EQS-News

adesso SE increases sales revenues in Q1 2024 by 15 % to EUR 317.1 million / EBITDA at previous year’s level of EUR 17.8 million due to calendar effect / Guidance confirmed - Seite 2

Despite the rather subdued general development of the economy and competition, adesso’s portfolio for the further digitalisation of companies is generally meeting with good demand. Dynamic sales revenue growth in the double-digit percentage range was once again achieved in most of the core sectors served by adesso. The exception to this is insurance, which remained at the previous year’s level, partly due to the previous year’s quarter, which benefited from the acquisition of licences. The “Manufacturing Industry” segment also remained roughly at the previous year’s sales revenues level following strong growth in previous periods. The federal government’s supplementary budget, which was temporarily halted by the Federal Constitutional Court in November 2023, led to the delay of already budgeted projects in the “Public Administration” sector in Germany in the first quarter of 2024. adesso’s largest sector, accounting for 16 % of total sales revenues, nevertheless recorded 7 % growth and generated over EUR 50 million in the first quarter alone. Indications at the start of the second quarter are that the sector remains keen to invest. The “Healthcare” and “Utilities” sectors recorded particularly strong sales growth of 36 % and 65 % respectively. There are still no signs of a structural deterioration in the order situation for adesso.

Sales revenue growth in the German market amounted to 17 %. Outside Germany, revenue increased by 6 %. Revenue in the Netherlands and Italy grew disproportionately by 20 % and 21 % respectively.

As expected and mentioned previously, the development of the operating result (EBITDA) was still subdued in the first quarter due to the calendar effect reaching EUR 17.8 million (previous year: 17.9 million) and was significantly influenced by the disproportionately high increase in absolute personnel costs (+18 % to EUR 227.0 million) compared to sales revenues. However, personnel costs per employee rose only moderately by 1 %. Compared to the first quarter of the previous year, other operating expenses also increased significantly by 24 % to EUR 37.1 million. The increase is due to a large number of cost items that are directly related to further growth. Due to the general price trend, these generally increased disproportionately to employee growth. The still modest development of the operating result led to consolidated earnings of EUR -3.2 million (previous year: EUR 2.0 million) with a 22 % increase in depreciation and amortisation to EUR 15.5 million (previous year: EUR 12.7 million), primarily in connection with the expansion of the company headquarters in Dortmund, a noticeable increase in interest expenses (EUR 2.7 million; previous year: EUR 1.7 million) and higher taxes of EUR 2.7 million (previous year: EUR 1.7 million). This results in earnings per share of EUR -0.49 (previous year: EUR 0.28). The earnings trend, which is heavily influenced by the calendar effect, is likely to improve again significantly against the backdrop of the significantly higher number of available working days, especially in the second half of 2024, as capacity utilisation picks up. A package of measures initiated at the beginning of 2024 to increase profitability will increase the achievable margin in the following quarters and subsequently also the contribution to earnings, assuming appropriate capacity utilisation. In view of the planning and other current indicators, the Executive Board is positive about the outlook for the rest of the financial year. On this basis, the Executive Board has reaffirmed its original full-year guidance for 2024 of over EUR 1.25 billion in sales revenues with EBITDA of EUR 110 to 130 million.