CANCOM Group sees international growth in 2024
Munich-HQ CAMCON Group holds its own thanks to international business segment.
CANCOM Group closed the first half of 2024 with growth across key financial metrics.
Revenue increased by 29.1 per cent to €835.3m (£714m) in the first half of the year.
Gross profit reached €339.2m, 38.3 per cent higher than the prior year's figure.
EBITDA of €55.5m (prior year: €41.6m) and EBITA of €28.7m (prior year: €18.9m) also increased significantly.
These strong figures can be attributed to a significant contribution from the CANCOM Austria Group.
Overall, the international business segment developed very positively, despite a slight decline in the Germany business segment.
Founded in 1992, CANCOM has evolved into a Europe-wide service provider.
Its range of services and solutions includes classic system house IT solutions as well as data-based digital solutions, managed services and cloud services.
Based in Munich, Germany, the pan-European company is active in over 80 locations in Central Europe, including Austria, where the company is currently thriving.
"In the second quarter, the development of the year to date continued as expected. While the CANCOM Group recorded significant growth due to acquisitions, the operating business was characterised by a continued reluctance to invest on the part of our small and medium-sized customers in the private and public sectors," comments Rüdiger Rath, CEO of CANCOM SE.
Cash flow from operating activities totalled €68.8m in the first half of 2024 (compared to a €79.8m loss in the prior year), a year-on-year improvement of around €150m.
At €277m(prior year: €82.5m), revenues in the international business segment developed very positively in the first half of the year, in particular due to the contribution of the CANCOM Austria Group. With a business segment EBITDA of €21.4, the EBITDA margin was 7.7 per cent at the end of the first half of the year.
The difference in revenue was attributed to a continued reluctance to invest across the Germany segment, particularly amongst small and medium-sized customers in the private and public sectors, which led to a decline in revenue of 1.1 per cent to €558.4m.
Secondly, the Austrian ecosystem has proven to be extremely innovative. In December 2018, the Austrian government launched Silicon Austria Labs (SAL), Austria's top research centre for Electronics and Software Based Systems (ESBS).
Austria has also made it its goal to become one of the "leading digital nations" and is investing heavily in ICT innovations and research.
This desire to transform the country into a global IT leader plays a crucial role in the growth of CANCOM Austria Group.