OVH Groupe Shares Tumble Following Revised 2024 Financial Forecasts

French cloud services company OVH Groupe sees significant share price drop after lowering its 2024 sales and profit targets due to weak demand in Europe.

• OVH Groupe's shares fell sharply, experiencing their largest daily drop after the company reduced its 2024 sales and profit forecasts.
• The revised forecasts reflect a challenging economic environment, particularly in France and Germany, impacting customer demand.
• Despite the downward revision in sales and profit forecasts, OVH reported a higher-than-expected core profit for the first half of the year, with a 18.3% increase in EBITDA.
• The company's overall strategy includes cost-cutting measures and price increases to boost profitability amidst the economic downturn.
• OVH remains committed to its medium-term targets, maintaining a core profit margin forecast of over 37% for 2024.

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