The global IT services company delivered revenue growth of 6% in the first nine months of the year and growth in EBITDA* of 11%. Growth in cloud and business applications services drives progress.
Copenhagen, 2 November 2017: Columbus completed the first nine months of the year with a revenue of DKK 907m, corresponding to an increase of 6%. EBITDA* amounted to DKK 97.3m, an increase of 11%.
”We are satisfied with the result where we deliver growth in revenue and earnings. It is especially our product sales and our ColumbusCare and cloud business that show progress and this is because we, together with our customers, are busy with a range of large digitization projects,” says CEO and President in Columbus, Thomas Honoré.
Cloud projects drive growth in the services business
In the first nine months of the year Columbus’ services business grew by 7%, while product sales grew by 5%. Sale of ERP cloud products and cloud projects are the primary reasons for the revenue increase. At the same time service EBITDA grew by 7%, due to the general high activity level in the services business, however service EBITDA is negatively impacted by temporary challenges in Columbus’ US SMB business.
“We generally see a high demand from our customers after digitizing and optimizing their businesses. Cloud has accelerated, and today we deliver the vast majority of new ERP projects in the cloud,” says Thomas Honoré.
ColumbusCare grows by 62%
A major parameter in Columbus’ strategy is recurring revenue, as it creates stability and predictability in the business. In the first three quarters of the year recurring revenue increased by 18% constituting 27.2% of total revenue. This includes a significant increase of 62% in the sale of ColumbusCare contracts while cloud revenue grew by 223%.
”As the customers’ applications run in the cloud, customers want a professional partner who can take the responsibility for managing applications during the whole life cycle. This is why ColumbusCare has become an important competitive parameter for us, and combined with our industry expertise and cloud business applications, we have a strong market position, “ says Thomas Honoré.
Overall expectations for 2017 maintained
The expectations for revenue and EBITDA* for 2017 are maintained in the level of DKK 1.35bn and DKK 150m. Columbus Software revenue is maintained in the level of DKK 80m. Service EBITDA is adjusted to the level DKK 120m. The reason for the adjustment is temporary challenges in Columbus’ US business which overall means that service EBITDA was lower than expected in Q3 YTD. Columbus expects a higher product sales which compensates for a reduced service EBITDA, which is why the expectations for EBITDA* is maintained.
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*EBITDA before share based payment