Cancom (COK) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue grew 29.1% year-over-year to €835.3m, mainly from the CANCOM Austria acquisition, while organic revenue declined 6.5% due to weak hardware demand.

• EBITDA increased 33.7% to €55.5m, with margin at 6.6%, supported by strong service business performance.

• International segment, especially Austria, contributed significantly to growth, while Germany underperformed expectations.

• Net profit for H1 2024 was €17.3m, up from €13.5m in H1 2023.

• SMB and public sector demand remained subdued due to economic and budgetary constraints.

Financial highlights

• Q2 2024 revenue rose 19.9% year-over-year to €394.7m; organic revenue declined 6.8%.

• Q2 2024 EBITDA increased 43.7% to €25.1m; margin improved to 6.4%.

• Gross profit rose 38.3% year-over-year to €339.2m, with gross margin at 40.6%.

• Operating cash flow improved to €68.6m in H1 2024, up nearly €150m year-over-year.

• Net cash position at €168.2m at end of H1 2024, up from €142.0m a year earlier.

Outlook and guidance

• 2024 forecast confirmed: revenue €1,750–2,000m, gross profit €640–740m, EBITDA €130–155m, EBITA €75–100m.

• Long-term digitalization trends and IT demand remain intact, but macroeconomic and geopolitical uncertainties persist.

• IT market in Germany expected to grow 5.4% in 2024; Austria’s IT market forecasted to grow 8.6%.