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The board of the Jena-based software provider Intershop is today drawing a line under the 2023 financial year. © Bodo Schackow/dpa/archive image
The business of Jenaer Intershop AG fluctuates greatly.
2023 was not a good year for the software provider.
Things should get better in 2024, says the board.
Jena - The Jena-based software provider Intershop ended the 2023 financial year in the red.
The bottom line is that the balance sheet presented by the board on Wednesday shows a loss of 3.1 million euros.
This means that the specialist for programs for online trading has made a loss for the second year in a row.
The board cited the reluctance of many customers to invest as the main reason.
Costs should come down
"We are not satisfied.
“It can’t go on like this for a third year,” said CEO Markus Klahn in Jena.
“We have to reduce costs.” Despite two difficult years, Intershop is financially healthy.
Last year the operating result was minus 2.5 million euros.
For the current financial year, the Management Board expects moderate sales growth with a balanced operating result.
The company should be returned to profitability.
Overall, the economic environment is challenging due to high interest rates and costs and general uncertainty caused by political decisions.
“Last year, a number of expected investment decisions from our customers did not come or were postponed.” This resulted in Intershop sales only increasing by three percent to 38.0 million euros.
Plus with rental software
Actually, now is the time for countercyclical investments in the further digitalization of business processes.
However, many companies are currently concerned with other issues such as energy conversion or more sustainability, said the Intershop boss.
After its founding, the Jena-based company was one of the Internet pioneers in Germany.
The business model was changed some time ago.
The listed company is now selling fewer software licenses and is primarily relying on rental software for companies' Internet portals - so-called cloud solutions.
There was sales growth of 14 percent in this area last year.
The trading platforms that Intershop builds for customers now also include artificial intelligence that reacts to language and can be used to quickly change sales offers, for example, said Klahn.
According to Intershop, it currently employs around 300 people.
Despite necessary cost savings, there should be no layoffs.
However, in the event of fluctuation, consideration will be given to whether a position necessarily needs to be filled again.
This also applies to working with freelancers.
Klahn: “We want to sell more with the same staff.” dpa