Akamai Q4 revenues up 8%, profit falls on restructuring charges

Wednesday 7 February 2018 | 09:07 CET | News

Akamai Technologies announced fourth-quarter revenues up 8 percent year-on-year to USD 663 million. The company said Web Division customer revenue grew 17 percent, security product revenue grew 32 percent and media traffic on Akamai's platform grew faster than published growth rates for internet traffic as a whole. Akamai expects further sales growth and margin improvement in 2018. 

Operating profit totaled USD 28 million in Q4, down 77 percent from a year earlier due to a USD 52 million restructuring charge and a USD 16 million charge for the release of an indemnification asset related to a 2012 acquisition. Adjusted operating profit fell 11 percent to USD 155 million.

The restructuring charge covers workforce reductions, facility closures and capitalized software impairments from decisions to deprioritize certain investment areas that have not achieved commercial success and returns on investments initially expected, most notably in the Media Division, Akamai said. The company added that the improvement in Media traffic seen in Q3 continued in Q4 and it aims to grow revenue from the business in 2018, after a 1 percent fall at constant currency rates in 2017.

Akamai's net profit reached USD 19 million in Q4, down 79 percent due to the charges above and a USD 26 million provision associated with the US tax reform. Adjusted EPS fell 4 percent to USD 0.69.

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