Stuttgart, Germany, July 31, 2020. RIB Software SE, the world's leading provider of iTWO 4.0 cloud enterprise platform technology, today announced its key financial figures for the first half of 2020.
Despite COVID-19, Group revenue increases by 42.6% to € 131.9 million (py: € 92.5 million)
Recurring revenues (ARR) again grew significantly by 45.0% to € 75.1 million (py: € 51.8 million)
International sales increase by 52.4% to € 82.6 million (py: € 54.2 million)
EBITDA increases by 117.2% to € 46.7 million (py: € 21.5 million) - EBITDA margin is 35.4% (py: 23.2%)
Cash flow from operating activities grows by 47.0% to € 38.8 million (py: € 26.4 million)
EBT increases by 225.3% to € 28.3 million (py: € 8.7 million)
VERY STRONG REVENUE AND PROFIT DEVELOPMENT IN THE FIRST HALF OF 2020
Despite the global economic impact of the COVID-19 pandemic, we can look back on a very successful first half of the year. The strong growth during the investment phase with a planned average annual growth rate of 30-60% until 2022 continued in the first half of 2020 after the successful Q1 2020. In addition, a phase III contract was concluded in the second quarter of 2020. Group revenues increased by 42.6% to € 131.9 million (previous year: € 92.5 million), whereby the organic revenue growth of the iMTWO software segment was 13.7% above plan. Recurring revenues (ARR) grew by 45.0% to € 75.1 million (previous year: € 51.8 million). Non-recurring revenues (NRR) increased by 38.7% to € 26.9 million (previous year: € 19.4 million). As in the first quarter of 2020, service revenues developed very positively due to the large number of projects, rising by 55.4% to € 25.8 million (previous year: € 16.6 million).
The EBITDA increased by 117.2% to € 46.7 million compared to the previous year (€ 21.5 million). The EBITDA margin of 35.4% exceeded the expected range of 20-30% during the investment phase. The operating EBITDA increased by 102.0% to € 41.2 million (previous year: € 20.4 million). The net cash flow from operating activities increased by 47.0% and reached € 38.8 million (previous year: € 26.4 million). Amortization from purchase price allocation (PPA) amounted to € 7.9 million, up on the previous year (€ 4.8 million). The positive development is also reflected in the EBT, which increased by 225.3% to € 28.3 million (previous year: € 8.7 million). Adjusted for the PPA amortization, the increase is 168.1% to € 36.2 million (previous year: € 13.5 million). EAT rose significantly by 371.7% to € 21.7 million (previous year: € 4.6 million).
SUCCESSFUL TAKEOVER BY SCHNEIDER ELECTRIC
On July 10, 2020, Schneider Electric announced the successful completion of the voluntary public tender offer for all outstanding shares (ISIN: DE000A0Z2XN6) of RIB Software SE. All closing conditions have been fulfilled in the meantime, including the CFIUS approval received on July 2, 2020. The settlement of the voluntary public takeover bid has thus been completed.
GROUP OUTLOOK FOR THE FISCAL YEAR 2020
Due to the uncertainties caused by Covid-19, we have currently limited our M&A activities which will have an impact on the planned revenue and EBITDA contribution from these deals. In the context of further cost reductions and liquidity conservation, we have heavily reduced investments in new business areas, such as xYTWO, and are focusing on the successful expansion of the iMTWO segment. In this context, we plan to sell the E-Commerce business in the segment xYTWO, which does not contribute to EBITDA.
On this basis and taking into account the further probable consequences of the COVID-19 pandemic, provided that these do not intensify during the year, the Company issues a guidance for the 2020 financial year of the RIB Group, according to which the Company now plans to achieve revenues of between € 240 million and € 270 million and an operating EBITDA of between € 55 million and € 75 million. See also our ad hoc release dated June 25, 2020.
* EBITDA adjusted by currency effects (6M 2020: € -0.3 million; 6M 2019: € +1.1 million) and one-off / special effects (6M 2020: € +5.7 million; 6M 2019: € 0.0 million).
** Cash and cash equivalents, time deposits and available-for-sale securities. Previous year as of December 31, 2019.
*** Previous year as of December 31, 2019.
The complete Interim Report (January - June 2020) is available for download on the RIB Group website under Investor Relations.