Sinch drops to bottom of STOXX after CEO change, Q2 results
21/07/2022 08:54
** Shares in Sinch SINCH.ST fall 15% after the Swedish
cloud communication services provider's CEO stepped down and the
group announced Q2 results and a new cost-savings programme
urn:newsml:reuters.com:*:nASM000K58
** On Wednesday after market closed, Sinch said its CEO
Oscar Werner would step down with immediate effect urn:newsml:reuters.com:*:nFWN2Z15WQ
** On Thursday it added this was because the company is
entering a "new phase" and needs to sharpen its focus on
profitability and cash flow amid weakening macro environment
** ABG Sundal Collier analyst Daniel Thorsson says there
should be no reason to let the CEO go if current consensus
estimates reflecting recovery in H2 and 2023 and integration on
track were still accurate
** He also notes the company had not blamed weaker macro
before
** "We think this raises risk for estimate cuts
meaningfully," says Thorsson, who had anticipated the negative
share reaction
** The company will start a cost reduction programme
targeting annual gross savings of about SEK 300 million
** Sinch's net loss was SEK 40 million ($3.9 million) in Q2,
compared with profit of SEK 47 million a year earlier
** Sinch is the worst performer on the pan-European STOXX
600 index .STOXX
($1 = 10.2126 Swedish crowns)
(Reporting by Marie Mannes)
((Marie.mannes@thomsonreuters.com))