Columbus delivers 23% EBITDA growth in Q2
The financial statement for the first half of the year showed revenue on par with last year with a decrease of 1% (DKK 969m) and EBITDA growth of 2% (DKK 104m). Columbus is satisfied with the result, which was delivered despite the COVID-19 pandemic. In Q2 isolated, revenue decreased by 7% which was compensated by cost savings resulting in an EBITDA growth of 23%.
“I am proud that despite operating in uncertain times, we managed to deliver a Q2 with 23% EBITDA growth. I am impressed by the fighting spirit and readiness for change we have seen at our customers and internally. As a global digitalization company, we are ready to seize the digital market opportunities ahead of us”, says CEO & President, Thomas Honoré.
Columbus delivered progress in key areas such as Dynamics Sweden, Columbus Care (Application Management Services) and Columbus Cloud services. At the same time, Columbus managed to adapt the business to service customers 100% remotely.
Since the outbreak of the COVID-19, Columbus has experienced customers holding back new investments due to temporary production or sales decrease as a direct consequence of the pandemic. On the other hand, there has also been an increase in the demand for cloud, e-commerce, remote working and security solutions.
“We are convinced that more companies will see the benefits of increased digitalization in more areas, such as increased productivity, work-life balance, lower costs and less carbon footprint”, says Thomas Honoré.
Columbus has adapted the capacity across business segments to meet the temporary decline in demand. In addition, Columbus is monitoring resource allocation and increasing global sourcing. Columbus has also used various COVID-19 aid packages around the world and the Executive Board and the Board of Directors have reduced their salary by 30% for the remaining of 2020.
Financial highlights for Q2 2020:
- Revenue declined by 7%, amounting to DKK 459m as a consequence of COVID-19
- EBITDA improved by 23% to DKK 50m due to adjusted cost and capacity
- Columbus Software same level as last year
- Columbus Cloud services grew by 48% due to the cloud conversion
- Columbus Care grew by 18%, stating the need for business stability
- Recurring Revenue improved by 2% constituting 27% of revenue
Outlook for 2020
Based on the financial performance in H1, current order book and pipeline forecast, the guidance for full-year 2020 is as follows:
- Revenue expected to be in the range of DKK 1.750m and DKK 1.850m.
- EBITDA expected to be in the range of DKK 175m and DKK 185m.
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Contacts
Communications Director
Tine Rasmussen
tra@columbusglobal.com
+45 29 69 06 77
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About Columbus Global
Columbus is a global IT services and consulting company specialized in digital transformation. Our more than 1,500 digital explorers collaborate with our customers in the manufacturing, retail & distribution, and food & process industries. We advise, implement and manage business critical solutions within Strategy & Change, Customer Experience, Digital Commerce, Data & Analytics, Application Management and Cloud ERP. Headquartered in Denmark, we have offices and partners worldwide - delivering locally on a global scale
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Latest releases from Columbus Global
Columbus surpasses growth expectations13.3.2024 09:12:57 CET | Pressemeddelelse
Columbus surpassed its organic growth expectations in 2023, delivering growth of 11%, and 15% adjusted for currency and acquisition. The growth is expected to continue. The Company has set new goals for the future, aiming to continuously grow the top line by 10% annually and improve profitability to an EBITDA margin of 15% by the end of 2026.
New analysis of Columbus’ financial results for Q3 2023 and new strategy; New Heights4.12.2023 14:22:29 CET | Nyhed
The stock analysis firm, Aktieinfo, has just published an analysis of Columbus’ results for Q3 2023 and the newly published strategy - New Heights. The analysis concludes, among other things, that: "After ten consecutive quarters of growth and maintaining guidance for 2023 with organic growth expected to be between 8-12% and an EBITDA margin of 7.4-9.0%, Columbus concludes the strategic plan Focus23. All goals have been achieved. Now, new ambitious yet achievable goals are set for the period 2024-26, anticipating an annual average organic growth of 10% and a significant improvement in the EBITDA margin to 15% by 2026. Columbus is thus taking a step towards 'New Heights' for revenue, earnings, and stock prices." The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/7dc8b8dd-b686-4a70-8dc9-5b93f513aaa5
Columbus makes offer to acquire UK-based e-commerce consultancy30.11.2023 09:58:12 CET | Pressemeddelelse
Columbus A/S has submitted a conditional offer to acquire Endless Gain Ltd, a leading conversion rate optimization consultancy (CRO) focused on enhancing the digital customer experience for the UK retail industry
Strong Q3 Interim Report, new ambitious growth targets for 2024-2026 and new focus on Life Science15.11.2023 09:18:19 CET | Pressemeddelelse
In the third quarter of 2023, Columbus once again delivered impressive organic top-line growth of 15% (excluding acquisitions and currency), and the increase in operating profit (EBITDA) was as much as 28%. Columbus has created a solid foundation for the upcoming strategy period – New Heights – which in particular will focus on boosting profitability with an EBITDA margin of 15% by the end of 2026. Columbus expects 10% compounded annual growth in 2024 – 2026.
New analysis of Columbus’ financial result for Q2 2023 published by Aktieinfo31.8.2023 12:16:10 CEST | Pressemeddelelse
The analysis concludes, among other things, that: Columbus delivers what is promised. Growth adjusted for acquisition and currency was achieved with 16% in the second quarter (19% adjusted for currency and including acquisitions) and 14% in the first half of the year. In the second quarter, Columbus managed to invoice 70% of the consultants' hours. This testifies increased efficiency, which is one of the goals of the Focus23 strategy. With the execution of the Focus23 strategy, Columbus appears stringent and focused on servicing the core customer group. The analysis can we found here (in Danish): https://ir.columbusglobal.com/static-files/96127943-4e58-4e34-97be-3790aa0f0a06
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