Challenging quarter for Ceva
Ceva has announced its Q1/2019 results. The service provider increased its revenue by 1.1% in constant currencies to USD 1.698 billion in the period under review. On a reported basis, the Q1 revenue declined by 5.2% year-on-year due to the negative conversion of foreign currencies such as the BRL, the TRY, the EUR and the AUD into USD.
In Ceva’s freight management division revenue dropped by 0.7% to USD 797 million, and the contract logistics revenue decreased by 8.7% to USD 901 million in Q1/2019. The group’s Q1/2019 ebitda was USD 134 million. On a pre-IFRS 16 basis, ebitda represented USD 36 million resulting in an ebitda margin of 2.1%.
Despite a challenging global environment at the beginning of the year, Ceva has performed in line with its roadmap and targets and achieved a number of productivity improvements. Management still expects that 2019 will see progress in line with the 2021 objectives, including improvement in ebitda margin and in free cash flow. (mw)