Temenos launches external investigation into Hindenburg allegations
Published: Monday, Feb 19th 2024, 19:01
العودة إلى البث المباشر
Temenos intends to launch an investigation into the serious allegations made by Hindenburg Research. Once again, the Geneva-based manufacturer of banking software vehemently rejects the accusations and intends to provide investors with initial answers on Monday and Tuesday.
As Chairman of the Board of Directors and former Chairman of the Audit Committee, he assured that Temenos ran a solid business with good financial control, Thibault de Tersant was quoted as saying in a press release on Monday.
The investigative investment research company Hindenburg Research made serious allegations against the banking software manufacturer last week. The New York firm accused Temenos of "serious irregularities" in its accounting. Among other things, there was talk of signs of manipulated profits.
The Temenos Board of Directors will now "thoroughly examine" the allegations made. Independent third parties will be consulted in the process. An initial response will be given later at a conference call for analysts on the occasion of the annual results and at the Capital Markets Day on Tuesday (tomorrow). There will also be a "substantiated" response as soon as the results of the audit are available.
Desired CEO canceled at short notice
The Temenos Board of Directors had already sharply rejected the accusations last week. In the multi-page report, Hindenburg Research also pointed out that it was "short" in Temenos shares, i.e. betting on falling prices.
The activist shareholder Petrus Advisers, which is invested in Temenos with less than 3 percent, joined Hindenburg's demands on Friday to dismiss the current interim CEO Andreas Andreades with immediate effect.
Meanwhile, a new CEO has not yet been found. The Board of Directors was close to being able to appoint a new CEO in the second half of 2023, it was reported on Monday. Unfortunately, the appointment did not materialize in the end. However, good progress is being made in recruiting an alternative person.
Former Chairman of the Board of Directors Andreades took over the CEO role on an interim basis in January 2023 following the abrupt departure of then CEO Max Chuard.
More profit and more dividends
Recent events overshadow the annual results of the banking software manufacturer. The company increased its profit in the fourth quarter and thus also in 2023 as a whole, following a slump in earnings in the previous year.
In the final quarter of 2023, adjusted earnings rose by 4% to USD 1.03 per share, Temenos reported. For the year as a whole, earnings amounted to USD 3.19 per share (+13%). Shareholders can now look forward to a higher dividend of CHF 1.20 per share, compared to CHF 1.10 in the previous year.
Temenos had already announced its turnover and operating profit a month ago: In the final quarter, sales reached 298.0 million dollars (+7%). Adjusted operating profit EBIT rose to 101.3 million (+8%). The corresponding margin rose slightly to 34.0% from 33.8% in the previous year.
CEO Andreades was "very satisfied" with the performance in the 2023 financial year, saying that Temenos had achieved growth despite macroeconomic uncertainties. The sales environment remained stable in the fourth quarter and the pipeline developed positively. This also gives visibility for sales in 2024, it said.
For example, license income for software is expected to increase by 7 to 10% in 2024. EBIT is forecast to increase by between 7 and 9 percent and earnings per share by between 6 and 8 percent. Free cash flow is expected to increase by at least 16 percent, according to the report.
Temenos confirmed its medium-term targets. EBIT should reach over 570 million dollars and free cash flow more than 700 million.
©كيستون/إسدا
Arabic 
English 
German 
French 
Spanish