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ER - KERLINK : Revenue down 6% in a wait-and-see market. Improved cash flow: €5.3m at end-June (+€1.3m).

Company: Kerlink Date: 2024-07-11 Language: English Register to download
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# **Revenue down 6% in a wait-and-see market**

Improved cash flow: €5.3m at end-June (+€1.3m)

#### **PRESS RELEASE**

**Thorigné-Fouillard, France** – 11 July 2024, 6.00 p.m.

**[Ke](https://www.kerlink.fr/)rlink** (AKLK FR0013156007), a French network and IoT solutions provider, published its H1 2024 revenue today.

**H1 2024 sales were down 6% to €6.2m compared with €6.6m in H1 2023.** This trend in revenue resulted primarily from a decline in services sales, the Group having terminated two Network as a Service (NaaS) contracts signed with players in economic difficulties.

Second-quarter business in the EMEA region was adversely affected by delays in infrastructure orders and by postponed decisions on calls for tenders, impacting the Smart City segment.

| Revenue<br>by type of sale<br>In thousands of euros | H1 2024 | Q2 2024 | Q1 2024 | H1 2023 | Q2 2023 | Q1 2023 | Chg.<br>H1 24<br>vs.<br>H1 23 |
|-----------------------------------------------------|---------|---------|---------|---------|---------|---------|-------------------------------|
| Equipment                                           | 4,779   | 2,238   | 2,541   | 4,567   | 2,371   | 2,196   | +5%                           |
| Services                                            | 1,463   | 747     | 716     | 2,056   | 885     | 1,171   | -29%                          |
| Total                                               | 6,242   | 2,985   | 3,257   | 6,623   | 3,256   | 3,367   | -6%                           |

 *IFRS – Unaudited figures*

## **Gross margin remains satisfactory**

**Sales of network infrastructure equipment accounted for 77% of IoT solution sales in H1 2024, compared with 69% in H1 2023, up 5% from that period to €4.8m.** The Group stresses that integrating value-added solutions directly into infrastructure products to make them fully plug & play favours the sale of equipment to the detriment of services, sales of the latter having dipped 29% to €1.5m.

Despite the decrease in services sales, the Group succeeded in maintaining a well-controlled gross margin in first-half 2024.

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## **Cash flow improves on measures implemented in 2023**

The measures implemented by the Group in Full Year 2023 have served to improve its cash position, which stood at €5.3m at end-June 2024 compared with €4m at end-December 2023.

#### **The Group pursues its strategy on winning new customers and adjusts its guidance**

Kerlink is positioned for numerous commercial consultations, which could be converted in the second half of the year. It remains focused on implementing its strategy to win new customers by harnessing its many strengths, namely an extensive product catalogue with differentiating, high-performance and secure solutions offering the best quality/safety/price ratio on the market.

By more closely involving its partners, which rank as key players in the IoT ecosystem, the Group is confirming that it is now positioned on new projects that should ultimately enable it to reach a new stage in its development.

Through its positioning at the heart of the IoT value chain, Kerlink is able to bring its customers optimal solutions combining intelligence, efficiency, a considerable reduction in GreenHouse Gases (GHG), and a swift return on investment. In a fast-growing LoRa® market, expected to grow from USD 5.6bn in 2023 to over USD 25bn in 202[8](#page-1-0)1, these key strengths will drive the Group's development in the coming months and years.

In the light of these factors, Kerlink is reaffirming its confidence in its future prospects. But in the short term, given the wait-and-see attitude of the market and reduced visibility on how it will trend in the future, the Group is not able to confirm the financial objectives envisaged last March. At that time, the Group was targeting revenue growth of 20% and positive EBITDA. To date, the sub-double-digit growth now forecast for 2024 is not expected to allow Kerlink to achieve its EBITDA target. However, the business opportunities expected to materialise in the coming months along with the benefits of cost control measures should nevertheless enable the Group to come close to that target.

| Revenue by activity<br>In thousands of euros | H1 2024 | H1 2023 |  |
|----------------------------------------------|---------|---------|--|
| Historical and alternative telecom carriers  | 458     | 612     |  |
| Private carriers                             | 5,784   | 6,011   |  |
| Smart City & Quality of Life                 | 1,876   | 2,722   |  |
| Smart Building & Industry                    | 3,061   | 2,399   |  |
| Smart Agriculture & Environment              | 846     | 883     |  |
| Total                                        | 6,242   | 6,623   |  |

## **Appendices**

 *IFRS – Unaudited figures*

<span id="page-1-0"></span><sup>1</sup> Research & Market Institute "[LoRa and LoRaWAN IoT Markets -](https://www.globenewswire.com/en/news-release/2023/07/11/2702335/28124/en/LoRa-and-LoRaWAN-IoT-Markets-Global-Forecast-to-2028-Increasing-Smart-City-Initiatives-Rising-Adoption-of-Intelligent-Devices-Bolsters-Growth.html) Global Forecast to 2028 - (globenewswire.com)"

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| Revenue by geographical area<br>In thousands of euros | H1 2024 | H1 2023 |
|-------------------------------------------------------|---------|---------|
| NCSA (Americas)                                       | 356     | 387     |
| APAC (Asia-Pacific)                                   | 412     | 251     |
| EMEA                                                  | 5,474   | 5,985   |
| Total                                                 | 6,242   | 6,623   |

 *IFRS – Unaudited figures*

## **About Kerlink**

Kerlink is a global provider of connectivity solutions for the design, deployment and operation of public and private Internet of Things (IoT) networks. Its broad portfolio of solutions is based on industrial-grade network equipment and management software, all supported by value-added services and backed by strong R&D capabilities. The Group's commitment to customer success includes a Plug and Play solution that guarantees the association of gateways with third-party LoRa Network Servers (LNS). Kerlink specialises in the deployment of scalable IoT connectivity in three major areas: Smart City & Quality of Life, Smart Building & Industry and Smart Agriculture & Environment.

Over 250,000 installations have been deployed at more than 550 customers in 75 countries. Headquartered in France, with subsidiaries in the United States, Singapore, India and Japan, Kerlink Group is a co-founder and board member of the LoRa Alliance® and the uCIFI Alliance™.

#### <https://www.kerlink.fr/>

Kerlink®, Wirnet® and Wanesy® are registered trademarks of Kerlink SA and its subsidiaries around the world and must not be used without authorisation. All rights reserved.

**Kerlink Contact** 

**Presse Financière :**

Isabelle Dray

+33 (0) 1 56 88 11 29

[isabelle.dray@seitosei-actifin.com](mailto:isabelle.dray@seitosei-actifin.com)

**Kerlink Contact Investisseurs :**

Benjamin Lehari

+33 (0)1 56 88 11 25

[benjamin.lehari@seitosei-actifin.com](mailto:benjamin.lehari@seitosei-actifin.com)

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**Kerlink Contact Presse et Analystes Marchés :** Sarah-Lyle Dampoux +33 (0) 6 74 93 23 47

[sldampoux@mahoneylyle.com](mailto:sldampoux@mahoneylyle.com)

**Next publication** 2024 Half-year Results and 2024 Q3 Revenue 10 October 2024, after the market closes

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