Adesso SE (ADN1.DE), a German IT services provider, announced on Thursday that its third-quarter EBITDA—a crucial indicator of earnings—rose by 37% compared to the previous year, reaching 38.9 million euros. This growth occurred despite ongoing investments in its product business.
The EBITDA margin for the third quarter improved significantly to 11.8%, aligning well within the Executive Board's profitability target range of 11% to 13%. Sales during this period increased by 15% year-over-year, amounting to 330.2 million euros.
Over a nine-month span, the company transitioned to consolidated earnings of 2.5 million euros from a loss of 0.3 million euros the previous year. Adesso highlighted that strong demand for its digitalisation services, combined with reduced hiring momentum and additional measures to enhance capacity utilisation—bolstered by an extra working day in the third quarter—positively impacted profitability.
Sales revenues experienced a 15% organic boost, climbing to 961.3 million euros, consistent with the widespread demand for Adesso's offerings.
Looking forward, Adesso anticipates the continuation of the positive earnings trend, supported by improved capacity utilisation figures, stable demand, and the benefit of an additional working day in the quarter. The company aims to achieve its usual level of profitability throughout a full year.
Adesso stated, "Even without additional license income, the Executive Board is confident that the earnings forecast for 2024, projected at between 80 million and 110 million euros with sales exceeding 1.25 billion euros—which was revised in early August—is attainable due to visible progress in our core IT services business."
