2019 was a good year for Columbus with 4% organic growth and EBITDA growth of 39%. The positive development continued in the first two months of the year, after which COVID-19 changed the conditions for 2020. Columbus is fully focused on serving customers and adapting the business to the changing situation.
Ballerup, 24 March 2020: Columbus delivered a 2019-result with a growth in revenue of 4% (DKK 1,932m) and EBITDA of DKK 238m. (including IFRS 16 effect of DKK 41m). The revenue growth was primarily driven by a progress in the sale of Columbus Care (Application Management Services) and cloud services. At the same time, Columbus delivered progress within the company’s solution and services portfolio 9 Doors to Digital Leadership, while the iStone integration went according to plan with value creation and synergy across markets, customers and solutions.
The financial result for 2019 is presented at a time when the global business environment is under severe pressure as a result of the COVID-19 pandemic. Columbus has full attention on servicing customers while securing and adapting the business to the temporary situation.
CEO and President Thomas Honoré is pleased with the result for 2019, which continued in the first two months of the year, despite unsatisfactory results in the US business. At the same time, he is fully focused on getting Columbus safe through the worldwide health crisis:
“Columbus, like all companies, is affected by the COVID-19 pandemic. In a business like ours, which is digitally driven, we can deliver and support our customers 100% trough digital platforms and we are in close dialogue with our customers to ensure that they can continue their operations during this period”, says CEO Thomas Honoré.
Since the outbreak of the COVID-19, Columbus starts to see customers holding back new investments due to temporary production or sales decrease as a direct consequence of the pandemic.
“We expect a challenging first half of 2020, but we are fully focused on adapting our business and commercial activities to the changing situation while looking after our employees. Columbus has a strong financial position, but there is not doubt that our result for 2020 will be affected by the current situation,” says Thomas Honoré.
As the situation normalizes, Columbus expects continued growth within sale of digitalization solutions and cloud business applications, which came off to a good start in the first two months of the year.
Columbus expect that the conversion from on-premise solutions to cloud will be growing significantly over the next five years and Columbus is already well positioned with a well-developed global delivery setup specialized in upgrading customers to the cloud. In addition, Columbus will focus on helping customers with end-to-end digital solutions that help transform, maximize and future-proof the business digitally.
Given the rapid day-to-day developments in Columbus’ main markets, Columbus is currently unable to accurately assess the magnitude of this short-term impact, including the duration of the expected temporary market contraction. Columbus has therefore decided not to announce the expectations for 2020 and our long-term guidance until the company has a better insight into the impact on our business.
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