Columbus starts 2017 with a solid first quarter. With a revenue growth of 13% and growth in earnings of 14%, the global IT Services company continues its positive development for the fifth consecutive year.
Copenhagen, Denmark - 25 April 2017: In the first quarter of 2017, Columbus delivers growth in both revenue and earnings (EBITDA*). Revenue totaled DKK 310m (2016: DKK 275m), while EBITDA was realized by DKK 29m (2016: DKK 26m).
”The first quarter shows great progress in Columbus. We are at full speed driving digital transformation projects, and we generally see a great appetite among our customers to digitize and optimize their business”, says CEO in Columbus, Thomas Honoré.
The revenue growth is primarily driven by a solid growth in the services business with a revenue growth of 18%. The increase in EBITDA is also driven by a significant increase in earnings in the services business of 33%. A major parameter for the improvement in the services business is higher realized hourly rates, acquisitions and increased utilization of Columbus’ Global Delivery Center.
”We constantly work with increasing the quality in the delivery to our customers while improving revenue and earnings. An important parameter for the progress in the first quarter is our subsidiaries’ increased utilization of Columbus’ Global Delivery Center, which provides services of high quality to our customers 24/7”, says Thomas Honoré.
ColumbusCare revenue increases by 62%
A major factor in Columbus’ strategy is recurring revenue, as it creates stability and predictability in the business. In the first quarter recurring revenue grew by 17%, now constituting 24.4% of total revenue. Including in this is the sale of ColumbusCare contracts, which delivered a significant increase of 62%.
Columbus maintains expectations for 2017
The expectations for 2017 are maintained at the level of DKK 1.35 billion and EBITDA in the level of DKK 150m. Columbus expects to pay a dividend of 10% of the nominal share capital.
*EBITDA before share-based payment.