EQS-News

Endor AG announces revenue and earnings guidance for 2024 and expects a return to a clearly positive result - Seite 2

Partly due to a shift in revenues from 2023 to 2024, the forecast for consolidated revenues for 2023 was lowered this week to a range of EUR 102 million to EUR 106 million. Orders that could not be delivered in the fourth quarter of 2023 were largely transferred to the new year and will be processed in the first quarter of 2024 according to current planning.

Endor will also return to profitability in terms of operating earnings in 2024. After the costs of restructuring, the improvement of operational processes, personnel measures and other one-off and out-of-period effects had a negative impact on earnings in 2023 in particular, and the purchasing strategy for chips was adjusted, the EBITDA margin for 2023 is still expected to be in the range of -10% to -15%. For the coming financial year, however, Endor expects a significant improvement due to the elimination of one-off effects compared to the previous year, which amount to around EUR 9.0 million in total, as well as further additional cost optimizations from the already defined program of measures amounting to around EUR 7.5 million. Among other things, logistics and material costs as well as other operating costs will be reduced. A further improvement in earnings will be achieved by streamlining the organizational structure as well as planned price optimizations and the expansion of sales channels.

Market growth of around 9 % is expected for the current financial year. The newly licensed Sony products will lead to a further boost in revenues. As a result, the revenue guidance for 2024 is on average around EUR 16.0 million above the previous year, which will lead to an EBITDA contribution of EUR 6.5 million on average in 2024. Based on the aforementioned effects, the EBITDA guidance for 2024 will improve by an average of around EUR 23.0 million compared to the previous year.

Thomas Jackermeier: "We continue to see high growth potential for Endor and have made a successful start to 2024. With our product range, we are excellently positioned in the constantly growing gaming market and, with the structural measures we have introduced, we are creating a good starting position to successfully shape our further growth trajectory. The measures we have introduced will also lead to a significant increase in the EBITDA margin in subsequent years. In addition, we will continue to work consistently on increasing profitability. The new systems will help to avoid costly mistakes."