DGAP-News: DATAGROUP SE: Publication of H1 2018/2019 figures: DATAGROUP accelerates growth

Publication of H1 2018/2019 figures: DATAGROUP accelerates growth

REVENUE +7.2 %; EBITDA +10.5 %; EBIT + 18.1 %; EAT +24.7 %.
EBITDA MARGIN REACHES 12 %.
REVENUE AND EARNINGS OUTLOOK RAISED.

(PRIOR TO IFRS 15 AND 16).
 

Pliezhausen, May 21, 2019. DATAGROUP SE (WKN A0JC8S) today publishes figures for the first half of FY 2018/2019. Revenue and earnings growth accelerated again impressively underlining the effectiveness of the corporate strategy which has been pursued and consistently implemented for several years. It is focused on long-term contracts with recurring revenue and high added value. During the period under review, DATAGROUP acquired an above-average number of service contracts. Additionally, the acquisition of UBL UBL Informationssysteme GmbH (UBL) has extended the company's range of services by platforms for containerized software solutions.

In the period under review (01.10.2018 - 31.03.2019) revenue on a comparable basis (adjusted for the effects of the first-time adoption of IFRS 15 and 16) was up 7.2 % to EUR 143.1m (PY: EUR 133.5m). The proportion of service revenue improved to 83.2 % (81.7 %). Adjusted operating earnings before taxes, interest, depreciation and amortization (EBITDA) climbed disproportionately in relation to revenue by 10.5 % to EUR 17.2m (EUR 15.6m). The EBITDA margin increased from 11.6 % to 12.0 %. Earnings before interest and taxes (EBIT) also increased disproportionately to revenue (adjusted) by +18.1 % to EUR 10.2m (EUR 8.6m). The EBIT margin amounted to 7.1 % (6.5 %). EBIT improved by 26.7 % to EUR 9.2m (adjusted).

Earnings per share (EPS) rose by almost 25 % to 75 cents compared to 60 cents in the previous year.

As in the first quarter, the first-time adoption of IFRS 15 and 16 has led to changes in revenue and EBITDA^[1] - these effects are as follows:
 

Positive full-year outlook is adjusted upwards

The positive development in the first half of the year combined with the acquisition of UBL prompted the management to raise the annual outlook. DATAGROUP now expects revenue of more than EUR 300m and EBITDA of over EUR 38.5m without consideration of the effects due to the first-time adoption of IFRS 15 and 16. After application of IFRS 15 and 16 management board expects revenue of more than EUR 295m and EBITDA of more than EUR 45m.

Numerous large-scale orders lead to positive order situation

"It is not only clear from the figures of the first six months that DATAGROUP continues to be well on track", said CEO Max H.-H. Schaber. "We are very pleased with the development of orders, the effect of which will become fully visible in the following years." DATAGROUP has signed multi-year contracts with companies from different industries and which have volumes in the medium single- to double-digit million euros. Demand in the financial services sector has been particularly strong. Having won the tenders for the full-service outsourcing of IKB Deutsche Industriebank and for the operation of the IT infrastructure services of BayernInvest, a five-year contract was signed with Bankhaus Lampe in the period under review. This contract has a volume in the two-digit million euros as well. As a result, the order book amounts to over EUR 200m in the years to come in the financial services sector alone. Having won the public tender for the reallocation of service desk and onsite services of the ARD broadcasting stations was the most recent acquisition success outside the financial service provider sector. The framework contract agreed with the German regional public broadcasting agencies, Deutsche Welle and Deutschlandradio has a term of at least four years and a volume in the double-digit million euros

DATAGROUP acquires UBL Informationssysteme GmbH

DATAGROUP has also been sucessful concerning inorganic growth: With effect from April 1, the company acquired 100 % of the shares in UBL Informationssysteme GmbH (UBL), which is headquartered in Neu-Isenburg near Frankfurt/Main. Multi-cloud and managed service provider UBL develops and operates IT infrastructures and platforms for larger Mittelstand companies. With a focus on customized services from architecture to concept of operations in the cloud and specialization in IBM infrastructures, UBL is a perfect addition to DATAGROUP's range of services. "UBL's competence in container technology complements the range of our central supply units in Cloud Solutions and creates a new knowledge center", said DATAGROUP CPO Andreas Baresel. "Thanks to this acquisition we also generate significant added value for our existing customers."

New promissory note loan secures long-term financing

Following the completion of the first half of the year, the company took advantage of the continuing favorable interest rate level and continued to finance its business by means of promissory notes. By taking up a total of EUR 69m over seven years, DATAGROUP ensures a high level of planning security and financial stability at favorable conditions. The liquid funds have increased the financial scope for further organic and inorganic growth. The promissory notes were placed within the circles of our existing main banks which is evidence of the great confidence the company enjoys among its business partners of many years. As usual, the loan is expected to be repaid from the strong cash flow.
 

The semi-annual report featuring detailed key performance indicators of H1 2018/2019 is available for download under www.datagroup.de/investor-relations.
 

The Chief Executive Officer will explain the current figures of in a conference call taking place on May 22, 2019 at 4.00 pm CET. All interested investors, analysts, and journalists are cordially invited to participate. The call will be held in German.

Please use the following dial-ins:

+49 89 244184437 from Deutschland
+33 4 82 98 60 14 from France
+44 1635 598060 from the UK

Financial calendar

About DATAGROUP

DATAGROUP is one of the leading German IT service companies. Over 2,000 employees at locations across Germany design, implement, and operate IT infrastructures and business applications such as SAP. With its CORBOX product, DATAGROUP is a full-service provider, supporting over 600k global IT workplaces for medium and large enterprises as well as public authorities. The company is growing organically and through acquisitions. The acquisition strategy is particularly noted for its optimal integration of new companies. DATAGROUP is actively participating in the IT service market's consolidation process with its "buy and turn around" and its "buy and build" strategy.

CONTACT FOR FURTHER INFORMATION

DATAGROUP SE
Claudia Erning
Wilhelm-Schickard-Str. 7
72124 Pliezhausen

T +49 7127 970-015
F +49 7127 970-033
claudia.erning@datagroup.de

^[1] The first-time adoption of IFRS 15 &16 has an impact on the date as to when the revenue from a project business which has a transition and a subsequent operating phase is recognized. Revenue that was shown in the transition phase before is now deferred and spread evenly across the operating phase. As a result, no revenue is shown for large-scale projects which are in the transition phase, e.g. the NRW.Bank project, even though a considerable amount of services is provided. In a comparison to the IFRS standard applied so far, this leads to a negative special effect in revenue in the amount of EUR 4.4m and a positive effect on EBITDA of EUR 3.2m.

^[2] Without own shares