Temenos cuts 2028 targets to reflect Multifonds sale (updated)
18/02/2025 17:44
(Adds 2028 outlook, details and CFO quote in paragraphs 1-5,
7-10)
Feb 18 (Reuters) - Banking software company Temenos
TEMN.S on Tuesday lowered its full year 2028 targets to
reflect the $400 million sale of its fund administration
software business Multifonds, announced earlier in February.
The Swiss-based company now expects annual recurring
revenue (ARR) to reach at least $1.2 billion in its 2028
financial year.
Previously in November it had said it was targeting ARR of
more than $1.3 billion for 2028, already postponed from a 2027
target.
Temenos also lowered its 2028 earnings before interest and
taxes (EBIT) target to about $450 million, from $500 million
previously, and lowered its free cash flow outlook to around
$400 million from around $420 million.
On Tuesday the banking software firm also provided an
outlook for its 2025 financial year.
Temenos said a closely watched measure of revenue would grow
at least 12% in 2025, as it reported 2024 full-year and fourth
quarter earnings that were in line with preliminary results.
The Swiss-based company sees non-IFRS, constant currency ARR
growth of at least 12% in 2025 alongside subscription and SaaS
(software as a service) growth of 5-7%.
"Looking at our cost base, we benefited from the efficiency
program launched in H2-24 and did not see a significant impact
yet from the investments we made, in particular in Sales and
Marketing and R&D," Temenos CFO Takis Spiliopoulos said in a
statement.
Temenos had launched an "efficiency program" last year
including reorganizations at management level after it had cut
its outlook two quarters in a row.
The Geneva-based company had in January reported preliminary
fourth quarter results and on Tuesday detailed that Cloud ARR
made up 43% of the quarter's total ARR.
(Reporting by Marleen Kaesebier in Gdansk; editing by Tom Sims,
Alexandra Hudson)
((marleen.kaesebier@thomsonreuters.com;))