OVH Groupe's H1 core profit beats forecasts

(Reuters) -French cloud services provider OVH reported a half-year adjusted core profit on Tuesday that beat market expectations, helped by margin expansion, though it cut its full-year forecast citing a challenging macroeconomic environment.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) grew 18.3% to 184 million euros ($196.00 million), beating a company-compiled consensus that expected 180.3 million, or a growth of 15.8%.

"In line with our strategic plan, we are publishing a sharp increase in profitability and the generation of positive unlevered free cash flow for the second consecutive half-year, six months ahead of schedule," said CEO Michel Paulin in a press release.

The company, however, trimmed its full-year core profit target, citing reduced macroeconomic visibility.

OVH Groupe now expects organic revenue growth of between 9% and 10%, against a previous forecast for growth of 11%-13%.

CEO Paulin referenced a "challenging economic environment, particularly in Europe."

"This reduced economic visibility in 2024 has led us to review our revenue targets," he added.

The company confirmed its medium-term targets.

(Reporting by Olivier Sorgho and Alban Kacher; Editing by Sonali Paul and Janane Venkatraman)

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