Cancom returns to form, but a little worried about the shut down

Cancom is reporting quarterly revenue growth above 20 percent, preliminary figures show.

The reseller’s first quarter numbers show revenues were up 27.3 percent year on year to €453 million, which means it is back in business.

It has often exceeded 20 percent growth in its quarterly financials, however, that rate slowed in its final quarter of 2019, when sales grew by 18.9 percent.

Meanwhile, EBITDA reported  €26 million in first quarter, up 3.5 peryear on year.

Cancom CEO Rudolf Hotter said the sale of software licenses and hardware to enable remote working was the main reason for its revenue performance.

“We achieved an outstanding revenue performance in the first quarter and were able to acquire many new customers. There was particular demand for laptops and tablets for working on the move or in the home office.”

EBITDA growth was impacted by a one-off executive board severance payment, and because of a strong performance for its low-margin PC client business.

Cancom’s cloud solutions revenues grew by 35 per cent, while IT Solutions rose by 25.5 percent.  IT Solutions made up most of the group’s first quarter sales at €366.3 million.

The company is forecasting that its second quarter will be more adversely impacted by the coronavirus pandemic.

“It is already becoming apparent that, as expected, the second quarter will be significantly burdened by the corona crisis and the almost complete shutdown in April and May. Although uncertainty about the further economic development remains very high, in view of the high growth rate in the first quarter and assuming a normalisation of the general conditions in the third and fourth quarters, we are maintaining our annual forecast of moderate revenue and earnings growth”, he said