3. May 2022 | Corporate News

CANCOM SE: Satisfactory earnings development despite revenue decline in the first quarter of 2022. Annual forecast now more defensive.

Munich, Germany, 3 May 2022 – The CANCOM Group today published preliminary key financial figures for the first quarter of 2022. According to these figures, Group EBITDA rose to € 27.2 million in the first quarter of 2022 (prior year: € 25.6 million) despite Group revenue of € 300.9 million (prior year: € 337.2 million).

“We were able to increase EBITDA by more than 6 per cent in the first quarter and thus generate a satisfactory quarterly result, although we recorded a decline in revenue. This increase in earnings was possible because our operating result is primarily determined by the services and IT-as-a-Service business. But above all, the well-known supply bottlenecks for IT hardware are an obstacle to growth for us. Customer demand remains high and so does our order book. However, contrary to our expectations, the supply situation in the IT market has deteriorated further, for example due to the lockdowns in Asia, and the changed political environment is also leading to delays in public sector orders in Germany,” said Rudolf Hotter, CEO of CANCOM SE.

According to preliminary figures for the first quarter of 2022, the CANCOM Group achieved Group revenue of € 300.9 million (prior year: € 337.2 million). Group gross profit rose to € 109.5 million in the first quarter of 2022 (prior year: € 104.9 million) and Group EBITDA was up on the prior year at € 27.2 million (prior year: €25.6m). The EBITDA margin for the first quarter of 2022 was 9.0 percent (prior year: 7.6 percent). Group EBITA was € 17.3 million (prior year: € 16.9 million).

“We had pointed out the increased uncertainty associated with the forecast this year when we published our annual forecast. Unfortunately, due to the situation in the IT hardware supply chain, we have now had to be more defensive about the forecast. We continue to expect growth in revenue and operating profit in the 2022 financial year. However, the shortage of hardware is not only affecting project business, but also new business in our IT-as-a-service offerings. Therefore, we now expect significant growth in all of our forecast metrics, except for Annual Recurring Revenue, which we continue to see with very significant growth,” said Hotter.

The full interim announcement of CANCOM Group for the first quarter of 2022 will be published on 12 May 2022 on the website in the Investors section.

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 EUR 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).