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Q3 Report 2020

Columbus A/S
·4-min read

Release no. 17/2020


EBITDA* improving due to tight cost control

We came out of Q3 with a good result despite operating in markets being impacted by COVID-19. Our business demonstrated resilience during the first volatile months since the outbreak which is thanks to the strong commitment of Columbus’ employees”, says Chairman of the Board, Ib Kunøe.

Financial highlights for the period 1 January to 30 September 2020

All numbers and comments are on the continued business excluding assets classified as held for sale and discontinued businesses.


DKKm

Q3 2020

Q3 2019

Development

YTD 2020

YTD 2019

Development

Revenue reported

338

391

-13%

1,241

1,300

-5%

Revenue from acquisitions

-6

0

0%

-33

0

0%

Organic revenue

332

391

-15%

1,207

1,300

-7%

EBITDA reported

40

52

-23%

110

122

-10%

Customer provision

15

39

-63%

15

39

-63%

Reversal of earn-out

-28

-71

-61%

-28

-71

-61%

EBITDA from acquisitions

-2

0

0%

-7

0

0%

Normalized EBITDA

24

19

25%

89

90

0%

Normalized EBITDA margin

7%

5%

47%

7%

7%

7%



DKKm

Q3 2020

Q3 2019

Development

YTD 2020

YTD 2019

Development

Columbus Software licenses

0

1

-52%

3

6

-55%

Columbus Software subscriptions

4

4

6%

16

16

-1%

Columbus Cloud

3

2

24%

8

6

46%

External software licenses

14

15

-8%

57

52

11%

External software subscriptions

33

39

-14%

128

138

-7%

External cloud

12

9

36%

31

24

32%

Services

268

315

-15%

983

1,033

-5%

Other

4

6

-38%

14

25

-44%

Total net revenue

338

391

-13%

1,241

1,300

-5%

EBITDA

40

52

-23%

110

122

-10%

Performance highlights for Q3 YTD 2020:

  • Revenue declined by 5%, amounting to DKK 1,241m

  • EBITDA declined by 10% to DKK 110m, but normalized EBITDA stable at DKK 89m

  • Profit before tax declined by 25% to DKK 56m. Normalized profit before tax declined by 16%

  • Recurring Revenue improved by 6%, constituting 25% of revenue

  • Columbus Care grew by 16% to DKK 121m

  • Cloud Services grew by 35% to DKK 40m, due to continued cloud conversion

  • Staff cost decreased by 1% to DKK 784m as an effect of the capacity adjustment in March and April

  • Other external cost decreased by 9% to DKK 109m. Reduction is primarily related to less internal travel cost

  • Cash position improved by DKK 5m compared to 31 December 2019, total cash position amounts to DKK 152m

  • Equity increased by DKK 30m since 31 December 2019, total equity of DKK 698m

Other highlights

Focus and simplicity:

  • Launch of new strategy

  • New CEO in process

  • To-Increase software business, a very valuable asset, held for sale (revenue DKK 112.5m YTD, EBITDA DKK 58m)

  • New organizational structure in the US


Outlook for 2020

Based on the financial performance in Q3 2020, current order book and pipeline forecast, our full year guidance for 2020 for the total business, including assets held for sale and discontinued businesses is as follows:

  • Revenue is expected to be in the range of DKK 1,750m and DKK 1,850m.

  • EBITDA is expected to be in the range of DKK 190m and DKK 200m.

Adjusted for the assets held for sale and discontinued businesses, our full year guidance for 2020 for our continued business is as follows:

  • Revenue is expected to be in the range of DKK 1,600m and DKK 1,700m.
    (Revenue in 2019 was DKK 1,775m)

  • EBITDA is expected to be in the range of DKK 125m and DKK 135m.
    (EBITDA in 2019 was DKK 160m)

Live webcast and conference call

Columbus is hosting a live webcast and conference call at 12 November 2020 at 13:00 CET. The webcast is hosted by Interim CEO & Corporate CFO Hans Henrik Thrane.

Webcast: Please login to the webcast via Columbus’ investor site: https://ir.columbusglobal.com/calendar-and-events

Conference call dial-in details:

  • Denmark: +45 32 72 80 42

  • UK/International: +44 (0) 2071 928000

  • USA: +1 6315107495

  • Conference-ID: 1793581

Please dial in a few minutes before to allow time for registration of name and company. Questions can be raised during the webcast.

For further information, please contact:

About Columbus

Columbus is a global IT services and consulting company with more than 2,000 employees serving 5,000+ customers worldwide. Columbus helps ambitious companies to maximize, transform and futureproof their business digitally. Columbus’ innovative solutions and services portfolio 9 Doors to Digital Leadership® delivers end-to-end digital solutions like cloud ERP, Digital Commerce, Data & Analytics, and Application Management that address the lifecycle and sustainability demands of the retail, distribution, food, and manufacturing industries. Columbus was founded in 1989 and is headquartered in Denmark with offices and partners all over the world, delivering solutions and services locally—on a global scale. Columbus A/S is listed on Nasdaq Copenhagen – COLUM

For more information: www.coloumbusglobal.com.


* Normalized EBITDA


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