DATAGROUP with strong 15 % growth in the first quarter of 2024/2025

• Organic revenue has also grown significantly at +8.0 %
• Earnings impacted by transition and start-up costs associated with new customer projects
• EBIT at EUR 9.2m, corresponding EBIT margin at 6.6 %, expected to return to normal during the fiscal year
• Guidance for fiscal year 2024/2025 due to be published at the Annual General Meeting on 18 March 2025
• Continuing strong development in CORBOX core business

Pliezhausen, 20 February 2025. DATAGROUP SE (WKN: A0JC8S) today publishes the 2024/2025 first-quarter financial results. The strong new customer business of the past fiscal year 2023/2024 is reflected in a continuous significant increase in quarterly revenue. Total revenue has grown by 15 % in the first quarter of 2024/2025, organic growth was up 8 % versus the prior-year quarter. In the first quarter of 2024/2025, orders from new customers added up to EUR 11.6m, while cross- and upselling contracts worth EUR 7.1m have been secured. The clear focus on organic growth continues to pay off.

Operating earnings are burdened by the implementation of new customer orders, leading to a corresponding higher proportion of hardware in revenue as well as transition and start-up costs. The change in the product mix with a higher proportion of hardware resulted in an increase in material expenses of 26.6 % to EUR 44.2m (PY EUR 34.9), personnel expenses rose to EUR 70.2m (PY EUR 62.9m) on the back of a higher headcount which is due to new acquisitions and an increase in staff in future fields.

EBITDA came in at EUR 17.6m (PY EUR 18.5m) and EBIT was EUR 9.2m (PY EUR 10.1m). Accordingly, the EBIT margin was 6.6 % in the first quarter after 8.4 % in the prior-year quarter.

“Our focus on organic growth makes an impact: Revenue has increased significantly in a challenging market environment. It is true that the associated investments weigh on earnings in the short term, however, they are the foundation for our sustainable success. In the long term, it will strengthen our resilience and the stability of our business model”, says DATAGROUP’s CEO Andreas Baresel, commenting on the results. “Growth takes priority over margin in this environment. We have invested in our new customers, transitions cost money, this has temporarily burdened our margin as scheduled. On a full-year basis, we expect margins to return to a “normal” level.

Balance sheet development and cash flow

In the first quarter of 2024/2025, the balance sheet total increased to EUR 546.1m (30.09.2024: EUR 537.4m). The equity ratio remained at 28.6 % at the balance sheet date. Liquid funds dropped slightly to EUR 35.0m (30.09.2024: EUR 36.6m).

Net debt was EUR 155.6m at the end of the fourth quarter (30.09.2024: EUR 139.1m). This increase was mainly driven by the acquisition of TARADOR, the share buyback as well as roll-out projects. Accordingly, the net debt to EBITDA ratio is 2.2 (30.09.2024: 1.7). Cash flow is slightly negative with a cash outflow from operating activities of EUR -0.4m after a cash inflow of EUR 12.7m in the quarter a year before, which is mainly attributable to a substantial reduction of trade payables.

Strong new customer business

DATAGROUP has registered strong growth in new customer business in the first quarter. The new contracts include IT outsourcing, cyber security, cloud services and workplace management as well as other CORBOX services. The major order from kubus IT, the IT service provider of AOK Bavaria and AOK PLUS, is a particularly important contract conclusion. It covers the provisioning of workplace services for over 17,000 workplaces. The large number of new customer orders from different industries confirms the strong market position of DATAGROUP and underlines the relevance of professional services for high-performance IT.

Acquisition of IT security service provider TARADOR

DATAGROUP increasingly focuses on organic growth and the continuous expansion of the company’s service portfolio. At the same time, targeted strategic investments are made to continue to expand the company organically as well. The acquisition of TARADOR GmbH in the first quarter is an example of this approach: As an established IT service provider with a clear focus on small and medium-sized companies as well as public institutions, TARADOR is an ideal addition to the existing portfolio of DATAGROUP.  The newly gained expertise strengthens the cyber security skills within the group and contributes to the DATAGROUP's sustainable growth strategy. This integration also leads to significant cross- and upselling potential, which likewise drives organic growth and further optimizes the services offered to customers.

Ordinary Annual General Meeting and guidance for fiscal year 2024/2025

DATAGROUP has invited its shareholders to the ordinary Annual General Meeting on 18 March 2025 at the company’s headquarters in Pliezhausen. On the same day, the company will publish its guidance for fiscal year 2024/2025.

Invitation to the Conference Call on 20 February 2025

Two conference calls with Andreas Baresel, CEO/CFO, on the preliminary first quarter results 2024/2025 will be hosted on 20 February 2025.

Please register at:

10 a.m.: German-language investor & press call:

https://www.appairtime.com/event/8219df4a-e842-4fe9-b130-8dee43ba1fad

3 p.m.: English-language investor & press call:

https://www.appairtime.com/event/55572de2-7ff1-4ac2-94cd-1c36ccb65ccd

About DATAGROUP
DATAGROUP is one of the leading German IT service providers. Some 3,500 employees at locations across Germany design, implement, and operate IT infrastructures and business applications. With its CORBOX product, DATAGROUP is a full-service provider, supporting global IT workplaces for medium and large enterprises as well as public authorities. DATAGROUP is growing organically and through acquisitions. The acquisition strategy is particularly noted for its optimal integration of new companies. DATAGROUP is actively participating in the consolidation process with its “buy and turn around” and its “buy and build” strategy.

www.datagroup.de

PRESS / Investor Contact
Anke Banaschewski
Investor Relations & Corporate Communication
anke.banaschewski@datagroup.de