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CANCOM: Revenue and EBITDA growth in Corona year 2020. Dividend increase and optimistic forecast for 2021 - Seite 2

Cloud Solutions is a growth driver for the entire Group

The Cloud Solutions segment, which comprises the managed services business and activities relating to the in-house IT management software AHP, was the growth driver for the CANCOM Group with a very strong fourth quarter and also with a view to the development over the year as a whole. In the 2020 financial year, the segment achieved an 18.5 percent increase in revenue to EUR 356.1 million (prior year: 300.6). Segment EBITDA rose by 13.7 percent to EUR 83.0 million (prior year: 73.0), which corresponds to an EBITDA margin of 23.3 percent (prior year: 24.3). Annual Recurring Revenue was 12.0 percent higher than the prior year at EUR 205.9 million (prior year: 183.9).

In the IT Solutions segment, which includes the system house business, CANCOM was able to increase annual revenue by 3.6 percent to EUR 1,293.2 million (prior year: 1,248.7). Segment EBITDA was slightly down on the prior year at EUR 60.5 million (prior year: 62.0). The EBITDA margin thus fell to 4.7 percent (prior year: 5.0).

The CANCOM Group's cash flow from operating activities amounted to EUR 68.2 million in the 2020 fiscal year (prior year: 129.8) and was largely influenced by pandemic-related increases in inventories and a high level of trade receivables. At EUR 338.4 million (prior year: 364.9), cash and cash equivalents as at 31 December 2020 were at a comparable level to the previous year and underline the solid financial resources with which the CANCOM Group can act in the Corona crisis.

"Many existing but also potential new customers are faced with the challenge of integrating solutions procured in the short term for immediate problem solving in the crisis into existing IT infrastructures in the long term. This has already boosted our service business in the fourth quarter and we expect positive impulses from this in 2021 as well," says Hotter. These business opportunities exist both in the area of one-off integration projects as well as in the conclusion of long-term managed services contracts, thus affecting both Group segments. "Against the background of the development achieved, the good liquidity situation and with a view to the opportunities in 2021, the Executive Board of CANCOM SE considers it appropriate to allow our shareholders to participate in our success by increasing the dividend to EUR 0.75," said Hotter.