Preliminary Q2 2024 Sopra Steria Group SA Earnings Call Transcript
Key Points
- Sopra Steria Group SA (SPSAF) reported an estimated operating margin of 9.7% for the first half of 2024, an increase from the previous year.
- The company is confident in achieving its full-year operating margin target of at least 9.7%, with a goal close to 10%.
- Growth in other European countries, particularly Scandinavia, Spain, and Italy, remains positive.
- The integration of acquired companies is progressing well, contributing positively to margins.
- The sale of Sopra Banking Software is expected to be finalized before September 2024, which is anticipated to positively impact the company's financials.
- The economic environment in France is increasingly uncertain, leading to a slowdown in customer decision-making and impacting revenue growth.
- There is a temporary delay in the ramp-up of a significant contract in the UK, which is now expected to contribute to growth in 2025.
- The aerospace sector is facing difficulties in ramping up production, negatively impacting the order book for 2024.
- Organic growth target for 2024 has been adjusted to a stable level, down from the previous target of 2% to 4%.
- The French market is experiencing slight negative growth, with specific challenges in sectors like aerospace, energy, and telecommunications.
Good evening, ladies and gentlemen, and welcome to the Sopra Steria conference call. This conference call is recorded. (Operator instructions)
I will now hand the floor to Cyril Malarge, Chief Executive Officer, over to you.
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Good evening. Good evening, ladies and gentlemen. We're organizing this conference call this evening to share with you some information, which has recently emerged and which will have an impact on our 2024 sales. Several external conjunctural events, which emerged in the month of June, need to be taken into account in our revenue growth outlook for H2.
Firstly, as you've probably all seen, the environment is increasingly uncertain in France, resulting in a significant slowdown in our customers' decisions. There's a good pipeline, but decisions are being pushed back.
This phenomenon is impacting most business sectors with the exception of defense, security and transport who have got clearly positive trends. With regards to the
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