DATAGROUP again reports strong quarter results with significant increase in all key figures

Pliezhausen, 23 August 2022. DATAGROUP again reports excellent results for the third quarter
Revenue was up 4.9 % to EUR 125.2m. Total revenue reached EUR 372.9m in the nine-month period, corresponding to an increase of 12.7 % yoy. EBITDA grew disproportionately in the third quarter from EUR 16.7m to EUR 20.9m (+25.3 %); EBIT also improved significantly by 56.1 % from EUR 7.8m to EUR 12.2m. In the nine-month period, EBITDA was up from 47.0m to EUR 58.3m (+24.2 %), and EBIT soared from EUR 21.7m to EUR 32.7m (+50.7 %).

Revenue Development

3 revenues saw another increase by 4.9 % to EUR 125.2m (PY: EUR 119.3m). When compared to the ninemonth figures of FY 2020/2021 (01.10.2020 – 30.06.2021), DATAGROUP recorded revenue growth of 12.7 % from EUR 330.8m to EUR 372.9m. Newly acquired URANO Informationssysteme GmbH (“URANO”) and dna Gesellschaft für IT Services GmbH (“dna”), which were initially consolidated on 1 May 2021, have also contributed to this trend, albeit to a lesser extent. Organic growth was 0.5 % over the past 12 months. It should be noted that the strong organic growth in the prior periods was driven by positive one-time effects in the context of Covid-19 such as the equipment of vaccination centers in Baden-Württemberg or additional pandemic-related digitization projects, which DATAGROUP had implemented for its customers. The proportion of service revenue remains on a very high level of 82.2 %.

New sales and upselling as well as contract renewals also remained at high levels: In the reporting period from 1 October 2021 until 30 June 2022, DATAGROUP has acquired 15 new customers, 19 agreements were expanded, and 32 existing customers extended or renewed their agreements.

Andreas Baresel, Chief Executive Officer of DATAGROUP, comments on the positive development: “We take a cautious view of the emerging market trend in Germany. Our business model provides us with a good and stable basis to face economic fluctuations in Germany in a good and stable way. We are not affected by disruptions in the supply chains, neither directly nor indirectly. Our strategy to rely on a well-diversified customer portfolio of solid Mittelstand companies continues to pay off. Our standardized range of services from our modular CORBOX portfolio generates a high degree of recurring revenue as a reliable source of income with sustainable profitability.” Oliver Thome, Chief Financial Officer, adds: “We assume that DATAGROUP is well prepared for these times of economic uncertainty. We remain confident that we will meet our guidance: For the fiscal year, we anticipate revenues of between EUR 480–500m and EBITDA between EUR 72–75m. EBIT is expected to amount to EUR 39–42m.”

Earnings Development

Operating earnings before taxes, interest, depreciation and amortization (EBITDA) have surged from EUR 16.7m to EUR 20.9m in Q3 2021/2022 (+25.3%) and from EUR 47.0m to EUR 58.3m (+24.2 %) in the corresponding nine-month period. Earnings before interest and taxes (EBIT) increased from EUR 7.8m to EUR 12.2m (+56.1 %) in the third quarter. EBIT in the nine-month period improved by 50.7 % to EUR 32.7m (PY EUR 21.7m). Earnings per share (EPS) stand at EUR 0.90 in Q3 versus EUR 0.63 in the previous year, and at EUR 2.39 in the current nine-month period versus EUR 1.93 in the prior-year period.

The EBITDA margin in Q3 2021/2022 is 16.7% compared to 14.0 % in the prior-year period and 15.6 % after nine months of the fiscal year compared to 14.2 % in the prior-year period. The EBIT margin in Q3 2021/2022 was 9.7% compared to 6.5 % in the prior-year period, and 8.8 % after nine months of the fiscal year compared to 6.5 % in the prior-year period. CFO Oliver Thome explains the positive earnings development: “Our measures taken to drive profitability of DATAGROUP are working effectively. Investments in the improvement of our processes, the use of automation technologies in the provision of our services, and the further standardization of our service portfolio are reflected in a significant increase in margins. As a result, DATAGROUP’s profitability is already very close to the EBIT target of > 9%.”

Balance Sheet Development

The balance sheet is also very strong: The moderate increase in the balance sheet total from EUR 431.78m as per 30 September 2021 to EUR 440.5m as per 30 June 2022 and the quite significant increase in equity from EUR 94.3m to EUR 114.3m leads to an improvement of the equity ratio to 25.9 % compared to 21.8 % on 30 June 2021. Net debt was slightly reduced by 1.7 % from EUR 87.5m to EUR 86.0m. Cash and cash equivalents stood at EUR 42.2m at the end of the reporting period (PY: EUR 44.1m).

Cashflow

The development of cash flow from operating activities was particularly satisfying. It was up 43.1 % from EUR 40.7m to EUR 58.3m, primarily driven by the substantial increase in operating income. CAPEX remained at a low level: Investments in property, plant and equipment and intangible assets amounted to EUR 5.8m in the first three quarters of fiscal year 2021/2022 after EUR 5.6m in the comparable period a year before.

Analyst Meeting

Chief Financial Officer Oliver Thome will explain the results of the first three quarters in an online conference at 10:00 am CET today. All interested investors, analysts, and journalists are cordially invited to participate. You can register for the event under the following link:

https://register.gotowebinar.com/REGISTER/5640401611111381260

Claudia Erning
Investor Relations
T +49 7127 970-015
F +49 7127 970-033
claudia.erning@datagroup.de

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