DGAP-News: CANCOM: Very high IT as a Service growth rates lead to positive EBITDA development in the Group

CANCOM: Very high IT as a Service growth rates lead to positive EBITDA development in the Group

- Group figures unchanged: Group revenue at € 300.9 million, Group EBITDA at € 27.2 million.

- Cloud Solutions revenue up 28.1 percent and Cloud Solutions EBITDA up 27.9 percent year-on-year.

- Annual Recurring Revenue (ARR) improved by 23.3 percent.

- Forecast for the 2022 financial year now assumes significant growth in revenue and earnings.

Munich, Germany, 12 May 2022 - After CANCOM had already published key financial figures for the Group, the full interim report for the first quarter of 2022 including the results in the Group segments followed today. According to the report, the CANCOM Group achieved very dynamic business development in the Cloud Solutions segment in the first quarter of 2022, with 28.1 percent revenue growth, 27.9 percent EBITDA growth and a 23.3 percent increase in ARR. The revenue and earnings performance in the IT Solutions segment, on the other hand, primarily reflected the continuing tense situation in the global IT supply chain.

At Group level, CANCOM confirmed the key financial figures already published: In the first quarter of 2022, the CANCOM Group achieved total Group revenue of € 300.9 million (prior year: € 337.2 million). Group gross profit rose to € 109.5 million (prior year: € 104.7 million) and Group EBITDA was up on the prior year at € 27.2 million (prior year: € 25.6 million). The EBITDA margin rose accordingly to 9.1 percent (prior year: 7.6 percent). Group EBITA was € 17.3 million (prior year: € 16.9 million) and Group EBIT reached € 16.2 million (prior year: € 15.1 million).

"We achieved around six percent growth in Group EBITDA in the first quarter. Our service and As a Service business has reliably ensured good earnings development and is a guarantor of long-term profitability. As a result, we were even able to achieve an increase in earnings despite a decline in revenue due to project business being affected by bottlenecks in the supply chain," said Rudolf Hotter, CEO of CANCOM.

The CANCOM Group's cash flow from operating activities in the first quarter of the current financial year was € -76.3 million (prior year: € -11.9 million). Cash and cash equivalents totalled € 486.8 million as at 31 March 2022 (31 December 2021: € 653.0 million).

Cloud Solutions very strong, IT Solutions slowed down
The Cloud Solutions segment comprises the IT as a Service business of the CANCOM Group. Revenue in the first quarter of 2022 was € 75.5 million (prior year: € 58.9 million). EBITDA rose to € 22.6 million (prior year: € 17.6 million). The EBITDA margin in the segment was 29.9 percent (prior year: 29.9 percent). The key figure for recurring revenue, ARR, which is also fully allocated to the segment, improved to € 196.2 million (prior year: € 159.1 million).

In the IT Solutions segment, which includes the project-based IT as a Concept business, revenue in the first quarter of 2022 was € 225.3 million (prior year: € 278.2 million). EBITDA was € 9.2 million (prior year: € 12.2 million) and the EBITDA margin was 4.1 percent (prior year: 4.4 percent).

Forecast 2022: Significant growth in revenue and earnings
The Executive Board of CANCOM SE adjusted the forecast for the CANCOM Group on 3 May 2022. It now expects a significant increase in Group revenue and Group gross profit in the financial year 2022, as well as a significant increase in Group EBITDA and Group EBITA. For the Cloud Solutions segment, the Executive Board also expects significant growth in revenue and EBITDA. For the ARR, the Executive Board assumes a very significant increase compared to the status as at 31 December 2021. In the IT Solutions segment, significant growth in revenue and EBITDA is expected.

"With our forecast of significant growth in revenue and earnings in the current financial year, we have reacted to the significantly changed environment with unpredictably long Corona lockdowns in China, lowered forecasts for economic growth in Germany and the world as well as the ongoing problems in the IT supply chain. Nevertheless, we continue to enter the rest of the year with a growth perspective and a lot of confidence in our business model. We continue to see high demand from customers, a record high order backlog and resilient earnings development for the CANCOM Group. This is the basis for our growth outlook for 2022," said Hotter.

The complete interim statement of the CANCOM Group for the first quarter of 2022 is published on the website www.cancom.de in the Investors section.

About CANCOM
As a Digital Transformation Partner, CANCOM accompanies organizations into the digital future. CANCOM supports customers to simplify complex enterprise IT and increase their business success through the implementation of modern technology. In order to comprehensively meet the IT needs of companies, organizations, and the public sector, CANCOM delivers tailor-made IT end to end from a single source.
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, CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium and the USA. The CANCOM Group is led by Rudolf Hotter (CEO), Thomas Stark (CFO) and Rüdiger Rath (COO). The company is headquartered in Munich. CANCOM generated revenue of around € 1.3 billion in the financial year 2021. Its parent company CANCOM SE is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

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Sebastian Bucher
Manager Investor Relations
+49 89 54054 5193
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