Bechtle AG: Bechtle Posts Double-Digit Revenue and Earnings Growth

Bechtle Posts Double-Digit Revenue and Earnings Growth
 

- Revenue and earnings growth continues in the second quarter

- EBT margin remains high

- Outlook for the year as a whole positive
 

Neckarsulm, 10 August 2017 - Bechtle AG was able to maintain the high growth rate recorded at the start of the year in the second quarter. From April to June 2017, revenue surged 13.7 per cent to EUR822.2 million. Operating income (EBIT) saw an equally dynamic 13.2 per cent increase to EUR36.5 million. Earnings before taxes (EBT) are at EUR36.2 million, and the EBT margin remains at an unchanged high level at 4.4 per cent. As of 30 June 2017, Bechtle had a total of 7,909 employees, 581 or 7.9% more than in the previous year.

"Bechtle continued its success development in the second quarter. After the first six months of the year, our revenue and profit were significantly above the previous year's figures. At the same time, we are continuing to invest in a variety of strategic projects that will strengthen our future viability," explains Dr. Thomas Olemotz, Chairman of the Executive Board of Bechtle AG.

System house & managed services segment grows across the board
The IT system house & managed services segment increased its revenue 13.6 per cent to EUR572.9 million. The growth was attributable to the German, Austrian and Swiss markets. Revenues rose sharply in the application solutions and managed services segments as well in the classic project business. Customer demand for modern IT architectures and the associated consulting requirements remained high. Operating income climbed 14.2% to EUR24.6 million in the second quarter of 2017. At 4.3 per cent, the EBIT margin remained at the prior-year level.

IT E-commerce posts strong domestic development
In the IT e-commerce segment, revenue climbed 13.9 per cent to EUR249.3 million in the second quarter of 2017 Domestic growth was particularly strong as in the first quarter. Bechtle was able to grow 22.9 per cent here. But the foreign trading companies also posted double-digit revenue growth of 10.4 per cent. Year to year, EBIT increased 11.0 per cent to EUR11.9 million (previous year: EUR10.7 million). The margin declined slightly from 4.9 to 4.8 per cent.

Investing in the future
The Bechtle Group's current financial year is characterised by investments to ensure future competitiveness. At the end of the first half of the year, the total volume amounted to EUR33 million, and thus almost at the level of the 2016 fiscal year (EUR39.6 million). In addition to investing in buildings for additional employees, the funds were mainly used for strategic projects such as the implementation of a digital Bechtle marketplace, the establishment of the Bechtle Clouds platform or the extensive modernisation of the data centre. Investments are expected to total around EUR60 million for the year as a whole.

Annual forecast confirmed
The Executive Board continues to expect significant revenue and earnings growth for the year as a whole and confirms the forecast for 2017 published in March. "After the first half of the year, our revenue and earnings are higher than the target corridor of our expectations for 2017 as a whole. At the same time we are benefiting from our outstanding positioning as an IT provider, increasingly also in the managed and cloud services and application solutions segments. Based on the current assessment, we also expect a continuation of the successful development of Bechtle for the second half of the year," said Dr. Thomas Olemotz.


Bechtle KPIs for the Second Quarter and First Half of 2017

Preliminary note:
Since 1 January 2017, the activities of the Comsoft companies in Germany, Austria and Switzerland have been allocated to the IT system house & managed services segment (previously IT e-commerce). The prior-year figures of the two segments have been adjusted accordingly.
 

¹ including time deposits and securities
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The interim report for the second quarter of 2017 is available for download at bechtle.com/reports.

About Bechtle.
Bechtle AG has about 70 IT system houses in Germany, Austria and Switzerland. With its e-commerce companies in 14 countries, Bechtle is one of Europe's leading online IT dealers. Founded in 1983, the company is headquartered in Neckarsulm, Germany, and currently has around 8,000 employees. Bechtle offers its more than 73,000 customers from the fields of industry and trade, the public sector and the financial market a comprehensive, cross-vendor portfolio of IT infrastructure and IT operation solutions. Bechtle is listed in the technology index TecDAX. In 2016, the company's revenue amounted to approximately EUR3.1 billion.
For more information, see: bechtle.com