Avemio AG's Digital Transformation Drives Earnings Improvement Amid Industry Shift

Avemio AG achieved important progress in its strategic realignment during the first half of 2025, with the high-margin digital business making a decisive contribution to earnings improvement while the trading business continued to be impacted by weak customer investment activity. Revenue in the digital business rose to EUR 8.5 million in the first half of 2025, approximately double the prior-year period, driven by two proprietary developments nearing breakthrough status: the cloud solution helmut.cloud and the AI platform CaraOne.

The CaraOne platform received significant industry recognition when it was named Product of the Year at NAB Show in Las Vegas in April 2025, the world's largest industry trade fair, and has already secured initial orders from U.S. media companies. Demand for cloud and AI solutions continues to grow, particularly in the U.S. market where the order pipeline for CaraOne has reached more than USD 5 million. This international acceptance signals the global relevance of Avemio's digital offerings and their potential to drive future growth beyond traditional European markets.

Concurrently, the company's efficiency program in the trading segment is delivering tangible results, with fixed costs set to be reduced by approximately EUR 1.5 million annually starting in 2026. The full integration of all trading brands under the umbrella brand Teltec was successfully completed, addressing structural industry changes including declining demand for high-priced capital goods and the shift toward flexible, usage-based purchasing models. These strategic moves demonstrate the company's proactive approach to navigating evolving market dynamics while maintaining operational efficiency.

Financial results reflect the challenging environment in traditional trading alongside digital growth momentum. Avemio Group generated consolidated revenues of EUR 41.9 million in the first half of 2025, compared to EUR 44.7 million in the prior-year period. However, driven by strong digital segment performance, the Group's gross profit margin improved significantly to 23.9% with gross profit of EUR 10.0 million, up from 21.7% and EUR 9.7 million in H1 2024. Consolidated operating earnings showed marked improvement at EUR -0.9 million compared to EUR -2.1 million in the previous year, primarily due to trading business cost reductions.

The company's financial stability is further evidenced by an increased equity ratio of 46% as of June 30, 2025, up from 44% at year-end 2024, underscoring Avemio Group's solid financing base during this transitional period. Ralf P. Pfeffer, Chief Executive Officer of Avemio AG, emphasized that the trading business reorganization is already showing results and provides the foundation to consistently invest in future technologies. The company's cloud and AI solutions position it to benefit from the media industry's digital transformation and evolve from a German trading company into an internationally active media technology group.

For the second half of 2025, Avemio AG anticipates moderate revival in the trading business alongside the first significant revenue contributions from new digital products. The company's 2025 Half-Year Report is available on the company's website at https://avemio.com/news/#finanzberichte, providing detailed financial information and strategic updates. This balanced approach of maintaining traditional business while accelerating digital innovation represents a comprehensive response to industry-wide shifts toward technology-driven solutions and flexible business models.