Transcom Holding AB (publ): Third quarter report 2020

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Helene Ruda Nov 11th, 2020

Transcom Holding AB (publ): Third quarter report 2020


Third quarter 2020 highlights

  • Revenue increased to 140.4 M€ (130.5)
  • EBITDA excluding non-recurring items increased to 15.3 M€ (10.6)
  • EBITDA margin excluding non-recurring items increased to 10.9% (8.1%)
  • Operating cash flow increased to 20.9 M€ (12.5)
  • Net debt/EBITDA decreased to 3.7 (4.3)

January-September 2020

  • Revenue increased to 400.4 M€ (399.6)
  • EBITDA excluding non-recurring items increased to 36.9 M€ (32.2)
  • EBITDA margin excluding non-recurring items increased to 9.2% (8.1%)
  • Operating cash flow increased to 41.8 M€ (30.1)

 

Comments by the CEO

Strengthened trajectory of profitable organic growth

During the third quarter, revenue grew 7.6% and the EBITDA margin increased 2.8pp, all organically. Revenue growth is predominately driven by existing clients while profitability improvements are driven by a combination of increased volume, productivity improvements and continued positive mix shift towards business with higher profitability.

Our sales momentum is strong and we continue to win new contracts. This year’s estimated revenue from new contracts is about 3x compared to last year. In particular, Transcom’s offering to the Commerce & Tech1 sector drives strong growth.

Demand is growing for T:Anywhere, Transcom’s solution for permanent Work-At-Home delivery. T:Anywhere provides an end-to-end solution for digital recruiting, training, onboarding and customer experience operations. It has a strong track record of customer satisfaction and employee satisfaction as well as cost efficiency. Moreover, it complies with all relevant customer service, privacy and security standards. In short, T:Anywhere provides a world-class customer service solution, for all industries in any market.

We continue to develop our digital capabilities and are rewarded for our efforts. Global analyst firm ISG has recognized Transcom as a Global Rising Star and a Europe & UK Leader within digital customer experience.

During the quarter we went live with our new sites in Tuzla, Bosnia Herzegovina, and Cairo, Egypt. Tuzla provides native-level German services, while Cairo provides the benefits of cost efficient multilingual services. We continue the repositioning to cost efficient locations and plan to open several new sites coming quarters.

Transcom has embarked on a journey of profitable growth. The market outlook is strong with growth driven by an accelerated shift from the “walk-in-economy” to digital commerce. Our priorities are client focus and operational excellence, driven by great culture and leadership.

 

Jonas Dahlberg, President & CEO

 

1 Commerce & Logistics has been renamed to Commerce & Tech

 

Q3 2020 Financial Update Call

Transcom will host a conference call on Wednesday, November 11, 2020 at 9:00 CET. The presentation for the call is available via this link and on https://transcom.com/en/investor-relations.

 

Presentation details

Date/Time: Wednesday, November 11, 2020 at 9:00 CET

Online Registration link: http://emea.directeventreg.com/registration/9869364

 

Important note: Please register via the link above at least 5-10 minutes prior the call in order to obtain the dial-in numbers and pin code required for the call.

 

This information is such that Transcom Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on November 11, 2020.

Transcom Q3 2020 report

Press release pdf