CANCOM SE
CANCOM: Strong profitability improvement raises EBITDA margin (adjusted) to record level of 9.1 percent in third quarter
DGAP-News: CANCOM SE
/ Key word(s): 9 Month figures/Quarterly / Interim Statement
CANCOM: Strong profitability improvement raises EBITDA margin (adjusted) to record level of 9.1 percent in third quarter – In the third quarter of 2019, Group revenue rose to EUR 383.7 million and EBITDA (adjusted) to EUR 34.8 million. – In the nine-month period, CANCOM thus achieved growth rates of 22.0 percent in revenues and 19.9 percent in EBITDA (adjusted). – Annual Recurring Revenue continues growth trend and reaches EUR 156.6 million. Munich, Germany, 14 November 2019 – The CANCOM Group today published its results for the first nine months of fiscal 2019 and the third quarter. The results show a continuation of the very good development of the company in the first half of the year. For the nine-month period 2019, CANCOM reported revenue growth of 22.0 percent year-on-year to EUR 1,175.6 million (prior year: EUR 963.7 million). The organic growth included in this figure amounts to 16.3 percent. The third quarter contributed the following figures to this high growth momentum: CANCOM Group revenues rose by 8.0 percent year-on-year to EUR 383.7 million (prior year: EUR 355.2 million) and EBITDA (adjusted)* improved by 18.0 percent to EUR 34.8 million (prior year: EUR 29.5 million). The EBITDA margin (adjusted) in the third quarter was thus at the new record level of 9.1 percent for CANCOM. “After very strong volume growth in the first half of the year, the third quarter also brought a corresponding increase in profitability. This is a quite common effect, for example when lower-margin but high-revenue hardware and software deliveries are first made in IT projects and then more profitable consulting services are invoiced. With this nine-month result, we see ourselves fully on course to achieve our already raised annual forecast,” said Thomas Volk, CEO of CANCOM SE. Group segments contribute equally to sales and earnings growth CANCOM also continued its existing growth trend in Annual Recurring Revenue, a key figure in the Cloud Solutions segment and particularly important for corporate strategy. ARR, which reflects recurring revenues from managed services contracts and the AHP Enterprise Cloud, amounted to EUR 156.6 million as of 30 September 2019, 25.3 percent up on the previous year (Sept 2018: EUR 125.0 million). This development was achieved without acquisition support, i.e. completely organically. CANCOM thus increased its ARR by 7.6 percent in the third quarter alone, compared with June 2019 (June 2019: EUR 145.5 million). “The sustained high growth rate of the ARR shows that our transformation towards recurring revenues continues to make great progress,” said Volk. In the Group segment IT Solutions, sales rose by 21.9 percent to EUR 961.8 million in the first nine months (prior year: EUR 789.1 million). At EUR 48.3 million, EBITDA (adjusted) was 12.6 percent above the comparable figure (prior year: EUR 42.9 million). The EBITDA margin (adjusted) was 5.0 percent (prior year: 5.4 percent). The figures for the third quarter of 2019 in the Cloud Solutions segment were: Revenue EUR 76.8 million (prior year: EUR 65.0 million), EBITDA (adjusted) EUR 20.9 million (prior year: EUR 16.8 million) and EBITDA margin (adjusted) 27.2 percent (prior year: 25.8 percent). In the IT Solutions segment the figures amounted to: Revenue EUR 306.9 million (prior year: 290.2 million Euro), EBITDA (adjusted) EUR 17.3 million (prior year: EUR 16.2 million) and EBITDA margin (adjusted) 5.6 percent (prior year: 5.6 percent). Acquisition of Novosco expands managed services business CANCOM Group’s complete interim report has been published in the Investors section of the Company’s website at www.cancom.de Information: Contact
14.11.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | CANCOM SE |
Erika-Mann-Straße 69 | |
80636 Munich | |
Germany | |
Phone: | +49-(0)89/54054-0 |
Fax: | +49-(0)89/54054-5119 |
E-mail: | info@cancom.de |
Internet: | http://www.cancom.de |
ISIN: | DE0005419105 |
WKN: | 541910 |
Indices: | MDAX, TecDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 912711 |
End of News | DGAP News Service |