MUNICH (dpa-AFX) - IT service provider Cancom was boosted in the third quarter by its latest acquisition. Sales and earnings increased. The SDax group confirmed its targets for the current year on Thursday in Munich. The share price rose by around ten percent in morning trading.

However, the share price has fallen significantly since its high for the year to date of 35.10 euros at the beginning of March. Most recently, the share price was 26.90 euros, slightly less than at the turn of the year.

Turnover climbed by a good 26 percent year-on-year to 415.8 million euros, as the company also announced. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by a good fifth to 35 million euros. The bottom line for shareholders was a profit of just under 10.4 million euros. In the same period last year, the IT service provider reported 7.1 million euros.

"The course of business in the third quarter confirms that we are right with our current outlook and that the acquisition of K-Businesscom will strengthen the Cancom Group in the long term," said CEO Rüdiger Rath according to the press release.

For the fourth quarter, the Executive Board expects the seasonal upturn in the hardware business and continued good demand in the service environment. The digitalization trend and the associated demand for IT infrastructure, software and IT services remains intact in all IT markets relevant to the company. Digitization in companies and organizations, in the healthcare and education sectors as well as in administration will remain an issue, even if investments, especially in IT hardware, are being postponed in the current economic environment.

In the summer quarter, management cut its annual targets due to weaker demand, which it had only raised at the end of May following the takeover of the Austrian company KBC. Accordingly, turnover is expected to rise to between 1.52 and 1.58 billion euros in 2023. For earnings before interest, taxes, depreciation and amortization (EBITDA), the Group management is forecasting 116 to 126 million euros, compared to just under 105 million euros in the previous year./mne/tav/stk