Business
CANCOM records increase in revenue and profit in the second quarter despite customer restraint
CANCOM reports significant increases in revenue and profit in the second quarter but falls short of analysts' expectations.
The IT service provider CANCOM achieved a significant increase in revenue and profit in the second quarter of the year, despite feeling the caution of its customers, particularly in the small and medium-sized segment. These positive figures are mainly due to an acquisition last year, but the analysts' expectations were still missed, which put pressure on the stock price.
CEO Rüdiger Rath explained that the operating business in the second quarter was characterized by persistent reluctance to buy in both the private and public sectors. Nevertheless, the CANCOM Group experienced significant growth through the acquisition of the KBC Group, an ICT solutions and service provider, which is now operating under the name CANCOM Austria Group.
The CANCOM share reacted negatively to the published quarterly figures and temporarily fell by 5.27 percent to 28.76 euros via XETRA. Since the beginning of the year, the company has lost about three percent of its market value, and compared to the previous year, the decline amounts to about ten percent. Analyst Martin Comtesse from Jefferies spoke of a difficult first half of the year for CANCOM, a company listed on the SDAX.
In addition to CANCOM, other IT service providers like Bechtle and GFT Technologies are currently facing challenges on the stock market. Bechtle has lost 15 percent of its market value since the beginning of the year, while GFT Technologies has lost even a third of its value.
During the period from April to June, CANCOM achieved an EBITDA of 25.1 million euros, representing an increase of 17.4 million euros compared to the same period last year. However, excluding acquisitions and currency effects, the operating result would have increased only slightly. The net profit amounted to 7.1 million euros, more than doubling compared to the previous year's quarter.
CANCOM's revenue increased by one-fifth to €394.7 million in the second quarter, but fell short of analysts' expectations, which were just under €417 million.
Despite these challenges, the CANCOM Executive Board confirmed the annual forecast. The company expects revenue between 1.75 and 2.0 billion euros and EBITDA between 130 and 155 million euros for the fiscal year.
