DATAGROUP Continues Profitable Growth

Q3 2016/2017 figures (01.04.-30.06.2017) Revenue 25% up yoy, EBITDA +103% EBITDA margin clearly double-digit at 13.0% Earnings per share jump to 45 cents

Pliezhausen, August 21, 2017. DATAGROUP SE (WKN A0JC8S) continues on its strong and profitable growth path. The Cloud and outsourcing service provider raised revenue by 25% yoy in the third quarter of FY 2016/2017. EBITDA even has more than doubled. With last week’s takeover of ikb Data, management wants to further accelerate growth.

In the third quarter of FY 2016/2017 (01.04. – 30.06.2017) DATAGROUP generated revenue of EUR 55.1m (previous year EUR 44.0m). DATAGROUP continues to be very successful in promoting growth in the core business with high-quality Cloud and outsourcing services in particular. Service revenue grew disproportionately by 36% to EUR 44.8m (previous year EUR 33.0m), The service share in revenue climbed to over 81% (previous year 75%).

The very strong expansion of the high-margin service business was a major contributor to the disproportionate increase in quarterly earnings. Earnings before interest, taxes, depreciation and amortisation (EBITDA) has doubled yoy to EUR 7.2m (previous year EUR 3.5m, +103%), corresponding to an EBITDA margin of 13.0%. Further improvement in sales quality was the strongest driver of the significant margin expansion. DATAGROUP raised its EBITDA margin in the operating business, i.e. without acquisition-related one-time effects, to 11.1% (previous year 8.0%). Additionally, positive one-time effects from the acquisition of IT service provider HanseCom in May 2017 contributed to quarterly earnings. Earnings before interest and taxes (EBIT) of EUR 5.2m exceeded the previous year’s figures of EUR 1.9m by as much as 170%. Below the line, DATAGROUP achieved a net income of EUR 3.5m (previous year EUR -0.5m due to extraordinary tax and interest expenses). Earnings per share amounted to 45 cents (previous year -7 cents) despite the higher number of shares caused by a capital increase.

DATAGROUP thus continues on its strong and profitable growth path. In total, revenue grew by 29% to EUR 163.1m (previous year EUR 126.7m) in the first three quarters of FY 2016/2017 (01.10.2016 – 30.06.2017). EBITDA of EUR 18.7m (previous year EUR 9.6m, +96%) also was well above the level a year earlier. Net income increased tenfold from EUR 0.8m to EUR 8.0m.

“The outstanding earnings development shows the strength of our business model”, commented DATAGROUP CEO Max H.-H. Schaber. “By consistently expanding high-margin Cloud and outsourcing services, we are sustainably enhancing DATAGROUP’s profitability and are gradually lifting the operating EBITDA margin. What makes it special is that the average contract term for these kinds of services is around four years. Consequently, we consistently raise the share of recurring income in revenue, whilst profitability and economic stability are increasing. This process is further accelerated by strategic acquisitions.”

DATAGROUP has already acquired two successful Cloud and outsourcing service providers in the current fiscal year. Following the acquisition of Hamburg-based IT provider HanseCom in May, the company last week announced the purchase of ikb Data GmbH. ikb Data is a specialist for IT outsourcing and data security and has a long-standing expertise in the challenging financial services industry. Both companies are very profitable and strengthen the competences and capacities in DATAGROUP’s core businesses.

“With the 20th takeover since 2006, we have taken another important step towards becoming the leading Cloud provider and IT outsourcer for German Mittelstand companies by 2020/2021″, said DATAGROUP COO Dirk Peters. „ikb Data and its proven expertise in handling particularly sensitive data is an excellent fit for us. Operating under the umbrella of DATAGROUP will create new growth opportunities for the company both in the banking sector and in related industries. We look forward to working with our new colleagues.”


Claudia Erning
Investor Relations
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