KOBLENZ (dpa-AFX) - The software provider Compugroup has unexpectedly increased its sales in the first quarter thanks to the advancing digitalization in the healthcare sector and also due to acquisitions. However, the business hardly became more lucrative for the Koblenz-based company, which specializes in medical practices and hospitals - the corresponding margin increased only slightly at the start of the year. According to a statement on Wednesday, Group CEO Michael Rauch nevertheless spoke of a successful start to the year. And he is sticking to his goals: Management wants to reap the rewards of its years of heavy investment and increase profitability this year.

Compugroup boosted its sales by 16 percent to 291 million euros in the first quarter, according to the company, which is listed on the small-cap index SDax. At eleven percent, organic growth was well above the targets for the year as a whole, with profits rising across all business areas. The most significant jump in sales was achieved by the data networking division. This business unit continues to benefit from the current work on the telematics infrastructure, which is intended to promote digitization in the healthcare sector.

On the stock exchange, the shares temporarily fell by almost 3 percent, continuing the downturn that began at the high for the year in mid-April. Thus, the paper was temporarily back at the level of the end of March, but was able to limit the losses by midday. Since the turn of the year, it also still has a healthy balance of a good 30 percent price gain.

While investors turned their backs on Compugroup in midweek, analyst Yannik Siering from investment bank Stifel had words of praise for the current figures: he spoke of "high growth across the board" and that the software provider's results were better than expected.

At the start of the year, earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted for certain special effects climbed by around 16 percent to a good 59.9 million euros - almost in line with sales. The corresponding margin therefore increased by 0.1 percentage points to 20.6 percent. Analysts had expected slightly higher profitability in the first quarter.

In addition, the Group suffered a drop in bottom-line profits due to higher interest expense and currency losses. In the end, shareholders were left with a surplus of just under 14.4 million euros, more than a fifth less than the 18.2 million euros a year ago.

The Management Board believes it is on track to achieve its targets for the year. Among other things, the Group is optimistic about the development of its business with hospitals, where order intake continued to rise in the past quarter due to the government initiative for modernization and digitization in hospitals. Here, Compugroup now expects higher sales in the coming years than previously.

According to the confirmed group forecast, Compugroup's total revenue should increase organically by five percent this year, and adjusted operating profit should come out in a range of 260 to 300 million, compared with 234 million for 2022. This would result in an adjusted operating margin of at least just under 22 percent this year, compared with 21 percent last year.

Just in April, the company also acquired a majority stake in patient portal provider MDoc./tav/lew/mis