Tech Biz: Bechtle Warily Eyes 2025 - Hope for Recovery Remains
Caution Prevails for 2025 Outlook - Potential Revival In Sight - Cautious Outlook for 2025: Possible Recovery Remains Debatable
Listen up, folks! The IT services juggernaut, Bechtle, is feeling a tad unsettled about 2025. That's right, you heard it! The CEO, Thomas Olemotz, dropped a bombshell at the earnings press conference. Word on the street is, the economy's sluggish state and the public sector's pinched purse strings have got 'em feeling a bit wary. And it's not all sunshine and roses, 'cause the first half of the year's looking mighty shaky.
So, what does this mean for the turnover and operating profit? Well, they could swing either way in the full year. Harsh, ain't it?
The current scenario's a doozy. SME customers are strung tight, and, believe it or not, concrete orders from the public sector are on hold due to Germany's political shake-up. "We're in uncharted territory here," Olemotz said. "Never in our history have we seen such a high volume of framework contracts in the public sector at the start of the year and, at the same time, so little utilization of these contracts."
Big deal, right? But wait, business with the public sector is no joke. It contributes around a whopping quarter to Bechtle's group turnover, making it absolutely crucial to their operations.
So, what's the forecast for 2025? Well, Olemotz expects the business volume to either stay the same song or grow by a cool five percent. And as for the turnover, it could slide or soar by up to three percent, all while the software business gets a thumbs-up but not a full-on applause due to certain accounting standards. Ring a bell? Yep, that means the operating result could either dip or jump by up to five percent in 2025.
Last year, the business volume increased by two percent to a whopping 7.9 billion euros, boosted by a stellar software performance. But alas, the turnover took a hit, falling almost two percent to 6.3 billion euros, despite a final-quarter recovery. The operating result plummeted by nearly eight percent to 345 million euros, but Bechtle refused to bat an eye, sticking to their published key figures for 2024, as shared back in February.
Ouch! The net profit attributable to shareholders dropped by a painful 7.5 percent to 245.5 million euros. But guess what? They're still doling out a steady dividend of 0.70 euros per share, proving they're confident about the future business landscape.
While the payout ratio's a tad above their long-term dividend strategy, don't worry, this ol' smiley confidence is a signal that they're bullish about Bechtle's future business prospects. So, here's to hoping for a rosy 2025 for our IT chums over at Bechtle!
The sluggish economy and reduced spending by the public sector have added to Bechtle's concerns for 2025, as these sectors contribute significantly to their group turnover. The Commission's communication on the future of the European Union might provide some insights into economic improvements that could benefit Bechtle. Despite a challenging first half of the year, Bechtle's CEO, Thomas Olemotz, expects business volume to either remain stable or grow by 5% in 2025, with the turnover and operating result potentially swinging by up to 3% and 5%, respectively.
