Interim financial statements first half 2017: Columbus maintains momentum
24 August, 2017
The global IT services company maintains momentum with 8% revenue growth in the first 6 months of the year. Growth in the services business and cloud drive the results.
Copenhagen, 24 August 2017: Columbus finished the first half of the year with a revenue of DKK 642m, corresponding to a growth of 8%. Earnings (EBITDA) amounted to DKK 71.2m, a growth of 7%.
”We are satisfied with the results. We follow our plan and deliver growth both in revenue and EBITDA. Columbus’ goal is to help our customers in the digital transformation of their business, and I am proud that we have obtained a leading market position within cloud and digital transformation projects”, says CEO & President in Columbus, Thomas Honoré.
Cloud projects deliver growth in the services business In the first half of the year, Columbus’ services business grew by 10%, and is thus the main reason for the growth in revenue. At the same time service EBITDA grew by 14%, which is due to improved operation in the services business.
”We generally see a great demand from our customers for digitalizing and optimizing their business. In the first half of the year, we saw that cloud really took off, and today we deliver the majority of new ERP projects in the cloud”, says Thomas Honoré.
ColumbusCare grows by 67% An important parameter in Columbus’ strategy is recurring revenue, as is creates stability and predictability in the business. In the first half of the year recurring revenue increased by 16%, and now constitutes 27% of the total revenue. Sale of ColumbusCare contracts is included with a significant growth of 67%, while cloud revenue grew by 120%.
“We have developed ColumbusCare from being pure support of the customer’s ERP into pro-active application management services, where we take the full responsibility for managing the customer’s applications in the entire lifecycle. We experience a greater demand from customers to be secured when their applications run in the cloud, which means that ColumbusCare has become an important competitive parameter for us”, says Thomas Honoré.
Columbus maintains expectations for 2017 The expectations to 2017 are maintained with revenue in the level of DKK 1.35bn and EBITDA in the level of DKK 150m. Columbus expects to pay a dividend of 10% on nominal share capital.