Revenue up 21.9%
EBITDA margin approaching 13 percent mark
Dividend to be raised again

Pliezhausen, January 22, 2019. DATAGROUP SE (WKN A0JC8S) today publishes the audited consolidated results for FY 2017/2018 and confirms the preliminary figures reported end of November: Revenue and operating earnings achieved new all-time-highs, while EBITDA margin is already approaching the target aimed for in 2020/21. Management expects the dynamic development to continue in the current fiscal year.

“With the tailwind of a still favourable market environment and the positive basis achieved last fiscal year we have again started 2017/2018 with optimism. Nevertheless, we were “allowed” to revise our expectations upwards once yet another time”, says DATAGROUP-CEO Max H.-H. Schaber. Generating revenue of EUR 272.1m (previous year EUR 223.1m) and earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 34.5m (EUR 27.0m), we did not only record new all-time-highs at the end of the fiscal year 2017/2018 (01.10.2017 – 30.09.2018) but also made a great leap forward in terms of revenue and earnings for the third time in a row. In comparison to the previous year, revenue grew by 21.9%, and operating earnings improved even more (+27.4%) on an unchanged ratio of service revenues (81%). Earnings before interest and taxes (EBIT) were up 9.9% and reached EUR 20.4m (EUR 18.6m). Net income rose by 15% to EUR 12.9m (EUR 11.2m), earnings per share (EPS were EUR 1.55 (EUR 1.41 ).

The disproportionately low increase in earnings below the EBITDA level was due to investments made in the past years, which build the foundation for today’s growth: Depreciation on fixed assets increased to EUR 10.1m (EUR 5.3m) without purchase price allocation. Assets had substantially increased last fiscal year because of the first-time consolidation of acquired companies and grew through the investments above. Amortisation in accordance with the purchase price allocation rose to EUR 4.0m (EUR 3.2m) in the year under review as a result of acquisition activities.

DATAGROUP again generated a strong operating cash flow of EUR 19.0m (EUR 32.5m), which is just below the level achieved in the previous year when adjusted for special factors (EUR 24.0m vs. EUR 26.7m). The modified equity ratio increased slightly from 28.9% to 31.9% and leaves enough scope to continue organic and acquisition-related growth.

Based on the continued good business development, the solid balance sheet structure and the good liquidity base, Management and Supervisory Board will propose to the Annual General Meeting, which is scheduled to take place at the company headquarter in Pliezhausen on March 14, 2019, to raise the dividend from 45 to 60 cents per share.

Structural adjustments help to exploit growth potential

“With a solid market positioning, many satisfied customers and major new clients DATAGROUP successfully continues on its way to become the leading IT outsourcing company for the German Mittelstand companies”, says COO Dirk Peters. “Our aim in the next fiscal year is to achieve further growth and to consistently take advantage of the opportunities offered by the market. To advance these ambitious growth objectives at all levels we started a large-scale branding process in April last year.”

As a result, we have initiated structural developments to position DATAGROUP even better for seizing existing growth opportunities: For instance, the central supply units within the existing outsourcing portfolio, SAP and service desk, have been developed further. In his role as Chief Production Officer, Andreas Baresel has been made in charge since October 1, 2018 to ensure that the complex CORBOX services are optimally adjusted to each other.

Especially because of the growing demand for transformation consulting around topics such as Cloud, platform, application and SAP landscape, our service portfolio has been expanded by IT transformation. “A successful implementation of transformation projects is the basis for stronger relationships to existing customers and the acquisition of new outsourcing customers”, says Andreas Baresel (CPO). Last fiscal year, the Group also strengthened its position in the dynamic growth segment of Robotic Process Automation (RPA) through the acquisition of Almato GmbH, making a long-term business partner an integral part of the Group.

Good start to the new fiscal year – Positive outlook

The start to the new reporting period points to a continuation of dynamic growth in revenue and earnings. In the first few months, we have secured a significant order volume with new customers and extended existing contracts. The Management Board traditionally puts the outlook for the current fiscal year in more concrete terms at the Annual General Meeting.

The successful business strategy DATAGROUP 2020 has been further developed in the course of the last fiscal year, also with a view to quantitative planning. DATAGROUP 2025 evolutionary updates the long-term development objectives until 2025. By then revenues are planned to be in the range of EUR 750m. Max H.-H. Schaber (CEO) concluded: “Long-term contracts with recurring income form the core of the DATAGROUP business model. Therefore, our business development is characterised by a high degree of plannability and stability against economic fluctuations. On this basis, we will continue on our profitable growth path in the future as well”.

The 2017/2018 annual financial accounts are available for download at www.datagroup.de/en/investor-relations.

Financial Calendar

The Management Board of DATAGROUP SE will explain the figures of FY 2017/2018 in a conference call taking place on January 24, 2019 at 3.00 am CET. All interested investors, analysts, and journalists are cordially invited to participate. The call will be held in German.

Please use the following dial-ins:
+49 89 244184437 from Germany
+33 4 82 98 60 14 from France
+44 1635 598060 from Great Britain

A replay will be available right after the conference call at www.datagroup.de/en/investor-relations.

About DATAGROUP

DATAGROUP is one of the leading German IT service companies. Over 2,000 employees at locations across Germany design, implement, and operate IT infrastructures and business applications such as SAP. With its CORBOX product, DATAGROUP is a full-service provider, supporting over 600k global IT workplaces for medium and large enterprises as well as public authorities. In other words: We manage IT. The company is growing organically and through acquisitions. The acquisition strategy is particularly noted for its optimal integration of new companies. DATAGROUP is actively participating in the IT service market’s consolidation process with its “buy and turn around” and its “buy and build” strategy.

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