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Infotel

Earnings Release Sep 20, 2017

1439_iss_2017-09-20_d81d9a8a-f5fb-40dc-840c-2e5942a0b7b3.pdf

Earnings Release

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Euronext B – ISIN: FR0000071797 Reuters: ETOF.PA – Bloomberg: INF FP

Press release Bagnolet, September 20, 2017

Results for the first half of 2017: Growth and profitability

- Revenue: €103.3m, up 8.3%

- Current operating income: €11.2m, up 8.6%

- Net income, Group share: €7.1m, up 6.0%

The Board of Directors, in its meeting of September 20, 2017, approved the financial statements for the first half of 2017. They were subject to a limited review by the Statutory Auditors. The first half of 2017 financial report is available on the Company's website (www.infotel.com).

In €m, at June 30
(audited accounts)
H1 2017 H1 2016 Change
Consolidated revenue 103.3 95.4 +8.3%
Services 99.0 91.2 +8.5%
Software 4.3 4.2 +4.0%
Payroll expenses (48.0) (44.4) +8.1%
External expenses (40.1) (37.1) +8.1%
Depreciation, amortization and provisions (1.8) (1.8) ns
Current operating income 11.2 10.3 +8.6%
as a % of revenue 10.8% 10.8%
Operating income 11.1 10.2 +8.7%
Income tax (4.0) (3.6) +10.8%
Net income, Group share 7.1 6.7 +6.0%
As a % of revenue 6.9% 7.0%

A satisfactory first half of 2017

For the first half of 2017, Infotel posted revenues of €103.3 million, which represents organic growth of 8.3%, in a global IT services market that grew by 3% (source: Syntec Numérique).

The Services division generated revenues of €99.0 million, an increase of 8.5%, thanks in particular to the solid trend in digital transformation projects across all sectors.

The Software division generated revenues of €4.3 million, an increase of 4.0% for the period, including the IBM royalties in the amount of €2.7 million.

Solid increase in interim results

Current operating income came out at €11.2 million (+8.6%), for a first-half 2017 current operating margin of 10.8%.

Expenses were handled at 79.6% of revenues (compared with 80.4% in the first half of 2016), of which 46.5% of payroll expenses. The Group adopted an active hiring policy in order to attract new talent, with 216 new employees onboarded, despite an increasingly competitive backdrop.

The inter-contracts rate remained under control at 2.1% for the first half of the year.

Net income, Group share totalled €7.1 million, an increase of 6.0%, for a net margin of 6.9%.

Financial structure remains solid

Shareholders' equity increased to €72.9 million and the Group has no financial debt. The Group's cash position also improved, to €46.7 million vs. €42.8 million in the first half of 2016.

Confidence for 2017

The Group confirms growth of the same order as in the first half of the year, with a relative uncertainty on the ease of recruitment.

In the longer term, Infotel aims to double in size in the next five years with the help of acquisitions.

Upcoming events:

Publication of Q3 2017 revenue: October 25, 2017 after market close.

About Infotel

Listed on Compartment B of Euronext Paris since January 1999 (ISIN code FR0000071797), Infotel specialises in large-account information management systems, from mobile to very large volume databases (Big Data). Operating at the forefront of technological innovation, Infotel develops its expertise across two complementary divisions: IT services and software publishing. With €190.6 million in turnover in 2016, Infotel has a staff of over 2,000.

Contacts

Michel Koutchouk Financial Communication Vice President Ghislaine Gasparetto Tel.: +33 (0)1 48 97 38 38 Tel.: +33 (0)1 56 88 11 11 [email protected] [email protected]

Infotel Actifin

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