Cancom (COK) Q3 2024 earnings summary

Executive summary

• Group revenue grew 18.4% year-over-year to €1,257.9 million for 9M.24, driven by the full consolidation of CANCOM Austria, despite weak organic growth and subdued IT hardware demand.

• Q3.24 revenue increased 1.6% year-over-year, with Germany returning to organic growth, though overall demand remains muted.

• EBITDA rose 13% to €86.5 million for 9M.24, but the margin declined to 6.9% due to inflationary pressures and digitalization investments.

• Strategic partnerships, M&A activity, and integration of SBSK and DextraData enhanced regional presence and service offerings.

• Share buyback completed in 2024, totaling €146.7 million and representing 10% of share capital.

Financial highlights

• 9M.24 group revenue: €1,257.9m (+18.4% yoy); EBITDA: €86.5m (+13.0% yoy); EBITDA margin: 6.9% (9M.23: 7.2%).

• Q3.24 group revenue: €422.6m (+1.6% yoy); EBITDA: €31.0m (-11.4% yoy); EBITDA margin: 7.3% (Q3.23: 8.4%).

• Gross profit for 9M.24: €513.2m (+26.1% yoy); margin 39.4%.

• Operating cash flow for 9M.24 at €58.5m, showing a positive trend.

• EPS from continued operations (undiluted) for 9M.24 at €0.77 (9M.23: €0.66).

Outlook and guidance

• 2024 revenue forecast lowered to €1,650–1,750m due to uncertain market environment.

• 2024 EBITDA guidance now €112–130m; EBITA forecast at €57–75m.

• Gross profit forecast for 2024: €640–710m.

• Management notes high macroeconomic and geopolitical uncertainty, especially in Germany and Austria, impacting public sector and SME demand.