CANCOM downgrades FY23 guidance
The reseller also shrank expectations for its FY22 results
German IT service provider CANCOM Group has backtracked on its full-year 2023 guidance following a "one-time" burden to its EBITDA and EBITA.
Last year the reseller downgraded its FY22 forecast, predicting revenues in the range of €1.280bn to €1.330bn and ended up reporting revenues of €1.292bn for its full-year 2022 results.
For the second quarter of 2023, the group achieved revenue growth of 10.2 per cent to €329.4m (£284.8), based on the preliminary figures (prior year: €298.8m).
At €128.3m, gross profit was up around 22.3 per cent on the prior year's figure of €104.9m.
CANCOM said EBITDA and EBITA in the second quarter were burdened by one-time special effects in the amount of €10.2m.
This includes severance payments and release costs of €5.9m, CANCOM said, as part of the efficiency and profitability programme.
Costs for prematurely terminated projects had an additional negative effect on EBITDA in the amount of €3.1m as well as one-time M&A expenses in the amount of €1.2m.
Total EBITDA was €17.4m in Q2 compared to €24.7m in the second quarter 2022, while EBITA was €5.4m in Q2 2023 (prior year: €14.4m).
Due to the measures taken as part of the efficiency and profitability programme and in view of the integration of Austrian MSP K-Businesscom, as well as the economic outlook for the second half of 2023, CANCOM's executive board is re-evaluating its forecast.
It now expects revenues in the range of €1.520bn to €1.50bn (previously €1.63bn to €1.70bn).
New CSO at CANCOM
CANCOM also announced that Jochen Borenich, previously chief operating officer at K-Businesscom, has taken up his new position as chief sales officer of CANCOM.
The appointment of Borenich to the executive board of CANCOM was agreed at the time of the takeover of K-Businesscom and is another important step in the merging of the two duo, the German company said.
The executive board of CANCOM is now made up of of Rüdiger Rath (CEO), Jochen Borenich (CSO) and Thomas Stark (CFO).
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