Copenhagen, 16 marts 2017: With a revenue increase of 6% (DKK 1,193m), and a growth in earnings (EBITDA*) of 37% (DKK 144m) in 2016, Columbus continues to announce solid progress in the Group.
”We are satisfied with the results that we achieved in 2016, and first of all, these results show that our strategy is well received by our customers. We help our customers digitally transforming their businesses and take care of customers’ needs from initiation of the projects to life-time support”, says Thomas Honoré, CEO & President in Columbus.
The growth in earnings was primarily driven by a solid growth in the services business as well as acquisitions made in 2015 and 2016. The increase in EBITDA was primarily driven by the improvement in profitability in the services business, and secondly by acquisitions. Columbus’ services business delivered 11% revenue growth, while increasing Service EBITDA from DKK 40m to DKK 91m, which is an increase of 131%. Columbus’ Norwegian and US subsidiaries are providing the largest increase.
“I am particularly pleased with the progress in our services business. We have been successful in optimizing and streamlining operations, while selling more projects and ColumbusCare support agreements”, says Thomas Honoré.
In February, Columbus acquired the Danish cloud and hosting company, SystemHosting. In July Columbus acquired the US ERP consultancy, CSG. And in December Columbus acquired the UK IT services and cloud company, Cambridge Online Systems.
Cloud conversion provides new market opportunities
The conversion to cloud started a couple of years ago, but accelerated in 2016. This creates significant business opportunities for Columbus to offer complete and compelling industry-based business applications running in the cloud, however, short-term the cloud conversion will cause a decline in revenue and earnings.
In 2016, the sale of Columbus Software declined by 6% to DKK 91m. The main reason for the decline is that the expected cloud conversion is taking place faster than anticipated, together with a very strong software sale in 2015.
In 2016, Columbus converted the Columbus software portfolio into cloud, which means that customers can buy total cloud solutions based on Columbus Software products in the cloud. At the same time Columbus launched the company’s first IoT (Internet of Things) solution innius®, a cloud-based business application, which gives manufacturing companies real-time intelligence about machine performance.
Columbus increases long-term expectations to EBITDA* margin until 2019
The long-term expectations until 2019 to average revenue growth is maintained at 10% per year, while the long-term expectations to EBITDA margin is increased from 10% to 11%.
In 2017, Columbus expects revenue in the level of DKK 1.35bn, and EBITDA* in the level of DKK 150m.
“2017 will be another eventful year for Columbus. We have customer satisfaction, cloud-based solutions and ColumbusCare support as absolute focus areas. Today, Columbus has a strong market position, and I am convinced that we will strengthen the position further in 2017”, says Thomas Honoré.
Columbus2020 – towards growth
In March, Columbus announced the five-year strategy Columbus2020 with the clear purpose of being the preferred business partner, that helps our customers increasing the value of their ERP investment and leads them in the digital transformation of their business. Columbus2020 focuses on four strategic elements; Customer Success, Digital Leadership, Process Excellence and Our People.
*EBITDA before shared-based payment