(Reuters) -Banking software company Temenos on Tuesday lowered its full year 2028 targets to reflect the $400 million sale of its fund administration software business Multifonds, announced earlier in February.

The Swiss-based company now expects annual recurring revenue (ARR) to reach at least $1.2 billion in its 2028 financial year.

Previously in November it had said it was targeting ARR of more than $1.3 billion for 2028, already postponed from a 2027 target.

Temenos also lowered its 2028 earnings before interest and taxes (EBIT) target to about $450 million, from $500 million previously, and lowered its free cash flow outlook to around $400 million from around $420 million.

On Tuesday the banking software firm also provided an outlook for its 2025 financial year.

Temenos said a closely watched measure of revenue would grow at least 12% in 2025, as it reported 2024 full-year and fourth quarter earnings that were in line with preliminary results.

The Swiss-based company sees non-IFRS, constant currency ARR growth of at least 12% in 2025 alongside subscription and SaaS (software as a service) growth of 5-7%.

"Looking at our cost base, we benefited from the efficiency program launched in H2-24 and did not see a significant impact yet from the investments we made, in particular in Sales and Marketing and R&D," Temenos CFO Takis Spiliopoulos said in a statement.

Temenos had launched an "efficiency program" last year including reorganizations at management level after it had cut its outlook two quarters in a row.

The Geneva-based company had in January reported preliminary fourth quarter results and on Tuesday detailed that Cloud ARR made up 43% of the quarter's total ARR.

(Reporting by Marleen Kaesebier in Gdansk; editing by Tom Sims, Alexandra Hudson)