DGAP-News: CANCOM: Strong revenue increase in the first quarter but lower margins
DGAP-News: CANCOM SE
/ Key word(s): Quarter Results/Quarterly / Interim Statement
CANCOM: Strong revenue increase in the first quarter but lower margins - Group revenue in the first quarter of 2020 increased by 27.3 percent to EUR 453.8 million compared to the prior year. - EBITDA of EUR 26.0 million in the first quarter, 3.5 percent above prior year's figure, including a one-time negative special effect from Executive Board severance payment amounting to EUR 2.4 million. EBITDA margin declines to 5.7 percent - At EUR 189.1 million, Annual Recurring Revenue (ARR) achieved a growth rate of 35.5 percent compared to the prior year. - Annual forecast for fiscal year 2020 confirmed. Munich, Germany, 18 June 2020 - The CANCOM Group has started the 2020 financial year with an increase in revenue of 27.3 percent. Revenue in the first quarter rose to EUR 453.8 million (prior year: EUR 356.6 million). In organic terms, i.e. without taking into account company acquisitions, revenue growth was 22.7 percent. Within the overall high demand for IT products and IT services, the sale of software licenses and hardware for mobile working such as laptops and tablets was the main reason for this high increase in revenue. "We achieved an outstanding revenue performance in the first quarter and were able to acquire many new customers. There was particular demand for laptops and tablets for working on the move or in the home office. High sales in the PC client business, which has lower margins than the Professional and Managed Services business, and the special effect of the Executive Board severance payment are the main reasons for the lower EBITDA margin," said Rudolf Hotter, CEO of CANCOM SE. Cloud Solutions grows by 35.0 percent, IT Solutions by 25.5 percent The group segment IT Solutions contributed to the strong revenue development with revenue of EUR 366.3 million in the first quarter (prior year: EUR 291.8 million). This corresponds to a growth rate of 25.5 percent. EBITDA amounted to EUR 14.1 million and was thus 1.8 percent higher than in the prior year (prior year: EUR 13.8 million). The EBITDA margin was 3.8 percent (prior year: 4.7 percent). Annual forecast for 2020 confirmed The forecast for the CANCOM Group's financial year 2020 is therefore unchanged: The Executive Board of CANCOM SE expects a moderate increase in revenues for the CANCOM Group. Group gross profit, Group EBITDA and Group EBITA are also expected to increase moderately compared to the prior year. CANCOM Group's complete interim statement has been published in the Investors section of the Company's website at www.cancom.de About CANCOM The CANCOM Group's range of IT solutions includes consulting, implementation, services, and the management of IT systems. Customers benefit from the extensive expertise as well as a holistic and innovative portfolio that covers the IT requirements that are necessary for a successful digital transformation. As a hybrid IT integrator and service provider, the Company provides an integrated range of services and solutions including business solutions and managed services, such as cloud computing, analytics, enterprise mobility, IT security, hosting, and as-a-service offerings. With more than 4,000 employees worldwide, the internationally active CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium, Great Britain, and the USA. The CANCOM Group is led by Rudolf Hotter (CEO) and Thomas Stark (CFO). The company is headquartered in Munich. CANCOM has an annual revenue of around EUR 1.5 billion and its parent company, CANCOM SE, is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105). Contact Note Data protection notification General information on the use of data by CANCOM
18.06.2020 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: | [email protected] |
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: | 1072901 |
End of News | DGAP News Service |
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1072901 18.06.2020
Cancom SE Stock
With 6 Buy predictions and not the single Sell prediction the community is currently very high on Cancom SE.
As a result the target price of 37 € shows a positive potential of 26.19% compared to the current price of 29.32 € for Cancom SE.