Sinch tumbles on Q4 miss, bleak near-term outlook
16/02/2023 08:11
** Shares in Sinch SINCH.ST drop 13% after the Swedish
cloud computing services provider posted weaker-than-expected Q4
results and said near-term recovery seems unlikely
** "The seasonal increase in messaging volumes in the fourth
quarter was not as definitive as we have seen in previous
years", the company says
** It adds some customers prefer profitability over growth
now, leading to a decline in overall transaction volumes in the
messaging unit
** Sinch says it does not expect any immediate improvement
in the growth rate, as the macroeconomic outlook remains
uncertain
** J.P.Morgan says results and general outlook commentary is
much weaker than consensus would have expected
** The broker expects downgrades to 2023 consensus numbers,
saying the current estimates look "fairly optimistic"
** The stock hits the bottom of the Stockholm blue-chip
index .OMXS30
(Reporting by Boleslaw Lasocki)
((boleslaw.lasocki@tr.com))