Columbus Q1 2023: Higher efficiency boosts operating profit by 33%

“Our unwavering focus on improving efficiency, improved project quality and cross sales is now reflected in the significantly improved EBITDA margin of 10%. We delivered a solid result in Q1 2023, and we have a positive view of the development with a strong pipeline and order backlog”. Says CEO & President, Søren Krogh Knudsen  

Strengthened business foundation

In recent years, Columbus has invested a lot of resources in streamlining the organization which has ensured a higher project quality and optimization of the delivery model. Quarter after quarter, we have delivered organic revenue growth and in Q1 2023, we have also lifted earnings significantly.

With the strengthened business foundation, we are now ready to grow through acquisitions. Therefore, it was also a great pleasure that we could announce the acquisition of the Danish IT security company, ICY Security, in mid-April 2023. Advisory within IT security has long been sought after by our customers, and with the acquisition we have gained an expanded advisory opportunity in a strategic very important area.  

Positive development in earnings in Q1 2023

Revenue increased by 7% in Q1 2023 to DKK 391m. The development covers a growth of 12% in local currencies, where especially the decline in Swedish and Norwegian currency has negatively affected revenue. However, the underlying activity has more than lived up to our expectations with many new customers and a positive effect of the implemented price increases.

In Q1 2023, operating profit (EBITDA) increased to DKK 39m, corresponding to an EBITDA margin of 10%. Thereby, we reached an important milestone, and we continue to see good opportunities to improve earnings through further efficiency improvements. In Q1 2023, efficiency was lifted by 5 percentage points to 67% up from 62% in Q1 2022.

Progress across the business

Columbus’ service revenue continues to drive growth with a revenue share of 96% in Q1 2023, and the progress was delivered across the business. At country level, Denmark was leading the progress with a revenue increase of 23% to DKK 80m, but the rest of the Nordic region as well as the UK and US also showed progress. The strategic business areas: Digital Commerce, Data & Analytics and Customer Experience & Engagement all delivered growth rates above 25%.

See the revenue split on page 5 in the attached quarterly report for Q1 2023

Outlook for 2023 maintained

Based on the development in Q1 2023 and our strong pipeline and order backlog, we maintain our expectations for 2023 with:

• Revenue of DKK 1,550m – 1,600m, corresponding to an organic growth of 8-12% (12-15% in local currencies)
• EBITDA of DKK 119m – 139m, corresponding to an EBITDA margin of 7.4% - 9.0%

Key figures for Q1 2023

DKK m	Q1 2023	Q1 2022	Development
Revenue	390.5	363.8	7%
EBITDA	39.2	29.5	33%
EBITDA-margin	10.0%	8.1%	+2 pct point
Efficiency	67%	62%	+5 pct point
Avg. Number of full-time employees	1,530	1,507	2%