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Telecom service provider CM.com posted positive EBITDA in the second half of 2023, while gross profit in the fourth quarter even rose to record levels.

Normalized EBITDA came to 2.8 million euros in the second half of the year, that excluding 1 million euros in restructuring costs. For the first time since the first half of 2021, positive EBITDA is again being realized(pdf).

In September 2021, CM.com raised 100 million euros with a convertible bond. CM.com initially exceeded the growth forecast stated at the time of the IPO. Over 2022, however, sales growth remained stuck at 19 percent, and in the third quarter of 2023 sales suddenly dropped 8 percent. Investors began selling their CM.com shares en masse.

The convertible, which is traded on the Frankfurt Stock Exchange, must be redeemed in September 2026.

Making a profit is therefore an absolute necessity, IEX.nl recently wrote in an analysis.

For all of 2023, EBITDA was still as much as 0.9 million euros negative, not counting the 1.8 million euros in restructuring costs.

CM.com has considerable strategic challenges ahead of it. First and foremost is achieving a greater share of payment and ticket sales. In addition, much of the customer communication is being replaced by AI-like systems or AI-assisted systems.

Since January, the company has had four divisions Connect (formerly CPaaS), Engage (SaaS), Pay (Payments), and Live (Ticketing). Ticketing showed the highest growth at 29 percent.

CM.com expects a further increase in gross profit while keeping costs under control, which should ultimately lead to higher EBITDA.

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