Proact reports preliminary figures for the fourth quarter of 2019

Proact today reports preliminary figures for the fourth quarter of 2019 which, like the previous quarter, are characterized by challenges in Business Unit West, including Belgium, the Netherlands and Germany. The improvement plan implemented in Germany in 2019, related to sales challenges, are proceeding as expected and earnings improved compared to the previous quarter.
As in the previous quarter, the challenges remain in the Netherlands where lower margins and higher sales costs had an impact on earnings. In Business Unit UK, margins were lower and in Business Units Nordics, earnings performance was good compared to the previous quarter.

Compared with the third quarter, the group's revenues increased to 991 MSEK and adjusted EBITA to 49 MSEK, where seasonal variations and contributions from the acquisition of PeopleWare had positive effects.

The quarter's earnings have been adjusted for acquisition costs of 6 MSEK, largely related to the acquisition of PeopleWare, and for one-off costs of 5 MSEK for the structural changes in the business that were initiated earlier in the year.

To show the development, the fourth quarter's results are compared with the previous quarter and then with the same quarter from last year.

Preliminary figures for the fourth quarter of 2019 (third quarter of 2019) in brief:

• Revenue increased by 41% to 991 (701) MSEK. Organically, revenues increased by 32% to 928 MSEK.
• Adjusted EBITA amounted to 48,9 (36,9) MSEK, corresponding to an adjusted EBITA margin of 4,9% (5,3%).
• Items affecting comparability of -11,2 MSEK relate to costs for acquisitions and structural changes.
• New agreements regarding cloud services have been signed to a total value of 97 (87) MSEK.

Preliminary figures for the fourth quarter of 2019 (fourth quarter of 2018) in brief:

• Revenue increased by 2% to 991 (967) MSEK. Organically, revenue decreased by 3% to 928 (954) MSEK.
• Adjusted EBITA amounted to 48,9 (57,7) MSEK, corresponding to an adjusted EBITA margin of 4,9% (6,0%).
• Items affecting comparability of -11,2 MSEK relate to costs for acquisitions and structural changes.
• New agreements regarding cloud services have been signed to a total value of 97 (176) MSEK.

“During the quarter we saw an improvement in results in Germany and a positive development in PeopleWare, the recently acquired company in the Netherlands. Cloud service revenues increased by 16% in the quarter compared to the previous year and we signed new contracts with a contract value of 97 MSEK.

We are not satisfied with the quarter's results, but our overall goals remain, where our cloud services and accelerated growth through acquisitions are in focus.

At the same time, we must also succeed in maintaining revenue and margins in the system business with associated support and consulting services”, says Jonas Hasselberg, CEO and President at Proact IT Group.

The figures are preliminary and not yet audited by the company's auditors. Further details will be presented in conjunction with the company's regular year-end report on February 6, 2020.

For more information please contact:
Jonas Hasselberg, CEO and President, Proact IT Group AB, +46 722 13 55 56, jonas.hasselberg@proact.eu
Jonas Persson, CFO and IR, Proact IT Group AB, tel: +46 733 56 66 90, jonas.persson@proact.eu

About Proact
Proact is Europe’s leading independent data centre and cloud services provider. By delivering flexible, accessible and secure IT solutions and services, we help companies and authorities reduce risk and costs, whilst increasing agility, productivity and efficiency. We’ve completed over 5,000 successful projects around the world, have more than 3,500 customers and currently manage in excess of 100 petabytes of information in the cloud. We employ over 1,000 people in 14 countries across Europe and North America. Founded in 1994, our parent company, Proact IT Group AB (publ), listed on Nasdaq Stockholm in 1999 (under the symbol PACT).

For further information about Proact’s activities please visit us at www.proact.eu

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