13.08.2018
CANCOM SE DE0005419105
DGAP-News: CANCOM: Accelerated growth, higher profitability and determined investments in the development of highly scalable cloud and software business areas
DGAP-News: CANCOM SE / Key word(s): Half Year Results
CANCOM: Accelerated growth, higher profitability and determined investments
in the development of highly scalable cloud and software business areas
13.08.2018 / 09:56
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
CANCOM: Accelerated growth, higher profitability and determined investments
in the development of highly scalable cloud and software business areas
- A new era in corporate transformation: Cloud Solutions for the first time
main source of earnings, two international acquisitions and special
investments of more than four million euros.
- First half of 2018 brings improved growth and increased profitability:
Revenue +13.5 percent, EBITDA (adjusted) +25.8 percent, EBITDA margin
(adjusted) 8.0 percent.
- Management Board confirms growth targets for 2018.
Munich, Germany, 13 August 2018 - 2018 marks a turning point for the CANCOM
Group: For the first time, CANCOM generates more earnings in the Cloud
Solutions segment than in the IT Solutions segment and for the first time
two international company acquisitions were made in one year. But above all,
the IT company is now investing heavily in reinvesting its earnings in the
new highly scalable business areas of cloud technologies and its proprietary
IT infrastructure management software AHP.
"We are moving CANCOM substantially away from the purely linear growth model
of an IT systems house and reseller to the highly scalable business areas of
a service and software provider. We are working hard to grow in both group
segments. But we are now determinedly and in new magnitudes reinvesting our
earnings in structures, personnel and companies that will enable
exponentially growing recurring sales in the medium term. For us, these
revenues can be found in the software and managed services business,"
explains Klaus Weinmann, founder and CEO of CANCOM SE.
The recently announced acquisition of the UK IT service provider OCSL
underlines the thrust of the CANCOM Group towards the cloud-ready
international - and thus primarily English-speaking - IT markets.
First half of 2018: revenues growth accelerated, profitability increased
These investments and acquisitions are made possible by the continued
dynamic business development of the CANCOM Group. In the first half of 2018,
this led to a 13.5 percent improvement in consolidated revenues to EUR 608.5
million (previous year: EUR 535.9 million). In addition, CANCOM exceeded the
growth rate of the previous year (previous year: 8.9 percent) with this
growth. The increase in revenues in the first half of 2018 was mainly driven
by good customer demand across the entire CANCOM portfolio. Added to this
were the positive effects from recently acquired companies as a result of
the offensive acquisition strategy of the CANCOM Group.
The CANCOM Group's continued high profitability is reflected in the adjusted
key earnings figures for the first half of 2018: EBITDA (adjusted) rose by
25.8 percent against the comparable previous year's figure to EUR 48.7
million (comparable previous year: EUR 38.7 million). This corresponds to an
EBITDA margin (adjusted) of 8.0 percent (comparable previous year: 7.3
percent). Since CANCOM applied the accounting rule IFRS 16 for the first
time in its half-year financial report and this had an impact on EBITDA, the
figures for the previous year - also for the group segments - were also
adjusted for the IFRS 16 effect in order to ensure comparability.
At EUR 36.7 million, EBITA (adjusted) was 30.1 percent higher than the
comparable figure for the same period last year (previous year: EUR 28.2
million). The application of IFRS 16 had no significant impact here or in
any further key figures of the income statement.
EBITDA (adjusted) in particular shows the earnings achieved from operating
business, i.e. before deduction of the special investments and incidental
costs for company takeovers amounting to around EUR 4.4 million. They thus
show the actual earning power of the CANCOM Group and the key figures
comparable with those of the previous year. At the same time, only the
adjustment allows comparison with the historical peer group, because it
compensates for the increasing differences in CANCOM's business model and
strategy compared to the currently common peer companies.
"In the IT trade and traditional IT service business, profits must be
realized in the shortest possible time, as due to the development towards
the rising use of cloud solutions margins tend to be higher today than
tomorrow. With our AHP software, financial strength and existing experience
in the software and shared managed services business, we have a great
opportunity to conquer new markets and business models. To achieve this, we
are spending money today in order to turn the current continuous growth into
a more exponential growth in the medium term," said Weinmann.
The Cloud Solutions segment contributed 37.6 percent year-on-year revenue
growth to EUR 109.7 million in the first half of 2018 (previous year: EUR
79.7 million). Segment EBITDA (adjusted) amounted to EUR 27.3 million, up
49.2 percent against the comparable previous year's figure (comparable
previous year: EUR 18.3 million).
In the IT Solutions segment, CANCOM achieved a 9.3 percent increase in
revenues to EUR 498.8 million (previous year: EUR 456.2 million). Segment
EBITDA (adjusted) rose by 7.2 percent year-on-year to EUR 26.7 million
(comparable previous year: EUR 24.9 million).
Forecast for 2018 confirmed
Based on the business development achieved in the first half of the current
financial year and assuming the premises set out in the Annual Report 2017,
the Management Board confirms the CANCOM Group's growth targets for
financial year 2018, which envisage a significant increase in revenues,
gross profit, EBITDA, EBITA and EBIT for the Group. For the Cloud Solutions
and IT Solutions segments, the targets are also for a significant increase
in revenues, gross profit, EBITDA, EBITA and EBIT, with growth rates in the
Cloud Solutions segment expected to be above the level of the IT Solutions
segment.
As an orientation for the scope of special investments in strategic growth
projects, the Management Board states a planned investment volume for the
entire 2018 financial year of around EUR 10 million.
The CANCOM Group's complete semi-annual report as of 30 June 2018 is
published in the Investors section of its website at www.cancom.de.
About CANCOM
As Digital Transformation Partner, CANCOM guides businesses into the digital
future. The CANCOM Group's business-oriented IT solution range encompasses
consulting, implementation and services. Clients benefit from extensive
expertise and an innovative portfolio that covers business IT requirements
for a successful digital transformation. IT trends such as cloud computing,
analytics, enterprise mobility or security are addressed with smart business
solutions and services.
The CANCOM Group operates internationally and has more than 3,000 employees
worldwide. Together with a powerful partner network, many geographies enjoy
market presence allowing close client proximity including Germany, Austria,
Switzerland, Belgium, the United Kingdom and the United States. CANCOM Group
is headed by Klaus Weinmann (Founder and CEO), Rudolf Hotter (COO), Thomas
Volk (President and General Manager) and Thomas Stark (CFO). The company's
headquarter is in Munich, Germany. CANCOM SE is listed on the Frankfurt
Stock Exchange in the index TecDAX (ISIN DE0005419105) and the group
achieves an annual turnover of more than one billion euros.
Contact:
Sebastian Bucher
Manager Investor Relations
Phone: +49 89 54054 5193
Email: [email protected]
---------------------------------------------------------------------------
13.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
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: [email protected]
Internet: http://www.cancom.de
ISIN: DE0005419105, DE0005419105
WKN: 541910, 541910
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
---------------------------------------------------------------------------
713351 13.08.2018
|
Weitere Ad-hoc und Unternehmensrelevante Mitteilungen zu
CANCOM SE ISIN: DE0005419105 können Sie bei EQS abrufen
IT-Infrastruktur , 541910 , COK , XETR:COK