CANCOM : for the first time generates more EBITDA from Cloud than from IT segment

CANCOM for the first time generates more EBITDA from Cloud than from IT segment

- Q1 2018 brings a plus of 19.7 percent in consolidated group revenue

- Consolidated group EBITDA grew by 20.9 percent. The EBITDA growth even reached 26.8 percent after being adjusted for extraordinary growth investments

- Acquisition of British company Ocean to strengthen international activities in the business field Managed Services

Munich, Germany - In the first quarter 2018, CANCOM Group has achieved dynamic growth rates in key financial indicators. A positive development in the business field Managed Services and in the business with the self-developed IT management platform AHP paved the way for this positive development. The start of the year was completed by the successful acquisition of around 82 percent of the shares of British company Ocean Intelligent Communications. By this, CANCOM pushes forward its strategic advancement of the business field Managed Services and its international activities.

"In the first quarter we again profited from the continuing demand for state-of-the-art IT systems and IT management solutions. Step by step we give CANCOM Group an even more sustainable and more international set-up to go further along this path," said Klaus Weinmann, CEO of CANCOM SE.

Consolidated group revenue grew by 19.7 percent to EUR 307.9 million (previous year: EUR 257.3 million). The consolidated group EBITDA could be raised by 20.9 percent to EUR 20.2 million (previous year: EUR 16.8 million). With EUR 21.3 million, the adjusted EBITDA of CANCOM Group even showed a growth rate of 26.8 percent, whereby extraordinary investments for internationalisation and the strategic expansion of the cloud and managed services business were recognised. EBITDA margin increased by 0.1 percentage points to 6.6 percent (previous year: 6.5 percent). The EBITA in the first three months of the financial year was EUR 16.4 million, representing an improvement by 24.7 percent (previous year: EUR 13.1 million).

Segment Cloud Solutions generates higher EBITDA than IT Solutions segment

In the first quarter 2018, the revenue in the group segment Cloud Solutions was improved by CANCOM by 39.7 percent to EUR 52.3 million (previous year: EUR 37.5 million). The EBITDA for the segment rose to EUR 12.1 million or by 44.6 percent respectively (previous year: EUR 8.3 million). Thus, for the first time ever, it was higher than the EBITDA in the IT Solutions segment. EBITDA margin was 23.0 percent (previous year: 21.8 percent).

With EUR 255.5 million CANCOM was able to raise revenues in the second group segment IT Solutions in the first quarter compared to previous year's period by 16.3 percent (previous year: EUR 219.8 million). The segment's EBITDA was by 8.4 percent above previous year's figure with EUR 11.5 million (previous year: EUR 10.6 million). This corresponded to an EBITDA margin for the segment of 4.5 percent (previous year: 4.8 percent).

With results of the first quarter in mind, the Executive Board of CANCOM SE sees CANCOM Group progressing well towards reaching the forecast for 2018.

The full interim statement of CANCOM Group as at March 31, 2018 has been published on the website www.cancom.de in the section investors.

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 an extensive expertise and an innovative portfolio that covers business IT requirements for a successful digital transformation with smart business solutions and services in IT trends such as cloud computing, analytics, enterprise mobility or security. The CANCOM Group operates internationally and its more than 2,900 employees worldwide together with its powerful partner network ensure market presence and proximity to clients in, amongst others, 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.