18. June 2020 | Corporate News

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.
The CANCOM Group’s EBITDA in the first quarter of 2020 rose by 3.5 percent year-on-year to EUR 26.0 million (prior year: EUR 25.1 million). The EBITDA margin was thus 5.7 percent (prior year: 7.0 percent).

“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
In the Group segment Cloud Solutions, CANCOM achieved a 35.0 percent increase in revenue in the first quarter of 2020 to EUR 87.5 million (prior year: EUR 64.8 million). EBITDA rose by 19.3 percent to EUR 18.9 million (prior year: EUR 15.8 million), which corresponds to an EBITDA margin of 21.6 percent (prior year: 24.4 percent). Recurring revenues, the so-called Annual Recurring Revenue (ARR), amounted to EUR 189.1 million as at 31 March 2020, up 35.5 percent on the prior year (prior year: EUR 139.6 million).

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
“It is already becoming apparent that, as expected, the second quarter will be significantly burdened by the corona crisis and the almost complete shutdown in April and May. Although uncertainty about the further economic development remains very high, in view of the high growth rate in the first quarter and assuming a normalization of the general conditions in the third and fourth quarters, we are maintaining our annual forecast of moderate revenue and earnings growth,” said Hotter.

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.
For the Group segment IT Solutions, the Executive Board expects a moderate increase in revenue, gross profit, EBITDA and EBITA.
For the group segment Cloud Solutions the Executive Board expects a significant increase in revenue, gross profit, EBITDA and EBITA. In addition, a significant increase in Annual Recurring Revenue (ARR) is expected compared to the figure for December 2019.

CANCOM Group’s complete interim statement has been published in the Investors section of the Company’s website at

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 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).