Germany's Syzygy nine-month sales fall, driven by decline in German market

Overview

• Germany digital marketing firm's nine-month sales fell 14% yr/yr to EUR 37.8 mln

• Company reported nine-month EBIT of EUR 0.9 mln, up from break-even last year

• Company confirmed full-year sales and EBIT margin guidance

Outlook

• Syzygy confirms 2026 sales forecast of around EUR 50 mln and EBIT margin of 3-4%

• Company says focus remains on profitable new business and scaling AI-enabled services

• Company notes market environment remains subdued

Result Drivers

• SALES DECLINE - In the core German market, sales for the first nine months amounted to EUR 29.1 million, down 18%, followed by Poland

• EFFICIENCY MEASURES - Cost base adjustments and improved operating efficiency contributed to higher EBIT and margins

• SEGMENT CONTRIBUTIONS - All segments delivered positive EBIT despite subdued market conditions

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for Syzygy AG is €2.98, about 254.2% above its October 28 closing price of €0.84

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 14 three months ago

Reuters Recommended Reads

• Oct 26 - MotorK nine-month revenue falls 13% on non-core exit; withdraws FY26 CARR guidance

• Oct 26 - Germany's EDAG Engineering prelim 9M revenue falls on automotive customer restructuring, cuts FY26 outlook

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)