While it is still doing well, Computacenter is reporting that it is getting harder to make cash in the EU.
The UK-based outfit saw revenue growth in the first quarter despite a large software deal in the same quarter last year creating a tough comparison.
But in an update to the London Stock Exchange, the channel giant said that both sales and profitability were ahead of first quarter 2018, even before taking the acquisitions of FusionStorm and Misco’s Netherlands business into account.
It warned that the outfit’s German business would suffer from one of its largest customers “substantially” reducing its demand for cloud infrastructure, the update said.
However, the UK-based reseller claims that growth among its other German customers “more than compensated” for the expected setback within its German Technology Sourcing business.
Computacenter warned in its full year 2018 report, released last month, that its German business could be affected by “some uncertainties related to the German economy” as well as declining demand for cloud infrastructure from a significant customer.
Computacenter claims that global first quarter revenues and profitability are ahead of expectations and are likely to surpass those posted in the same quarter last year.
Its French business logged one of its best ever quarters, according to Computacenter, while UK revenues saw growth despite a tough compare due to a sizeable one-off software deal in first quarter 2018.
Its US business has grown its revenues year on year, excluding its acquisition of FusionStorm last October, while its smaller European entities saw “positive momentum”.
Computacenter claims that challenging economic conditions in its major markets are not deterring customers from investing in technology.
