Pliezhausen, 23 May 2024. DATAGROUP SE (WKN: A0JC8S) today publishes its financial results for the second quarter and first half of 2023/2024. Second quarter revenue grew by 5.7 % as expected and revenue also increased on a half-yearly basis. Development in earnings continues to reflect the ongoing investments in the future fields of artificial intelligence, cyber security and cloud technologies as planned and is in line with expectations. In the current fiscal year 2023/2024, the company has already received orders of over EUR 21m EUR from 21 new customers in the CORBOX business, 38 customers have extended their contracts and 38 customers have renewed their contracts. The outlook for the full year 2023/2024 is entirely confirmed.

Revenues of EUR 127.7m in the second quarter were 5.7 % above the prior-year quarter (EUR 120.8m). They added up to EUR 248.7m on a half-yearly basis compared to EUR 247.1m a year before. Thanks to a focus on the profitable CORBOX business, gross profit increased slightly disproportionately in the second quarter by 6.6 % to EUR 91.8m (PY: EUR 86.2m). “Our investments in the future fields of AI, cyber security and cloud pay off as expected”, comments Andrease Baresel, CEO of DATAGROUP, with respect to the half-year results. “Revenue will continue to grow over the year with the start of new customer contracts. The primary reason for this assessment is the continuing high level of incoming orders in the CORBOX core business which is mainly based on the skills in the future fields. Having acquired ISC, we also support the growing demand for SAP services and consulting.” As recently as mid-April, for instance, DATAGROUP has signed a contract with EEW Energy from Waste GembH (EEW). EEW is one of the leading companies in waste disposal and energy supply in Germany and will make use of full IT outsourcing in the cloud with DATAGROUP. The contract has a term of five years and a volume of more than EUR 5m per year. “The use of artificial intelligence will take provisioning of IT services to a completely new level of productivity and quality and contribute to strengthen DATAGROUP’s competitiveness going forward”, continues Baresel.

Investments in the future and further acquisitions

Having invested in the three future topics has burdened earnings by a total of approx. EUR 3m in the first half of 2023/2024 as scheduled. Yet, operating earnings before taxes, interest, depreciation and amortization (EBITDA) stood at EUR 38.1m (PY: EUR 39.4m), the EBITDA margin was 15.3 % (PY 16.0 %). As a result of investments, earnings before interest and taxes (EBIT) of EUR 20.8m also came in below the prior-year level (PY: EUR 22.8m), the EBIT margin was 8.3 % (PY 9.2 %). 

Selective inorganic growth by way of acquisitions still plays an important role in DATAGROUP’s business strategy. DATAGROUP is focused on regional system houses on their path to becoming an IT service provider, companies with strong digitization expertise, and IT service providers in the SME target market.

This strategy has been successfully implemented on several occasions in the current year. On 1 January 2024, IT service provider iT TOTAL was acquired. With a staff of 40 employees, iT TOTAL has established IT projects, a retail business with associated service revenue as well as a strongly growing managed services segment. With the CORBOX, an established modular suite of services, which covers the entire breadth of corporate IT, DATAGROUP is an ideal partner to further drive the expansion towards a full-service provider and to provide the customers of iT TOTAL with an even broader portfolio of IT services going forward. DATAGROUP has already acquired three companies in the current fiscal year. CONPLUS, IT service provider and expert for SAP Business One, was acquired in the first quarter of 2023/2024 and has since strengthened the SME segment of DATAGROUP. The purchase of IT consulting services provider ISC Innovative Systems Consulting AG in the current third quarter has already been the 34th acquisition since the company’s IPO. This acquisition strengthens DATAGROUP’s expertise in SAP and the company gains presence in Southern Germany.

Balance sheet development and cash flow

The balance sheet total increased to EUR 490.9m (30.09.2023: EUR 465.3m) compared to the end of the last fiscal year. At 29.0%, the equity ratio is still very solid (30.09.2023: 31.7 %). Liquid funds amounted to EUR 25.0m (30.09.2023: EUR 21.9m).

Net debt was EUR 142.3m at the end of the first half 2023/2024 in comparison to EUR 112.6m at the end of the fiscal year on 30.09.2023. The increase is due in particular to the two acquisitions in the first half of the year and the payment of the dividend. Accordingly, the net debt to EBITDA ratio is 1.87 (30.09.2023: 1.4). The cash flow development continues to be stable at a cash flow from operating activities of EUR 17.0m (PY: EUR 28.4m).

Consistent dividend policy and unchanged positive outlook

The solid economic situation of the company is also reflected in the dividend policy. In March, DATAGROUP distributed a dividend of EUR 1.50 per share (PY: EUR 1.10) to its shareholders from retained earnings. This was equivalent to a payment of EUR 12.5m (PY: EUR 9.2m), which is the highest dividend payout since the IPO. “Our CORBOX-Service-as-a-Product approach ensures a reliable and stable long-term development thanks to recurring revenues and good margins”, explains Andreas Baresel. “In view of the current figures, we look to the second half of the year with great confidence. We are in talks with many other new customers. The guidance presented by us at the Annual General Meeting is maintained unchanged. We continue to expect revenue in FY 2023/2024 to grow year-on-year and confirm the revenue guidance in a range of EUR 510–530m. Earnings should also come in at the expected range of EUR 77–81m for EBITDA and EUR 43–46m for EBIT.”

The half-year financial statements are available for download under datagroup.de/publications.

Two online conferences with Andreas Baresel, CEO/CFO, will take place today, 23 May 2024, to explain the Q2/H1 2023/2024 figures.

Please register under the following links:

10.00 a.m.: German-language investor & press call: https://montegaconnect.de/event/b142lqiw8ii6kuiis43k1tbkxxltzpmx

3.00 p.m.: English-language investor & press call: https://montegaconnect.de/event/wbxsibkzt5u0p0nd1uv4zjmza25mdb4e