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Logicom expects stable operating profit despite regional tensions

Cyprus Mail · 2026-07-01

AI SUMMARY

• What happened: Logicom Public Ltd announced a projected slight decrease in turnover for the first half of 2026, primarily due to ongoing military conflicts in the Gulf region. • Why it matters: The geopolitical tensions are impacting the business environment, yet Logicom expects to maintain stable operating profits, reflecting resilience in its core activities. • What to watch next: Stakeholders should monitor updates from Logicom regarding its subsidiary, Demetra Holdings Plc, and any further developments in the Gulf region that may affect the company's financial outlook.

**Logicom Anticipates Stable Operating Profit Amid Regional Tensions**

Logicom Public Ltd, a prominent player in the technology and telecommunications sector, has announced its expectations for the first half of 2026, projecting a slight decrease in turnover compared to the same period in 2025. This forecast comes in light of ongoing military conflicts in the Gulf region, which the company cites as a significant factor influencing its business environment.

In a statement released this week, Logicom indicated that the geopolitical tensions have created challenges that have negatively impacted its operational landscape. Despite the anticipated decline in turnover, the company remains optimistic about its operating profit, expecting it to hold steady at levels comparable to the previous year. This resilience in operating profit is attributed to the stability of its regular and existing business activities.

Logicom also provided insights into its profitability outlook, noting that when excluding the results from its subsidiary, Demetra Holdings Plc, the company anticipates maintaining a stable profit margin. However, Logicom acknowledged the uncertainty surrounding its final net profitability after taxation, primarily due to the current lack of information regarding Demetra Holdings' expected results.

The company emphasized its commitment to transparency, stating that it will issue further announcements as more information becomes available regarding Demetra Holdings. This approach reflects Logicom's focus on providing stakeholders with timely updates, especially in a fluctuating market environment.

As the situation in the Gulf region continues to evolve, Logicom's management will likely keep a close watch on geopolitical developments and their potential impacts on business operations. The company’s ability to navigate these challenges while maintaining profitability will be crucial as it seeks to uphold its market position and deliver value to its shareholders.

In summary, while Logicom anticipates a marginal reduction in turnover for the first half of 2026 due to external geopolitical factors, it expects its operating profit to remain stable. The company is prepared to communicate further details regarding its financial outlook as more information becomes available, particularly concerning its subsidiary operations.

Source: Cyprus Mail
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