Press

11.08.2011
CANCOM AG: considerable increase of profitability in the first half of 2011

Munich, Germany, 11th August 2011 - CANCOM AG today published the 6-months report for the financial year 2011 and thereby confirmed the excellent preliminary figures. In addition to an ongoing strong organic growth, the IT group, one of the TOP 3 German systems integrators, was able to improve especially its profitability.

The figures for the first half of 2011 and the comparable figures for 2010 had to be adjusted in line with international accounting standards to take into account the sale of HOH Home of Hardware GmbH and the proposed sale of CANCOM Ltd. UK (discontinued operations).

In particular, the group's consolidated sales revenues were up 23 percent year-on-year to EUR 251.5 million, compared with EUR 204.4 million in the first half of 2010. Consolidated sales grew up 19.2 percent year-on-year in the second quarter, from EUR 106.5 million to EUR 126.9 million. Thereof 17.5 percent were solely due to organic growth.

The consolidated gross profit for the first half of 2011 was up 15.2 percent, from EUR 67.1 million to EUR 77.3 million.

Adjusted consolidated EBITDA for the first six months of the current financial year was EUR 10.7 million, about 101.9 percent higher than EUR 5.3 million recorded in the first half of 2010. This is equivalent to a significantly increased EBITDA margin of 4.3 percent as compared with 2.6 percent in 2010. Adjusted consolidated EBITDA for the second quarter of 2011 was up 106.9 percent year-on-year, from EUR 2.9 million to EUR 6.0 million. This is equivalent to an EBITDA margin of 4.7 percent in Q2/2011 compared with 2.7 percent in Q2/2010.

Adjusted consolidated EBIT for the first half of 2011 amounts to EUR 8.8 million, compared with EUR 3.9 million in the first half of 2010. This represents a year-on-year increase of 125.6 percent. The adjusted consolidated EBIT figure for the second quarter of 2011 is EUR 5.1 million compared with EUR 2.1 million in the second quarter of 2010 - an increase of 142.9 percent.

All in all, the adjusted earnings per share from continuing operations for the first six months of the current financial year were EUR 0.51 compared with EUR 0.21 in 2010.

Before the adjustment to factor out substantial non-recurring items (earnings from a capital consolidation/bargain purchase) and amortisation of intangible assets from the purchase price allocation both in the current financial year and previous year, the consolidated EBITDA for the first half of 2011 is at EUR 10.8 million, according to the preliminary figures, as compared with EUR 5.9 million in the first half of 2010. Consolidated EBITDA for the second quarter went up to EUR 6.1 million from EUR 2.8 million in Q2/2010. Consolidated EBIT for the first half of 2011 was EUR 7.6 million, compared with EUR 4.1 million in the first half of 2010. The figures for the second quarters of 2011 and 2010 were EUR 4.5 million and EUR 1.8 million respectively. Earnings per share from continuing operations rose from EUR 0.24 in 2010 up to EUR 0.44 in the first six months of the current financial year.

CANCOM feels that presenting adjusted earnings figures is more appropriate for assessing the group's operations and gives the reader a more comparable and true picture of the group's earnings position over time.

The full 6-months report 2011 is published at www.cancom.de/berichte.

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Sebastian Bucher
Manager Investor Relations