EKINOPS (EKI) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue reached €30.4m, up 9% year-over-year and 4% sequentially, marking the highest quarterly revenue since Q2 2023.

• Nine-month 2024 revenue totaled €87.9m, down 11% compared to the same period last year.

• Growth in Access solutions and a rebound in France offset declines in Optical Transport and international markets.

Financial highlights

• Q3 2024 revenue increased 9% year-over-year and 4% sequentially; at constant exchange rates, up 10%.

• Nine-month revenue declined 11% year-over-year, unchanged at constant exchange rates.

• Access solutions sales rose 8% over nine months, while Optical Transport sales fell 34%.

• Software & Services accounted for 16% of total revenue, up from 15% a year earlier.

Outlook and guidance

• Q3 revenue improvement driven by easing Access inventory and initial deliveries of new 800G Optical Transport product.

• Operators remain cautious in investment plans due to market overcapacity and slow internet traffic growth.

• Quarter-on-quarter growth objective achieved, with approximately €1m added each quarter from Q1 to Q3.