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DATAGROUP SE: DATAGROUP Presents Figures for the Third Quarter

DGAP-News: DATAGROUP SE / Key word(s): 9 Month figures DATAGROUP SE: DATAGROUP Presents Figures for the Third Quarter 01.09.2020 / 07:29 The issuer is solely responsible for the content of this announcement. DATAGROUP Presents Figures for the Third Quarter

Pliezhausen, Tuesday, September 1, 2020. DATAGROUP shows continued strong growth and increases revenue significantly by 23.5% to EUR 264.2m in the first nine months In the third quarter, delayed start-ups in the banking sector and significantly higher expenses for the boarding of new banking customers clearly weighed down on earnings. The negative impacts of the corona pandemic only affect a small part of DATAGROUP's business. Despite these effects, DATAGROUP sees itself excellently positioned for the future to continue to benefit from the ongoing digitalization trend going forward.
 

KEY FIGURES

Revenue increased significantly again in the third quarter (01.10.2019 - 30.06.2020). When compared to the 9-month figures of FY 2018/2019, DATAGROUP recorded revenue growth of 23.5% from EUR 213.9m to EUR 264.2m. This increase was mainly driven by the first-time consolidation of Portavis GmbH in March 2020 and the consolidation of today's DATAGROUP Ulm GmbH (formerly IT-Informatik, consolidated entity since August 2019). The proportion of service revenue continued to grow to 84.9% (PY 82.5%). Operating earnings before taxes, interest, depreciation and amortization (EBITDA) declined by 21.9% to EUR 25.5m (PY EUR 32.7m) due to non-recurring special effects. Earnings before interest and taxes (EBIT) decreased by 77.4% to EUR 3.6m (PY EUR 16.1m). The EBITDA margin was down 15.2% to 9.6%, the EBIT margin declined to 1.4% (PY 7.5%). EBT dropped by 88.1 % to EUR 1.7m (PY EUR 14.3m). Earnings per share (EPS) came in at EUR 0.24 compared to EUR 1.15 in the previous year (-79.1%).

The acquisition of Portavis has also increased the balance sheet total from EUR 320.1m to EUR 386.1m. Liquid funds rose from EUR 47.5m to EUR 66.1m. The equity ratio declined from 23.1% in the previous year to 18.2% on June 30, 2020.
 

NON-RECURRING SPECIAL EFFECTS FROM TRANSITIONS IN THE FINANCIAL SERVICES SECTOR AND CORONA IMPACTS

The weaker development of EBIT and EBITDA in comparison to the period a year earlier is explained by various aspects. The primary reason for the decline in earnings were delays and increased costs related to the start-ups of new customers (transitions) in the financial services sector (DATAGROUP Financial IT Services GmbH). The management board has taken immediate measures to improve the situation. Based on an in-depth analysis performed by a task force set up for this purpose an extensive package of staffing and organizational measures is being implemented and will already demonstrate its effectiveness in FY 2020/2021.