AeTECH Announces Disappointing Q4 2024
AeTECH has released its fourth-quarter 2024 figures, revealing a 55.8% decline in operating income to 0.841 MTND. The company's core business, Solutions, has also reported a negative figure of -0.128 MTND. Advanced E-Services revenue stood at 0.962 MTND, down from 1.205 MTND the previous year. The distribution of mobile phone recharge cards was impacted by the decrease in new SIM card activations, affected by the new regulations of the National Telecommunications Institute.
Full-Year Results
For the entire year, operating income totaled 4.596 MTND, a 26.7% decline year-over-year. Both business branches contributed to this trend, particularly with a 72.2% drop in Solutions' revenue, citing the lack of concrete markets, resulting from persistent delays in accessing financing and the unfavorable economic climate, both nationally and internationally.
Financial Performance
Operating expenses, excluding depreciation and provisions, followed the same trend, decreasing by 29.3% to 4.801 MTND. However, EBITDA remains negative at -0.205 MTND. Financial charges decreased by 26.8% to 0.354 MTND.
Outlook
AeTECH appears to be heading towards an annual loss. The first half of the year was marked by a loss of -0.514 MTND. The company needs recapitalization to correct its equity and a strategic plan to exit the crisis, which it has already begun to implement. Meanwhile, some believe in the company's potential, as evidenced by the 63.16% appreciation of its stock since the beginning of the year.
