PARIS - Ekinops (Euronext Paris: EKI), a global supplier of telecommunications solutions, disclosed its annual financial results for the year ended December 31, 2023, revealing a slight increase in consolidated revenue. The company registered a 1% year-over-year growth, with revenues rising from €127.6 million in 2022 to €129.1 million in 2023.
Despite the overall annual growth, Ekinops faced a challenging fourth quarter with a 4% decline in revenue compared to the same period in the previous year. The company cited a deteriorating market environment and decreased demand for Access equipment as contributing factors. However, sequential growth was noted in Q4 2023, with a 9% increase from the third quarter.
The company's Optical Transport solutions experienced significant advancement, boasting a 27% revenue increase in 2023. This growth was particularly strong in France and the EMEA (Europe, excluding France, Middle East, and Africa) region, driven by the demand for Wavelength Division Multiplexing (WDM) solutions and new customer acquisitions, including a multi-year contract with Deutsche Glasfaser in Germany.
However, sales of Access solutions declined by 15% over the year, with a sharp 25% drop in the second half of 2023. Ekinops attributed this downturn to a reduction in client investment activity, high inventory levels among major operators, and more challenging financing conditions.
Software & Services, representing 17% of the company's 2023 revenue, saw a 12% increase, propelled by sales of network virtualization and SD-WAN solutions and services.
Internationally, Ekinops experienced an 8% growth in sales, despite a contraction in the French market, where revenues fell by 11%. North America and the EMEA region recorded revenue increases of 6% and 23%, respectively. However, the Asia-Pacific market witnessed a 63% decline.
Ekinops also confirmed its EBITDA margin target for 2023, ranging between 13% and 17%. Chairman and CEO Didier Brédy commented on the past year's economic challenges impacting the Access business but noted significant outperformance in the Optical Transport market. He expressed optimism for H1 2024, anticipating a revenue increase and a potential rebound in Access equipment sales.
This report is based on a press release statement from Ekinops.
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