Cloud Business Growing Rapidly / Impact on Earnings / 9 Month Figures 2017/18

Unaudited results (1 Oct 2017 – 30 Jun 2018)
Sales: EUR 248.4 million (+11% over prior year), strong cloud business: Q1 plus 25%, Q2 plus 30%, Q3 plus 33%, cloud and software revenues: EUR 148.0 million (+14% over prior year), EBITDA of EUR 21.8 million on par with prior year, EBIT: EUR 13.9 million (minus 6% over prior year), Revenue forecast for 2017/18 confirmed, refined EBIT projection for 2017/18

Filderstadt, 08 August 2018 – All for One Steeb AG, the Number 1 in the German-speaking SAP market, a leading IT service provider, and sought-after partner for digitalisation in the midmarket sector, today published its unaudited results for the period 1 October 2017 to 30 June 2018.

The high pace of growth in revenues continued in 9-month comparison with All for One Steeb able to increase sales on an almost exclusively organic basis by 11% from EUR 223.0 million to 248.4 million. Only some 2 percentage points are attributable to growth through acquisitions. Revenues from cloud services and support – plus 25% in Q1, plus 30% in Q2 and plus 33% in Q3 – posted a gain of 29% to EUR 43.6 million after 9 months. Revenues generated from software licenses increased by 10% to EUR 32.9 million. Software support revenues continue to grow reliably and improved by 7% to EUR 71.5 million. Revenues from consulting and services posted a gain of 8% to EUR 100.4 million.

In 9-month comparison, the two segments were marked by contrasting developments in terms of earnings. Within the LOB segment (lines of business solutions portfolio) All for One Steeb is investing more intensively in expanding the workforce (sales, marketing and consulting) and the corresponding recruitment and training, but also in changes to the organisation (one-time charges: EUR 0.6 million). As a result, the significant increase in LOB segment revenues of 16% to EUR 48.2 million was offset by a major decline in EBIT of EUR 1.8 million to minus 0.8 million. Despite major investments in SAP S/4HANA (know-how, experience, business process library), the Internet of Things (IoT), machine learning and the platform business (SAP Leonardo, Microsoft Azure, AWS), the CORE segment (ERP and collaboration solution packages for corporate core business processes) was able to increase its EBIT by 5% to EUR 14.7 million and its segment revenues by 10% to EUR 209.9 million.

The Group EBITDA after 9 months was on par with that of the prior year (EUR 21.8 million), whereas the EBIT was EUR 13.9 million (minus 6%) for an EBIT margin of 5.6% (Oct 2016 – Jun 2017: 6.7%). The EBT was EUR 13.2 million (Oct 2016 – Jun 2017: EUR 14.4 million). Earnings after tax decreased 12% to EUR 9.0 million and correspond to earnings per share of EUR 1.84 (Oct 2016 – Jun 2017: EUR 2.03). The equity ratio as at 30 June 2018 was 42% (30 Sep 2017: 41%) while the number of employees increased to 1,631 (30 Jun 2017: 1,446).

»The momentum is good. Our cloud services and support revenues are increasing sharply from one quarter to the next. Our intensive investments in the groundwork for the successful and efficient transition of our customers’ to SAP S/4HANA and in fully establishing our cloud-driven LOB segment will continue into the fourth quarter of our financial year 2017/18. In terms of sales, we are committed to our annual forecast for 2017/18, which was most recently raised in May 2018 to project total revenues of between EUR 325 million and 335 million. Our EBIT forecast for 2017/18 remains in the range of EUR 20.5 million to 22.0 million and could be achieved at its lower end«, said All for One Steeb CFO Stefan Land.

All for One Steeb AG will be publishing its complete quarterly statement for the 9-month period 2017/18 as scheduled on 10 August 2018.