EKINOPS (Euronext Paris - FR0011466069 - EKI), a leading provider of telecommunication solutions for telecom operators and enterprises, reports its Q2 2023 revenue (April 1 – June 30 2023).

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New three-month record sales figure in Q2 2023: 39.2m€, up +10%

Ekinops reported consolidated revenue of 39.2m€ in Q2 2023, up +10% Y-o-Y. As a reminder, Q2 2022 recorded strong growth of +29%. This year’s quarterly growth at constant exchange rates was 11%.

Compared to Q1 2023 (31.9m€), Q2 sales were up +23%, reflecting buoyant activity.

Over H1 2023, revenue amounted to 71.0m€, representing overall growth of +12% vs. H1 2022, which was a particularly challenging basis for comparison (+25% growth last year).  At constant exchange rates, half-year growth was +12%.

Growth of +41% for Optical Transport in H1 2023

In continuity with FY 2022, Optical Transport activity continued its strong growth trajectory, achieving a further jump of +41% in H1 2023 compared to the same period last year (vs. +32% in Q1 2023 and +49% in Q2 2023), thanks to the success of WDM solutions and the appeal of OTN technology both in the US and Europe.

Access solutions were down by -5% over H1 2023 (vs. +21% in H1 2022), mainly due to lower sales in Asia-Pacific. Access sales were virtually flat in France (-1%), but up +7% in EMEA.

Software & Services revenue, which accounted for 14% of Group revenues in H1 2023 (vs. 15% over full year 2022), showed slight growth over the period (+1%).

+42% sales growth in North America and a +13% rebound in EMEA

International growth came in at +14% in H1 2023. Sales outside France represented 66% of the Group's total revenue, compared with 65% a year earlier.

North America reported revenues of 18.2m€, up by a robust +42% year-on-year (identical in US dollar terms), driven by strong demand for Optical Transport solutions. This key strategic region represented 26% of Group revenue in H1 (vs. 20% a year earlier).

After a dip at the start of the year (-7% over Q1 2023), the EMEA region (Europe - excluding France - Middle East & Africa) has returned to growth, posting a +13% increase over H1 2023. This recovery was mainly driven by solid growth in sales of Optical Transport solutions in the region, which account for 39% of sales.

Business in Asia-Pacific was down -65% at mid-year, following a +80% growth in H1 2022. Ekinops generated 2% of its revenue in Asia-Pacific in H1 this year.

Lastly, in its domestic market, Ekinops posted H1 revenue growth of +9% vs. the year-earlier period, particularly driven by a doubling in sales of Optical Transport solutions. Ekinops generated 34% of its H1 revenue in France.

Didier Brédy, Chairman and CEO of Ekinops said:

"Ekinops delivered a good H1 2023, fully in line with our expectations. This robust H1 performance, achieved despite the very challenging comparative figures after an exceptional 2022, comes in an overall less buoyant market context and a weaker economic environment. Despite this, we expect H1 sales to show good profitability in terms of gross margin.

Visibility is weaker for H2 given the economic environment, and Ekinops is making it a priority to ramp up its commercial activity across all its geographies."

Reminder of 2023’s guidance

Halfway through 2023, Group’s guidance remains unchanged:

  • revenue growth of over +12%;
  • EBITDA margin between 15% and 19%, including human and technological investments to support its growth.

In terms of external growth, Ekinops maintains its ambition to complete a transaction during the year, favoring a non-dilutive source of financing.

2023 financial calendar

Date Release
July 27, 2023 H1 2023 results
October 11, 2023 Q3 2023 revenue
January 10, 2024 FY 2023 revenue

All press releases are published after Euronext Paris market close.

About Ekinops

Ekinops is a leading provider of open, trusted and innovative network connectivity solutions to service providers around the world. Our programmable and highly scalable solutions enable the fast, flexible, and cost-effective deployment of new services for both high-speed, high-capacity optical transport as well as virtualization-enabled managed enterprise services.

Our product portfolio consists of three highly complementary product and service sets: EKINOPS360, OneAccess and Compose.

  • EKINOPS360 provides optical transport solutions for metro, regional and long-distance networks with WDM for high-capacity point-to-point, ring, and optical mesh architectures, and OTN for improved bandwidth utilization and efficient multi-service aggregation.
  • OneAccess offers a wide choice of physical and virtualized deployment options for access network functions.
  • Compose supports service providers in making their networks software-defined with a variety of software management tools and services, including the scalable SD-WAN Xpress and SixSq Edge-to-Cloud solutions.

As service providers embrace SDN and NFV deployment models, Ekinops enables future-proofed deployment today, enabling operators to seamlessly migrate to an open, virtualized delivery model at a time of their choosing.

A global organization, Ekinops (EKI) - a public company traded on the Euronext Paris exchange operates on four continents.

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ISIN Code : FR0011466069
Mnemonic code : EKI
Number of shares: 26,795,049