Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Given the current challenges, do you anticipate any changes in your guidance or potential economic stimulus from policy changes in Germany? A: We had a slow start to the year, but there is potential for improvement in the second half. The first six months are expected to be weak, but we hope for a positive shift once public sector budgets are adopted. Our guidance remains unchanged, heavily dependent on public sector business and SME investments.
Q: How is the recent change in Microsoft's incentive structure affecting Bechtle, and do you expect other vendors to follow suit? A: The change by Microsoft will have a high single-digit million euro impact this year, with effects lasting three years. We need to transition EA contracts to CSP contracts, requiring investment in cloud platforms and staff training. Other vendors like Cisco are considering similar changes, reinforcing our decision to invest in cloud infrastructure.
Q: Can you provide more details on your reporting structure and the potential for more transparency in hardware and services revenues? A: We are moving towards a regional reporting structure to align with our strategic focus on Europeanization. This change will reflect our market penetration efforts and is a shift from our traditional segment logic.
Q: With flat revenue and EBIT projections, do you plan to cut costs more aggressively? A: We are cautious with payroll costs, using short-time work where necessary. Achieving last year's EBIT would be a success, but with only 1-2% growth, maintaining previous results is challenging. Our focus is on leveraging existing contracts to increase volume.
Q: What is the impact of manufacturer bonuses on your financials, and are there any M&A activities planned? A: Despite not growing, we maintained stable funding from vendors due to our market performance. We expect an M&A transaction in the first half of the year, focusing on system houses in Germany and potential acquisitions in Southern and Eastern Europe.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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