DATAGROUP Projects Positive Financial Outlook for 2023/2024

DATAGROUP SE, in its latest Annual General Meeting, shared an optimistic financial forecast for the fiscal year 2023/2024. The company anticipates revenue to range between EUR 510 million to EUR 530 million, marking an increase from the previous year's EUR 497.8 million. This projection incorporates expected contributions from organic and inorganic growth, as well as adjustments for legacy contract reductions.

The company highlighted a strong start to the year with new CORBOX customer orders promising an annual revenue of EUR 18.5 million. However, it is important to note that the full financial effects of these contracts will mostly materialize in the next fiscal year due to their start-up phases. Additionally, DATAGROUP plans to phase out approximately EUR 20 million in revenue from low-margin legacy contracts, a reduction from the previous year's EUR 38 million. This move aims to pave the way for more profitable organic growth.

Regarding profitability, DATAGROUP forecasts an EBITDA between EUR 77 million and EUR 81 million, along with an EBIT ranging from EUR 43 million to EUR 46 million. These expectations account for significant investments in areas deemed to be future growth drivers, including artificial intelligence, cyber security, and cloud technologies. The company's CEO, Andreas Baresel, expressed confidence in their strategic focus, citing market research predictions on IT spending trends towards these new technologies.