Transcom Holding AB (publ): Year-end-report 2020

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Helene Ruda Feb 17th, 2021

Transcom Holding AB (publ): Year-end-report 2020


Fourth quarter 2020 highlights

  • Revenue increased to 157.4 M€ (141.8)
  • EBITDA excluding non-recurring items increased to 19.7 M€ (16.6)
  • EBITDA margin excluding non-recurring items increased to 12.5% (11.7%)
  • Operating cash flow amounted to 8.5 M€ (21.2)
  • Net debt/EBITDA decreased to 3.6 (4.2)

January-December 2020

  • Revenue increased to 557.8 M€ (541.5)
  • EBITDA excluding non-recurring items increased to 56.6 M€ (48.8)
  • EBITDA margin excluding non-recurring items increased to 10.2% (9.0%)
  • Operating cash flow amounted to 50.3 M€ (51.4)

Comments by the CEO

Ending the year with strong and profitable growth

During the fourth quarter, revenue grew 11% and the EBITDA margin increased 0.8pp, all organically. Revenue growth is predominately driven by existing clients in the Commerce & Tech sector. Profitability improvements are driven by increased volumes, increased productivity, a continued positive mix shift towards more profitable clients and an increase in near/offshore delivery.

Our sales momentum continues to be strong. Revenue from new contracts during 2020 amounted to 3x compared to 2019 and several new contracts were closed at the end of the year. Recent contracts include helping to fight the pandemic by operating COVID hotlines for the German and Dutch governments as well supporting Pfizer in Italy with the distribution of COVID-19 vaccine. 

During Q4, we continued our near/offshore expansion by announcing three new locations: Bogota in Colombia for the North American and Spanish markets, Zenica in Bosnia Herzegovina for the German market and Malaga in Spain for the Nordic and Dutch markets. The new sites are expected to be ready for clients Q1-Q2.

Transcom is leading the Work-At-Home revolution. We continue to experience strong demand for T:Anywhere, our WAH-solution providing a fully digital recruiting, training and operating environment. And in January, Transcom was listed as a top 10 remote work company in North America.

2020 was a year marked by the global pandemic. With our mission to stay safe and keep our clients in business, more than 50% of our staff worked from home during the pandemic. At the same time, we turned to growth and increased our EBITDA margin 1.2pp to 10.2% for the full year.

Transcom has a strong momentum and our strategy is clear. We are going for profitable growth through client focus and operational excellence, driven by great culture and leadership. And we will strengthen our digital offering, increase our near/offshore delivery and shift towards fast growing and profitable customer segments.

Jonas Dahlberg, President & CEO

 

Q4 2020 Financial Update Call

Transcom will host a conference call on Wednesday, February 17, 2021 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, February 17, 2021 at 9:00 CET

Online Registration link:  http://emea.directeventreg.com/registration/3358027

 

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 February 17, 2021.

 

Q4 2020 report

Press release pdf