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- CANCOM increases Group sales in Q3 by 8.3% year-on-year to EUR 393.2 million
- Significant recovery of EBITDA after a second quarter marked by a lockdown; EBITDA at EUR 31.7 million
- Update of the sales and earnings forecast for the entire year 2020
Munich, October 27, 2020 - According to the preliminary figures available today, the CANCOM Group achieved consolidated sales of EUR 393.2 million in the third quarter of 2020. This represents an improvement of 8.3 percent compared to the previous year (previous year: EUR 363.0 million). Preliminary earnings before interest, taxes, depreciation and amortization (EBITDA) for the 3rd quarter were EUR 31.7 million, compared with EUR 33.6 million in the previous year. The previous year's EBITDA includes a positive one-off effect of EUR 1.6 million from the sale of a property.
Compared to the previous quarter, EBITDA rose by 58.2 percent (previous quarter: EUR 20.1 million). CANCOM thus showed a significant improvement in the 3rd quarter compared with the 2nd quarter of 2020, which was marked by the corona pandemic.
Nine-month period 2020 with higher sales but lower profitability
For the nine-month period of 2020, CANCOM reports a significant year-on-year growth in sales of 8.2 percent to EUR 1,219.2 million (previous year: EUR 1,126.5 million). Preliminary EBITDA for the nine-month period is EUR 77.8 million (previous year: EUR 87.2 million). The result for the first nine months of 2020 is burdened by special effects of around EUR 5 million. In addition, on-site services could often not be provided or could only be provided with delays due to corona protection measures.
CANCOM achieved the sales increases in particular with home office and remote desktop solutions in the IT Solutions segment, which has lower profitability margins than the Cloud Solutions segment.
Update of the forecast 2020
In view of increasing corona case numbers and emerging service limitations at customers, the fourth quarter 2020 results are expected to be affected. CANCOM sees a high demand for solutions for mobile working. On the other hand, however, considerable effects are expected in the area of services. Taking into account the development of business in the first nine months of 2020 and based on today's assessment of the impact of the Covid 19 pandemic on business in the fourth quarter of 2020, CANCOM is updating its forecast for the current financial year.
CANCOM expects a significant increase in sales for the financial year 2020 compared to 2019. Previously, CANCOM had only forecast a moderate increase in sales. CANCOM continues to expect a moderate increase in the Group's gross profit. CANCOM expects Group EBITDA to be in the range of EUR 110 to 115 million, compared with the previous year's figure of EUR 119.2 million. CANCOM expects a very significant year-on-year decline in Group EBITA. Until now, CANCOM has assumed a moderate increase compared to the previous year.
For the Group segment Cloud Solutions, the Management Board continues to expect a significant increase in sales, gross profit, EBITDA and EBITA. With regard to Annual Recurring Revenues (ARR), the Management Board also continues to expect a significant increase compared with the figure for December 2019.
For the Group segment IT Solutions, the Executive Board now expects a significant increase in sales; previously CANCOM had only anticipated a moderate increase. Gross profit is expected to continue to grow moderately. CANCOM also anticipates a very significant decline in EBITDA and EBITA compared with the moderate increase previously forecast.
CANCOM will publish the final results for the 3rd quarter 2020 on November 12, 2020.
With regard to the definition of the alternative performance indicators EBITDA, EBITA and Annual Recurring Revenue (ARR), CANCOM refers to the corresponding definitions on page 22 of the Annual Report 2019, which is published on the Company's website.
CANCOM SE, Erika-Mann-Strasse 69, 80636 Munich
ISIN DE0005419105, Frankfurt Stock Exchange (MDAX, TecDAX, Prime Standard)
Contact / Notifying person:
Florian Mangold, Specialist Investor Relations
+49 (0) 89 540545511