Akamai continues restructuring, aims for operating margins in high 20s for 2020

Thursday 8 March 2018 | 14:35 CET | News
After conducting a major company-wide restructuring exercise, Akamai Technologies has announced new value creation initiatives to drive operating improvement and the appointment of independent directors to help with the process, namely Tom Killalea and another director to be named at a later date. Akamai stressed it will continue to focus on growth. 

Akamai is aiming for operating margins for existing operations in the high 20s for 2020, with a real eye on 30 percent. To help with this goal, the company has set up a Financial Operating Committee to identify operating efficiencies and increase margins. 

Akamai has also upped this year’s share buyback programme by about USD 417 million to USD 750 million. Finally, the company said it intends to continue to return to shareholders a substantial percentage of free cash flow in future years. There will be an Investor Summit around mid-year and an update then on the company’s progress with these initiatives.

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