NECKARSULM (dpa-AFX) - Bechtle AG (BC8G), a German IT service provider, Friday reported weak first-quarter profit, despite slightly higher volume. The company also confirmed its positive outlook for fiscal 2025.
On the XETRA in Germany, Bechtle shares were gaining around 0.8 percent to trade at 39.34 euros.
The company confirmed its forecast issued in March 2025, expecting business volume to rise slightly, while revenue growth may not keep pace due to the continued positive development of software business. The company anticipates earnings to fall within a range of down 5% to up 5%.
Revenue development showed a slight uptick in March, a trend that has continued into the next quarter-albeit from a relatively low base. Internationally, Bechtle also saw a noticeable rise in demand for traditional desktop computing.
CEO Thomas Olemotz said, 'We were aware the first half of 2025 would be challenging, but the developments in March and April give us confidence that we can regain momentum in the second half of the year.... The 2025 fiscal year still offers plenty of opportunities for positive development. With an improving economic outlook and growing momentum in the public sector, Bechtle is well positioned to return to more profitable growth.'
Bechtle added that uncertainty surrounding US tariff policy and its potential impact on global trade flows has further nurtured the reluctance to invest across Europe. That said, the company expects to see positive momentum later in the year, particularly in Germany.
In the first quarter, net earnings attributable to shareholders fell 33.6 percent to 38.87 million euros from 58.50 million euros last year. Basic earnings per share were 0.31 euro, lower than last year's 0.46 euro.
EBIT declined 32.1 percent to 57.16 million euros, and EBIT margin dropped to 3.9% from 5.6% a year ago.
Costs continued to rise, although the pace of the increase slowed noticeably compared to the fourth quarter of 2024.
Revenue declined 2.8 percent to 1.46 billion euros from 1.50 billion euros a year ago.
Revenues from Germany fell 5.8 percent, while International revenues grew 1.3 percent.
Business volume, however, edged up 0.8 percent to 1.967 billion euros from prior year's 1.951 billion euros.
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