Ascom increased Group profit substantially

March 5, 2024

Ad hoc announcement pursuant to Art. 53 LR
Baar, Switzerland, March 5, 2024

  • Overall successful fiscal year 2023 with profitable growth:
    • Net revenue of CHF 297.3 million (2022: CHF 297.4 million), reflecting an increase of 5.5% at constant currencies and a flat development at actual currencies
    • Improved EBITDA of CHF 30.1 million (2022: CHF 23.9 million) with an EBITDA margin of 10.1% (2022: 8.0%)
    • Strong increase in Group profit to CHF 17.4 million (2022: CHF 11.0 million) with earnings per share of CHF 0.48 (2022: CHF 0.31)
    • Net cash position rose to CHF 24.7 million (2022: CHF 16.6 million) with a solid equity ratio of 39.9% (2022: 36.4%)
  • Dividend proposal
    • CHF 0.30 per share, representing a payout ratio of 62%
  • Guidance for fiscal year 2024
    • Mid-single-digit revenue growth at constant currencies
    • EBITDA margin of around 11%
  • Mid-term Guidance
    • High single-digit revenue growth at constant currencies by 2027
    • Annual improvement of the EBITDA margin of about 100bp per year until 2027

Revenue growth of 5.5% at constant currencies
Ascom generated a net revenue of CHF 297.3 million for fiscal year 2023 (2022: CHF 297.4 million), representing an increase of 5.5% at constant currencies and a flat development at actual currencies. After a strong first half-year of 2023 with revenue growth of 10.3% at constant currencies, the performance of the Company in the second half-year was lower due to a softening macro-economic environment.
The strongest performance was achieved in the regions DACH and UK, with double-digit revenue growth at constant currencies, while the region Rest of World recorded mid-single-digit growth. All other regions showed slight revenue growth at constant currencies.
Revenue split by market segment showed the Healthcare sector accounted for 66% of total revenue in 2023 (2022: 69%), while the Enterprise sector increased to 28% (2022: 24%) due to a strong performance in the DACH region. OEM business accounted for about 6% (2022: 7%). Service business accounted for 35% and was in line with the previous year. Revenue from recurring business was stable with about 25% of total revenue as in the previous year.

Healthy order backlog

In 2023, Ascom generated incoming orders of CHF 318.6 million (2022: CHF 335.7 million), representing a flat development at constant currencies and a decline of 5.1% at actual currencies. The USA & Canada, and the Netherlands achieved a good order intake with growth of over 5% at constant currencies. The order backlog remained at a solid level of CHF 276.4 million as of year-end 2023 (31.12.2022: CHF 276.5 million). Ascom continued to have a positive book-to-bill ratio in 2023.

Double-digit EBITDA margin and strongly improved Group profit
In 2023, gross profit increased to CHF 141.4 million (2022: CHF 136.1 million) with an improved gross margin of 47.6% (2022: 45.8%). The positive development results from lower costs of sales and improvements in product costs.
Based on the improved business model and better cost management, Ascom achieved an EBITDA of CHF 30.1 million (2022: CHF 23.9 million) for fiscal year 2023 leading to an EBITDA margin of 10.1% (2022: 8.0%). Despite the softer economic environment in the second half of the year, Ascom is reporting an EBITDA margin of 12.8% for the second half-year 2023, compared with 7.5% for the first six months. In parallel, Ascom was able to increase the EBIT for fiscal year 2023 by over 44% to CHF 20.2 million (2022: CHF 14.0 million).
Considering a neutral financial result (financial income / financial expenses) and lower taxes in 2023, Group profit for fiscal year 2023 improved significantly to CHF 17.4 million (2022: CHF 11.0 million), and earnings per share increased to CHF 0.48 (2022: CHF 0.31).

Strong balance sheet structure with improved equity ratio
In 2023, Ascom generated positive cash flow from operating activities of CHF 32.5 million (2022: CHF 10.2 million). The difference compared to the previous year resulted mainly from higher Group profit and lower trade receivables.
Cash flow used by investing activities was CHF 16.2 million (2022: CHF 14.0 million) while cash flow from financing activities was at CHF -17.2 million (2022: CHF 2.2 million), which is attributable to the repayment of long-term borrowings of CHF 10.0 million and the dividend payment of CHF 7.2 million in April 2023.
Shareholder’s equity stood at CHF 78.7 million as of year-end (31.12.2022: CHF 73.4 million), which represents a solid equity ratio of 39.9% (31.12.2022: 36.4%).

Dividend proposal
The Board of Directors is proposing an increased dividend of CHF 0.30 per share to the Annual General Meeting 2024 representing a payout ratio of about 62% of the Group profits.

Positive outlook
Ascom is in an attractive market environment, and digitalization in the healthcare industry will continue to progress. Ascom is confident to strengthen its competitiveness, grow the business, and benefit from the significant opportunities ahead.
For the fiscal year 2024, Ascom targets a mid-single-digit revenue growth at constant currencies and aims to achieve an EBITDA margin of around 11%.
Over the coming years, Ascom has the ambition to further accelerate growth and profitability, aiming for high single-digit revenue growth by 2027 and an annual improvement of the EBITDA margin of about 100bp per year until 2027.

Changes in the Board of Directors and Management
Dr Andreas Schönenberger will not stand for re-election as a Board member at the upcoming Annual General Meeting. The Board of Directors thanks him for his valuable contributions over the last four years. The Board of Directors proposes electing Dr Monika Krüsi as a new Board member at the upcoming Annual General Meeting. Monika Krüsi is an experienced Board member with a strong track record in the industry.
As already announced, Dominik Maurer (CFO) has decided to leave the Ascom Group after the Annual Media Conference 2024. His successor will be announced shortly. Dominik Maurer has played an important role in the transformation of Ascom, and the Board of Directors thanks him for this contribution over the past years.


In CHFm Ascom Group
  FY 2023 H2 2023 H1 2023 FY 2022
Incoming orders 318.6 147.1 171.5 335.7
Net revenue 297.3 147.1 150.2 297.4
Gross profit 141.4 70.1 71.3 136.1
EBIT 20.2 14.1 6.1 14.0
EBIT margin in % 6.8% 9.7% 4.1% 4.7%
EBITDA 30.1 18.9 11.2 23.9
EBITDA margin in % 10.1% 12.8% 7.5% 8.0%
Group profit 17.4 12.3 5.1 11.0
Employees (FTE) at 31.12. 1,403 1,403 1,368 1,345

The complete 2023 Annual Report of the Ascom Group and the 2023 Full-Year Results Presentation are available in English and for download at:

2023 Full-Year Results Conference
The 2023 Full-Year Results Conference takes place on

Tuesday, 5 March 2024 at 10.00 a.m. CET.
Restaurant METROPOL, Fraumünsterstrasse 12, 8001 Zurich
Webcast: A live audio webcast with synchronized slides of the conference including Q&A, will be available on Link Webcast.

Daniel Lack
Senior VP Legal & Communications / IR

+41 41 544 78 10


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