MUNICH (dpa-AFX) - The IT service provider Nagarro earned significantly less in the third quarter due to weak capacity utilization. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization (EBITDA) slumped by around a third to 32 million euros, as the SDax-listed company announced in Munich on Tuesday. The management justified this with "considerable excess capacity in software development". In response, the company has adjusted the number of employees. Below the line, profits halved to 12.6 million euros.

In contrast, quarterly turnover rose by 1.9 percent to 234.3 million euros in the third quarter. Adjusted for currency effects, earnings increased by 6.6 percent.

The management had already lowered its targets for 2023 again in the summer due to unfavorable currency developments and restraint in some projects. The Management Board currently expects earnings of around EUR 915 million (previous year: EUR 856 million). The company is aiming for a gross margin of 26% (previous year: 29%). The EBITDA margin (earnings before interest, taxes, depreciation and amortization) is expected to be 13% (previous year 17.3%). All forecasts are based on current exchange rates and do not take into account any future acquisitions./mne/stk