DORTMUND (dpa-AFX) - IT service provider Adesso has started the new year with a jump in sales thanks to the ongoing digitization trend. However, a high level of sick leave, higher personnel costs and delays in capacity utilization weighed on profitability in the first three months, as the SDax-listed company announced in Dortmund on Friday evening after close of business. Earnings fell significantly year-on-year. However, Adesso's management around CEO Michael Kenfenheuer stuck to its targets for 2023. The presentation of the figures went down badly on the stock market.

The share fell by almost eleven percent in early trading on Monday, then stabilized at minus seven percent at 127.40 euros. One trader pointed out that "even despite stronger-than-expected earnings" the earnings performance had been very weak. This weighed on the share price, even if the annual targets were maintained.

In the current year, the share has thus lost almost a good three percent in value. The price is well below the high for the year of a good 160 euros, which the share reached in mid-January. The share price is already a long way from the high of 228.50 euros reached in March last year shortly after the company's promotion to the SDax. At that time, increased IT demand with the onset of the Corona pandemic had boosted the papers.

According to preliminary calculations, sales in the first quarter increased by almost a third to 276.2 million euros. The cyber attack on IT discovered in January had no significant impact, the company said. The company accelerated its workforce expansion sharply, which weighed on profitability. Operating profit (Ebitda) fell 36 percent to 17.9 million euros compared to the same period last year, which benefited from higher license sales and other operating income.

Group earnings plummeted to 2.0 million euros. A year earlier, Adesso had earned 12.5 million. The IT service provider plans to publish its full quarterly report on May 15.

Despite the lower-than-expected earnings development, the outlook for the rest of the fiscal year remains positive, the company added. A normalization of the sickness rate and an increase in capacity utilization are expected. The order backlog is at a record level.

On this basis, the original forecast for 2023 of more than one billion euros in sales and earnings before interest, taxes, depreciation and amortization (Ebitda) of 100 to 110 million euros was confirmed. In 2022, Adesso had reported sales of just over 900 million euros and an operating result of just under 93 million euros.

Adesso is one of the largest German IT service providers. Adesso's customers include authorities such as the Federal Criminal Police Office (BKA), the financial supervisory authority Bafin, the Bundesbank, and companies such as BMW, RWE and Eon./mne/jha/lew/mis