DGAP-News: CANCOM: First quarter lays good foundation for meeting full-year forecast

CANCOM: First quarter lays good foundation for meeting full-year forecast

- CANCOM achieves 7.9 percent revenue growth, 19.2 percent EBITDA growth and 37.0 percent EBIT growth in the first quarter of 2021.

- Annual Recurring Revenue (ARR) increases by 18.6 percent compared to the prior year to EUR 224.3 million.

- Cash flow from operating activities strongly improved.

- Positive annual forecast for financial year 2021 confirmed.

Munich, Germany, 12 May 2021 - In the first quarter of 2021, the CANCOM Group laid a good foundation for achieving its forecast for the year. At EUR 372.7 million, Group revenue was up 7.9 percent on the already outstandingly high figure for the prior year (prior year: EUR 345.3* million). In organic terms, i.e. excluding acquisitions, revenue growth was 6.9 percent. In terms of EBITDA, CANCOM achieved year-on-year growth of 19.2 percent to EUR 31.0 million (prior year: EUR 26.0 million). The organic figure was 17.4 percent. The EBITDA margin was correspondingly 8.3 percent in the first quarter of 2021 (prior year: 7.5 percent). EBIT rose by 37.0 percent to EUR 16.2 million (prior year: EUR 11.8 million).
Revenue growth was primarily characterised by significant increases in the IT Solutions segment. In contrast, the Cloud Solutions segment was the main driver of the increase in EBITDA.

"In a quarter with a continuous lockdown in Germany, we have exceeded the prior year's figures in terms of revenue and earnings, even though the same quarter last year was without any restrictions related to the pandemic. With this tailwind we are confident going into the rest of the year," said Rudolf Hotter, CEO of CANCOM SE.

Cash flow from operating activities amounted to EUR -11.9 million in the first quarter of the current financial year (prior year: EUR -60.4 million). The operating cash flow was thus significantly improved not only compared to the exceptional value of the same quarter of the prior year, but also compared to the level of the comparable quarters of 2019 and 2018. Cash and cash equivalents stood at EUR 299.5 million as at 31 March 2021 (31 December 2020: EUR 338.4 million).

IT Solutions drives Group revenue, Cloud Solutions delivers outstanding margin
With revenue of EUR 296.7 million, an increase of 9.2 percent, the IT Solutions Group segment was the main contributor to the CANCOM Group's growth in the first quarter (prior year: EUR 271.7 million). EBITDA was EUR 13.1 million, down 7.0 percent on the prior year (prior year: EUR 14.1 million). The EBITDA margin fell accordingly to 4.4 percent (prior year: 5.2 percent).

In the Cloud Solutions segment, CANCOM achieved a 3.3 percent increase in revenue to EUR 76.0 million in the first quarter of 2021 (prior year: EUR 73.6 million). EBITDA rose by 19.0 percent to EUR 22.5 million (prior year: EUR 18.9 million), making the main contribution to the increase in Group EBITDA. The EBITDA margin in the Cloud Solutions segment was thus an outstanding 29.6 percent (prior year: 25.6 percent).
Annual Recurring Revenue (ARR) was EUR 224.3 million as at 31 March 2021, up 18.6 percent on the prior year (31 March 2020: EUR 189.1 million).

Annual forecast for 2021 confirmed, but planning more difficult
"Despite the existing difficulties due to the global semiconductor shortage and the resulting difficulty in planning our business development, we remain convinced on the basis of the results of this first quarter that we will meet our full-year forecast," said Hotter.

The forecast for the CANCOM Group's financial year 2021 therefore remains unchanged: Significant growth in Group revenue, Group gross profit and Group EBITDA. Very significant growth in Group EBITA.
The forecast for the segments is also unchanged: Very significant growth in revenue and EBITDA as well as ARR in the Cloud Solutions segment. Significant growth in revenue and EBITDA in the IT Solutions segment.

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

*Note: The CANCOM Group has made a permanent change to its accounting policy with effect from the beginning of the financial year 2021. Detailed explanations of the background have already been described in sections A.3.2.2 and A.3.2.5 of the notes to the consolidated financial statements in the 2020 annual report. The effects of the change in the first quarter are also presented in the interim financial statements as at 31 March 2021 in the section on the earnings, financial and assets position. The change relates to the recognition of revenue for certain business transactions in connection with the sale of software licences (principal/agent classification). To improve the comparability, the prior year's figures were adjusted. The change has no effect on the earnings items EBITDA, EBITA, EBIT and profit for the period.

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 worldwide, the internationally active CANCOM Group and its efficient partner network ensure market presence and customer proximity in Germany, Austria, Switzerland, Belgium, the United Kongdom 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 1.3 billion and its parent company, CANCOM SE, is listed in the MDAX and TecDAX of the Frankfurt Stock Exchange (ISIN DE0005419105).

Contact
Sebastian Bucher
Manager Investor Relations
+49 89 54054 5193
sebastian.bucher@cancom.de

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