DORTMUND (dpa-AFX) - IT services provider Adesso is becoming more cautious for 2023 after a surprisingly sluggish operating performance in the third quarter. Earnings before interest, taxes, depreciation and amortization (Ebitda) are now expected to be in the range of 70 to 90 million euros, the company announced in Dortmund on Thursday when presenting preliminary figures. Previously, management had targeted 100 to 110 million euros. "Despite the positive development in the core IT services business, the third quarter delivered a lower contribution to earnings than originally expected, especially as additional expenses were booked as part of two major fixed-price projects and license revenue fell short of expectations," it said. The stock gave up some of its gains in the afternoon.

In the first nine months, operating profit fell by a quarter to 53 million euros. The company blamed this mainly on growth-related capacity utilization delays in the first half. Sales increased by 28 percent to 833 million euros in the first nine months. For the year as a whole, the company is still aiming for more than one billion euros.

However, order intake remains at record levels and the economic situation is not yet showing any negative effects. Customer demand for digitization services remains high. The Executive Board thus expects strong growth in the double-digit percentage range and a return to the usual Ebitda target margin range also for 2024, Adesso further announced.

Adesso plans to present its third quarter figures on November 14./mne/mis