Cloud services firm OVH sees flat 2023 profit margins as energy costs bite

Oct 26 (Reuters) – French cloud services company OVHcloud (OVH.PA) forecast on Wednesday flat profit margins in its full-year to end-August 2023 even as revenue is expected to grow, as price hikes only partially offset rising energy costs

OVH said it expects adjusted EBITDA margin growth to be inline with 2022 levels and organic revenue would grow 14-16%, although it said it has not seen any change in its customer behavior following its price increases.

It cautioned though of rising costs, forecasting electricity costs in 2023 will account for around a mid- to high-single digit percentage of its revenue, up from mid-single digit in 2022.

The company posted revenues of 788 million euros ($784 million) in the full year to end-August, up 18.8% year-on-year, and higher than the 781 million average forecast from a company provided consensus.

($1 = 1.0050 euros)

Reporting by Olivier Sorgho; Editing by Jacqueline Wong and Josephine Mason

Our Standards: The Thomson Reuters Trust Principles.

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