators began deploying our 1.8 GHz ICON intelligent amplifiers in their networks. We have now successfully positioned ourselves as a leading technology supplier for multiple North American operators.

We maintain a positive outlook for the North American market and foresee substantial growth for our business in the upcoming years. North America, serving as our primary growth engine, presents numerous opportunities for successful market expansion and business development.

In Europe, market demand remained low, although the downturn slowed and stabilised towards the end of the year. The softness in European market was primarily due to operators’ cautious investment approach and increased macroeconomic uncertainty. Given the market situation, we implemented extensive cost-saving measures across the company and prioritised our operations accordingly. Towards the end of 2024, we received encouraging signals indicating that first DOCSIS 4.0 investments will begin also in Europe later in 2025.

PUBLIC SAFETY AND MOBILITY:
A DYNAMIC MARKET OFFERS GROWING VALUE CREATION POTENTIAL

In our Public Safety and Mobility business, we made significant progress in our strategic focus areas over the year. Revenue declined from the previous year due to the fluctuations related to the project cycles, but we significantly improved our profitability as planned. Business volume with rolling stock manufacturers increased, with several key projects entering the commercialisation phase. This demonstrates our strong expertise and competitiveness, particularly as a provider of information and security solutions for public transport.

The increasing share of lifecycle and maintenance services is helping to stabilise project delivery fluctuations and provides a solid foundation for business continuity. Intelligent video security solutions and new display technologies present significant growth potential. Teleste will focus on intelligent, real-time technologies that continue to provide added value to customers.

THE INCREASING IMPORTANCE OF SUSTAINABILITY

In 2024, sustainability took on an even more central role in our business. In February, we were awarded a gold medal in the EcoVadis business sustainability rating for the first time, demonstrating our long-term commitment to promoting responsible business practices. This recognition reflects our dedication to advancing sustainability across social, environmental, and governance aspects.

The industries in which we operate play a crucial role in supporting everyday life and societal infrastructure, aligning closely with multiple sustainability goals. Digital technologies and reliable broadband connectivity form the backbone of a networked society, bringing digital services within reach of consumers. The digitalisation of information and new intelligent innovations make public transport seamless and convenient, promoting environmentally friendly, green mobility. Smart and integrated technologies enhance people’s safety in public spaces and protect critical infrastructure, which is essential for both communities and individuals.

As a leading technology company, we aim to be at the forefront of both our industries and sustainability efforts. This means that we not only focus on what our products and technologies enable but also integrate sustainability into all our operations and our entire value chain. In doing so, we work together with our customers to build a more sustainable and secure future.

GROUP STRUCTURE REORGANISATION AND FUTURE OUTLOOK

In 2024, we successfully implemented the reorganization of our group structure. The Broadband Networks and Public Safety and Mobility business units were reorganized into separate legal entities, which clarified governance and improved reporting transparency. This reorganisation supports our strategy and provides better conditions for the independent development of our businesses.
In Broadband Networks, our longer-term prospects remain very favourable. We are strongly focused on the North American market expansion and the growth of DOCSIS 4.0 technology. In Europe, we expect demand to recover gradually, although the market is likely to remain in a transition phase towards next-generation technologies throughout 2025.

In Public Safety and Mobility, we will continue our strategic investments in public transport information and security systems. This sector presents highly interesting long-term growth opportunities, particularly in major cities where safety, environmentally friendly public transport, and smart digital solutions are key priorities.

TOWARDS A NEW DECADE

In 2024, Teleste celebrated its 70th anniversary. From the very beginning, our company has been built on deep customer understanding and uncompromising quality. Since our first in-house product—the antenna socket—Teleste has been known for its dedication to Finnish engineering excellence and a solution-driven approach that has helped our customers succeed. These traditions remain strong today and continue to guide us in building a smarter, safer, and smoother everyday life.

Over seven decades, Teleste has evolved and adapted multiple times. We have responded to changing market needs and leveraged opportunities presented by technological advancements. Over the years, we have made significant advancements, and our technologies and solutions have developed in ways that would have been unimaginable at the time of our founding. Yet, our core mission remains unchanged: to deliver high-quality engineering and to be the most trusted partner for our customers, both now and in the future.

The year 2024 was significant in many ways. We took decisive steps towards the future by implementing strategic changes and adapting our operations in the evolving market environment. These transformations required significant commitment and flexibility from our employees. I want to thank all Teleste employees for their dedication and resilience during these changes. We also extend our gratitude to our customers, partners, and stakeholders for their trust and valuable collaboration.

Esa Harju
CEO of Teleste

Source: Teleste’s Annual Report 2024