Temenos unveils new strategic plan and 2028 targets (updated)
12/11/2024 08:22
(Updates with share price reaction, paragraph 4)
ZURICH, Nov 12 (Reuters) - Temenos TEMN.S on Tuesday
presented a new plan to drive organic growth over the next four
years just a few weeks after the Swiss banking software firm cut
its outlook for 2024 for the second quarter in succession.
Temenos said that on a timeline for 2028 it was targeting
annual recurring revenue (ARR) of more than $1.3 billion,
non-IFRS EBIT (earnings before interest and taxes) of about $500
million, and free cash flow of around $420 million.
"Today marks the beginning of a new chapter at Temenos,"
Temenos CEO Jean-Pierre Brulard said in a statement. "We expect
to deliver strong growth in ARR, margin expansion and
sustainable free cash flow growth."
Temenos shares slipped after the market opening, falling by
as much as 2.7% before trimming losses.
Last month the company lowered its full-year outlook for the
second straight quarter and launched an "efficiency program"
that includes reorganizations at management level.
Geneva-based Temenos is due to discuss in detail its plan
and targets at its Capital Markets Day later on Tuesday.
(Writing by Dave Graham, Editing by Friederike Heine)
((dave.graham@thomsonreuters.com; Reuters Messaging:
dave.graham.thomsonreuters.com@reuters.net))