DGAP-News

adesso AG continues growth path in the first quarter 2017 increasing sales and operating earnings

DGAP-News: adesso AG / Key word(s): Quarterly / Interim Statement/Quarter Results adesso AG continues growth path in the first quarter 2017 increasing sales and operating earnings 26.05.2017 / 16:46 The issuer is solely responsible for the content of this announcement. adesso AG continues growth path in the first quarter 2017 increasing sales and operating earnings

- Group sales increased by 35 % to EUR 75.7 million (25 % organic)

- EBITDA: + 37 % to EUR 5.2 million

- Sales and EBITDA forecast for the year overall confirmed

adesso AG continued following the growth path in the first quarter 2017 by increasing its sales revenues compared to the prior quarter and the previous year. Growth drivers are furthermore the core business with consulting and custom software development for customers in Germany and Switzerland, the expansion of own insurance software products as well as the company acquisitions. Operating earnings increased due to sales growth and high-margin company acquisitions.

Business development in the first quarter

In the first quarter, adesso increased its sales by 35 % (thereof 25 % organic) compared to the previous year for a total of EUR 75.7 million. Continued employee growth through new hires over the last 12 months, a positive market condition and numerous successful sales initiatives led to rising sales revenues in the IT Services segment in Germany and Switzerland. Business with E-Commerce customers expanded notably. Further growth was generated in the development and project business for the insurance software in|sure. Licensing and maintenance contracts volume of the content management system FirstSpirit grew compared to the previous year.

The number of employees in the adesso Group increased in the first quarter especially due to new hires compared to 31 December 2016 by 5 % or 111 to 2,285 (Q1/2016: 1,757), so that the fast pace of organic growth continued in the first quarter.

Results of operations in the first quarter

Based on a countinued good capacity utilisation but higher rate of contracted external services operating earnings EBITDA grew by 37 % to EUR 5.2 million. Thereof EUR 1.1 million are to be allotted to smarthouse and UnitCon acquisitions. A stronger organic growth was slowed by higher investment in the in|sure product family.