Europe Movers: Freenet, Netcompany, Rentokil, SAP, Sartorius, Siemens Energy, SThree

Inga Muller
28 Jan, 2025
Frankfurt

European markets struggled to stay above the flatline, and investors awaited rate decisions from major central banks. SAP revised higher its operating earnings outlook. 

Siemens Energy reported better-than-expected preliminary fiscal first quarter revenue.

The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75. 

The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.

SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.

Revenue increased 11% to €9.38 billion from €8.47 billion; operating profit rose 6% to €2.02 billion from €1.9 billion, and earnings per diluted share jumped to €1.37 from €1.05 a year ago.

Net cash flows swung to negative €551 million from €1.93 billion a year earlier as software licenses revenue decreased by 18%.

The proportion of women in executive roles increased 0.3 percentage points to 22.5%, in line with the outlook.

As part of the company’s €5 billion stock repurchase program, SAP repurchased 18.43 million shares at an average price per share of €162.46 as of December 31, totaling €3 billion.

Looking ahead to 2025, SAP expects growth in cloud and software revenue up 11% to 13% at constant currencies.

SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November. 

Revenue declined 10% to £1.49 billion from £1.66 billion; operating profit was down 12% to £369.1 million from £418.8 million, and earnings per diluted share fell to £37.4 from £42.4 a year ago.

Group net fees were down 9%, driven by declines in the Netherlands, Germany, and the U.S.

The UK-based staffing company cancelled its repurchase of 67,389 shares at 279.5 to 289 pence.

The Board has proposed to pay a final dividend of 9.2 pence per share, and with an interim dividend of 5.1 pence, will add to a total cash dividend of 14.3 pence in financial year 2024. 

The final dividend was lower than 11.6 pence in the previous year, but the interim dividend was higher than 5.0 pence, totaling 16.6 pence in the financial year 2023. 

The final dividend, which amounts to approximately £12.2 million, will be subject to shareholder approval and will be paid on June 6 to shareholders on record as of May 9.

In addition, the company’s non-executive director, Denise Collis, confirmed plans to retire from the board effective June 30.

Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.

Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.

The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.

Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.

Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter. 

Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue. 

The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.

Rentokil Initial Plc gained 2% to 394.40 pence after the pest control services company posted strong results for its fourth quarter ending in December.

North America organic revenue grew 2.3%, driven by pest control services increase of 1.5%.

Group organic revenue growth in the quarter was 3.0%, driven by new satellite branches, new technician and sales pay plans, and first re-routing and re-branding activities.

The company will post preliminary results and outlook on March 6.

Siemens Energy AG surged 4.7% to €50.58 after the energy company started fiscal year 2025 with higher-than-expected free cash flow before taxes.

The company estimated to surpass the current cash flow annual estimates of up to €1 billion, and plans to update its half-year guidance.

Siemens Energy will publish earnings results for the first quarter of fiscal year 2025 on February 12.