With an EBITDA growth of 7%, Columbus delivers a satisfactory first half of 2019, and maintains full year expectations.
Ballerup, 22 August 2019 —Today, Columbus released the financial results for the first half of 2019. The company delivered a revenue of DKK 977m which is an organic growth of 2%. EBITDA increased to DKK 102m which is an organic growth of 7%.
Good progress in the business despite a slow Q2
In general, Columbus saw good progress in the business, where especially the M3 and Commerce businesses showed strong progress. Sale of Columbus Care continued to show good progress with 16% growth in the first half of the year as well as sale of cloud services growing by 47%.
Columbus started the year with an organic revenue growth of 7% in Q1, however Q2 faced slow growth causing reduced growth in the first half of the year. The slowdown in Q2 can be attributed to a decline in Columbus software sales, new management turning around the US market, a challenging customer project in Norway and global adjustments in the wake of Brexit. Despite these challenges, Columbus delivers the expected progress.
“I am satisfied with the result for the first half of the year, where we delivered 7% EBITDA growth despite a slow Q2. In general, we see good progress in our business with many new business initiatives and a successful integration process”, says CEO & President in Columbus, Thomas Honoré.
Integration of iStone on track
The integration of iStone, the Stronger Together program, is being executed according to plan and the company experienced a range of synergies across the business such as a Nordic Finance Team and a merged organization in Norway. The Swedish Commerce business is expanding to UK and Denmark and the Global Delivery Center in India has expanded with M3, Dynamics and AMS resources. Today, the former iStone operates under the Columbus name with one common website and a strengthened brand.
Growth in new business areas
First half of 2019 was characterized by increased investments in building new offerings within the framework of 9 Doors to Digital Leadership®. In the first half of the year, Columbus launched a range of new offerings which are seeing good traction in the market with Enterprise customers for large deals. Sales from new business units/teams/departments such as Analytics & Business Insight, Customer Experience and Application Management (Columbus Care) continued to deliver growth.
The 9 Doors to Digital Leadership® means that Columbus can deliver “end-to-end” digital solutions that help the customers maximize, transform and futureproof their business digitally”.
Maintains expectations to 2019
Columbus was able to meet the projected revenue expectations for H1, 2019 at DKK 2bn and 240m EBITDA.
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