Inside information, profit warning: Teleste lowers its 2024 financial guidance, due to low demand in European Broadband Networks business
Teleste Corporation
Inside information
September 16, 2024, at 15:00 EET
INSIDE INFORMATION, PROFIT WARNING: TELESTE LOWERS ITS 2024 FINANCIAL GUIDANCE, DUE TO LOW DEMAND IN EUROPEAN BROADBAND NETWORKS BUSINESS
Teleste Corporation lowers its guidance for the financial year 2024.
New guidance for financial year 2024
Teleste now estimates that the net sales in 2024 will amount to EUR 120–135 million and that the adjusted operating result in 2024 will be EUR 1‒4 million.
The main reason for the updated guidance is the continued lower-than-expected demand in the European market for the Broadband Networks business. North American delivery volumes have started to grow, but they will not fully compensate for the volume outlook in Europe. There is also still uncertainty regarding the timing of deliveries and projects for the rest of the year.
Previous guidance for 2024
In its interim report on 14.8.2024, the company specified its financial guidance for 2024.
Teleste estimated then that net sales in 2024 would amount to EUR 140-150 million and that the adjusted operating result in 2024 would be EUR 3-6 million.
Measures
The company has increased measures to improve cost efficiency and to prioritize tasks in all its operations. The total amount of permanent cost savings implemented is over 8 million euros annually. As a new measure, the company will temporarily reduce working hours for some of its European personnel during the rest of the year. Investments in the North American market will not be affected and will be continued according to our strategy.
TELESTE CORPORATION
Esa Harju
CEO
Additional information:
Esa Harju, tel. + 358 2 2605 611
Distribution:
Nasdaq Helsinki
Main Media
www.teleste.com
About Teleste
Teleste offers an integrated product and service portfolio that makes it possible to build and run a better networked society. Our solutions bring television and broadband services to you, secure your safety in public places and guide your use of public transport. With solid industry experience and drive for innovations, we are a leading international company in broadband, security and information technologies and related services. We connect with our customers through a global network of offices and partners. In 2023, Teleste's net sales reached EUR 151.3 million and it had approximately 800 employees. Teleste is listed on Nasdaq Helsinki. For more information, visit www.teleste.com.