Tecnotree, a global provider of digital platforms for AI, 5G, and cloud-native telecom solutions, has reported a robust performance for the first half of 2025. Despite facing foreign exchange headwinds, the company delivered improved profitability, operational discipline, and significant market expansion, particularly across Europe and South Africa.
According to the company’s financial disclosure for January to June 2025, Tecnotree generated net sales of €34.2 million, a slight year-on-year decline of 2.1%. However, when adjusted for currency fluctuations, constant currency sales increased by 2.7% to €35.9 million.
Operating profit rose to €9.6 million, marking a 20.6% increase from €8 million in the same period last year. The operating margin improved sharply to 28%, up from 22.8%—a gain of 520 basis points. The company credited disciplined cost control and efficient execution of transformation projects for the rise.
While the net result dipped by 30% to €2.6 million—largely due to a €4 million foreign exchange loss—cash flow from operations improved to €10.5 million. Free cash flow turned positive at €2.1 million, a reversal from negative €3.9 million in H1 2024.
Record Order Book and Global Expansion
Tecnotree’s order book reached a record €105.7 million at the end of June, reflecting a 45.5% increase from the previous year. The company attributed this to new large-scale digital transformation deals across the UK, Europe, and South Africa.
The firm also completed ten major digital deliveries for telecom clients, including 695 new feature deployments across its cloud-native Business Support Systems (BSS) platforms. Tecnotree’s Moments and Sensa platforms saw the addition of advanced AI/ML capabilities, campaign-as-a-service modules, and enhanced multi-cloud features.
Strategic Growth and Industry Recognition
Tecnotree bolstered its ecosystem through partnerships with major players like HCL Tech, Accenture, and Microsoft Azure. These collaborations are aimed at accelerating deployment in mature telecom markets and enhancing readiness for cloud-native operations.
The company’s innovation was further recognised by its presence in six 2025 Gartner strategic reports and a major win at the Asian Telecom Awards, where Tecnotree was named Telecom Vendor of the Year for its GenAI-powered marketing solutions. It is also a finalist in five categories at the TM Forum Excellence Awards.
Outlook for H2 2025
With most delivery milestones weighted towards the second half of the year, Tecnotree expects to sustain momentum through ongoing transformation projects, strong cash generation, and continued penetration into new markets.
“The first half of 2025 reflects our focus on disciplined growth and platform innovation,” said a company spokesperson. “Despite global macroeconomic challenges, we’ve delivered tangible results and remain confident in our strategic direction for the rest of the year.”
