Interim Management Statement Q1 2018

Release no. 11/2018

Columbus delivers 75% growth in EBITDA*
In the first quarter of 2018 Columbus delivers revenue growth of 51% and increases EBITDA* by 75%. The growth in EBITDA is primarily driven by the iStone acquisition.

In accordance with the regulations for listed companies’ submission of interim statements, Columbus A/S hereby submits the interim management statement for the period 01.01.2018-31.03.2018 (3 months).

EBITDA growth driven by acquisitions

Revenue in Q1 2018 amounted to DKK 469m (2017: DKK 310m), corresponding to an increase of 51% compared to the same period last year.

The revenue growth is primarily driven by the acquisition of the Swedish company iStone, which was acquired on 2 January 2018, and secondarily by the acquisition of HiGH Software on 9 February 2018.

EBITDA* amounted to DKK 51m (2017: DKK 29m), corresponding to an increase of 75% compared to the same period last year.  

The increase in EBITDA* is driven by the previously mentioned acquisitions.

The result before tax increased by 92% to DKK 32m. Besides the increase in EBITDA* the result before tax is affected by a currency gain of DKK 11.5m arising from currency adjustment of the residual purchase price related to the iStone acquisition. Futher, the result before tax is negatively affected by extraordinary depreciation of Columbus Software of DKK 15m.

Currency rate effect

Revenue and EBITDA* are negatively affected by the decline in the USD rate, which affects the revenue by DKK -13.3m and EBITDA* by DKK -1.1m. The decline in GBP and RUB rates have less effect on the results. In total, the declining currency rates affect the revenue by DKK -17.7m and EBITDA* by DKK -1.3m.

Progress in the services business

In Q1, the service revenue increased by 64%, from DKK 225m to DKK 370m, and chargeable hours increased from 55% to 57% compared to the same period last year.

The increase in the service revenue is primarily driven by the iStone acquisition.

Recovery of Columbus US

During 2017, the US business adjusted cost levels to compensate for the decline in sales. The recovery plan is executed according to plan.

Progress in the sale of Columbus Software

The sale of Columbus Software has come off to a good start with a total revenue growth of 38%. The sale of software maintenance services increased by 39% as a consequence of a satisfactory renewal rate and an emerging positive effect of the cloud conversion. The sale of licenses increased by 9% due to heavy demand in Q1. The sale of own cloud software products showed good progress.

Columbus Care and cloud drive growth in recurring revenue

In Q1 2018 recurring revenue increased by 29% and constituted 21% of the total revenue. The progress is driven by a considerable increase in sale of Columbus Care of 52% as well as an increase in total cloud revenue of 234%.

Expectations to 2018

Columbus maintains the announced expectations to 2018:

• Revenue in the level of DKK 2bn
• EBITDA* in the level of DKK 200m
• Columbus Software revenue in the level of DKK 90m
• 10% dividend on nominal share capital

Latest developments

No events or transactions with a material effect on the company’s financial position have occurred since the balance sheet date.

”Columbus started the year with two significant acquisitions of iStone and HiGH Software and progress within a range of our strategic business areas such as cloud,  Columbus Care and Columbus Software. iStone and HiGH Software come with a range of exciting solutions and competencies which will strengthen our market position and we look forward to creating even great value for our customers and reaching our strategic business goals”, says CEO and President in Columbus, Thomas Honoré.

*EBITDA before share-based payment

Financial income and expenses

Financial income and expenses primarily concerns exchange rate adjustments in relation to group receivables and monetary items.

In order to support decisions about allocation of resources and assessment of performance of the segments, the Group’s internal reporting to the Board of Directors of the Parent Company is based on the following grouping of operating segments:

Attachment

• SE_11_2018_Interim_management_statement_for_Q1_2018