Columbus’ financial results for 2017 show a successful execution of Columbus2020 with 2% revenue growth and 18% growth in result after tax.
Copenhagen, 15 March 2018: With a revenue growth of 2% (DKK 1.2bn), an EBITDA* growth of 3% (DKK 149m) and an increase in result after tax of 18% (DKK 96m) Columbus delivered a satisfactory execution of the Columbus2020 strategy in 2017 which was about customer satisfaction, cloud conversion and innovation.
”We are satisfied with the result for 2017 where we grew our business while developing and selling a range of new cloud-based solutions helping our customers in the digital transformation. The result has shown that Columbus can deliver on our vision about growth and innovation in a rapidly changing market”, says CEO & President in Columbus, Thomas Honoré.
The revenue growth was primarily driven by the emerging cloud business, growth in the services business and acquisitions made in 2016 and 2017. The increase in EBITDA was primarily driven by improvement in profitability in the services business, which increased by 19%.
”I am especially satisfied with the development in the sale of Columbus Care services which grew by 43%. As customers’ applications run in the cloud secure operation becomes an even more important competitive advantage for us - and that is exactly what Columbus Care ensures. Combined with our industry competence and cloud business applications we can offer our customers a very strong solution portfolio”, says Thomas Honoré.
Successful execution of Columbus2020
In 2017, Columbus continued the execution of Columbus2020 as planned. In 2017, Columbus had special focus on improving customer satisfaction and customer loyalty, and during the year the number of loyal customers has increased considerably. During 2017, Columbus launched a range of new services within Application Management and Infrastructure Management which means that now Columbus can support the customer’s total application and it-infrastructure. With the conversion of Columbus’ software portfolio to cloud-based solutions and development of new cloud services, Columbus is among the market leaders in implementing and supporting cloud-based business applications.
Columbus’ acquisition of iStone increases revenue by 50%
Columbus entered 2018 by completing the acquisition of the Nordic IT services company iStone thus in one stroke increasing revenue by 50%. With the acquisition of iStone, Columbus enters the Swedish market and at the same time becomes market leading within business applications and IT services to key industries in the Nordic region. iStone adds mores that 600 highly skilled employees in offices across 12 countries to Columbus, and Columbus hereby expands its global foot print.
Columbus adjusts the long-term expectations With the acquisition of iStone and HiGH Software (2 January 2018) Columbus enters 2018 with a range of new opportunities to grow the business, while taking a large step in reaching the financial objectives for 2020. The acquisition of iStone means that Columbus will focus on growing the organic business and expects to deliver a compounded organic revenue growth of 3-5% af year. Furthermore, Columbus expects to deliver an EBITDA margin of 11% towards 2020. In 2018, Columbus expects a revenue in the level of DKK 2bn and EBITDA* in the level of DKK 200m.
“2018 will be an exciting year for Columbus where a successful integration of iStone is an important priority. Columbus and iStone are a perfect match both business wise and culturally, and together we will create even more value for our customers. At the same time, we will continue developing our business with new innovative solutions and services that help our customers in the digital transformation,” says Thomas Honoré.
Columbus2020 – aiming for growth
In March 2016, Columbus announced the five-year strategy Columbus2020 with the clear goal of being the preferred business partner helping our customers increasing the value of their business application investment and leading them in the digital transformation of their business. Columbus2020 focuses on four strategic elements; Customer Success, Digital Leadership, Process Excellence and Our People.
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*EBITDA before share based payment