Vianet Group PLC on Monday said it expects to report an increase in first-half earnings, hailing a ‘notable improvement in the group’s performance’.
It did, however, warn of possible short-term challenges amid a ‘slow pace of the 3G network shutdown’.
Vianet shares were 7.9% lower at 112.88 pence each in London on Monday morning.
The provider of data and business insights, which has pub firms and payment providers among its clients, said it expects to report earnings before interest, tax, depreciation and amortisation rose 27% to £1.6 million in the six months to September 30, from £1.2 million a year prior. It is an outcome ‘in line with management’s expectations’, it said.
Adjusted operating profit rose 10% year-on-year to £1.4 million from £1.3 million, it said in a trading update.
Vianet expects to report revenue of £7.7 million in the first half, up 7.0% from £7.2 million a year earlier, with recurring revenue of £6.5 million accounting for 84% of total income.
Stockton-on-Tees, England-based Vianet is a provider retail sales and volume monitoring systems.
Chair & Chief Executive Officer James Dickson said: ‘We are witnessing a notable improvement in the group’s performance, driven by our strategic investments in sales, technology, new market verticals, and expanded product lines. These initiatives, along with our strategic partnerships, have established a strong foundation for growth, unlocking exciting commercial opportunities across all areas of our business.
‘Our collaboration with Suresite, alongside the recent exit of a competitor is creating substantial new opportunities within the unattended retail sector, particularly in expanding our market share and subscription revenues. While the slow pace of the 3G network shutdown presents certain short-term challenges, it has not impeded our ability to build a strong pipeline. We remain optimistic about our capacity to double the size of this business within the next 18-24 months.’
Vianet will release half-year results December 3.
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