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Econocom Group SE — Earnings Release 2016
Oct 14, 2016
3943_10-q_2016-10-14_f30530c1-26a7-43f0-892f-8678a48a25e6.pdf
Earnings Release
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ECONOCOM PRESS RELEASE
REVENUE FOR NINE MONTHS STANDS AT €1,735 MILLION, UP 9.5%, 6.5% OF WHICH IS ORGANIC GROWTH
Revenue for nine months
Unaudited consolidated data in € millions
SHARP INCREASE IN REVENUE FOR THE FIRST NINE MONTHS AND AN ACCELERATION OF ORGANIC GROWTH IN THE THIRD QUARTER
Econocom reported revenue of €523 million for the third quarter of 2016 and €1,735 million for the nine‑month period, i.e. a 9.5% rise compared with revenue for the same period last year (€1,585 million) and organic growth of 6.5%, (compared with 5.1% for the first half of 2016).
All the group's businesses contributed to this strong growth, which was driven by the dynamic digital transformation market and accelerated by the synergies between the group's three business lines and selective investments made in high‑growth segments, such as security, web & mobile apps, digital solutions and digital transformation consulting.
The Econocom satellites thus contributed €166 million to consolidated revenue for the nine‑month period, an increase of 61.4%, 8.2% of which is organic.
For the first nine months of the year:
- Technology Management & Financing continued its strong growth trend, posting revenue of €829 million over nine months, up 8.1%, 7.9% of which is organic.
- Services reported revenue of €578 million, i.e. an 11.9% rise and organic growth of 4.2%
- Products & Solutions posted revenue of €328 million, an 8.9% increase, 7.3% of which is organic.
CONTINUING TO BUY BACK ORNANE CONVERTIBLE BONDS IN ORDER TO MANAGE DILUTION AND OPTIMISE FINANCING CONDITIONS
Since June 2016 Econocom has bought back 3,520,370 ORNANE convertible bonds maturing in 2019, i.e. 21.3% of the total number of bonds issued in January 2014.
The group currently holds 4,491,834 own shares (excluding liquidity contracts), i.e. 4.0% of the share capital. Based on the share price on 30 September, these shares represented €60 million.
CONFIRMATION OF THE 2016 GUIDANCE AND THE TARGETS OF THE MUTATION 2017 STRATEGIC PLAN
The good performances for the first nine months of the year have allowed the group to confirm:
- Its 2016 guidance: organic growth above the market rate, a double-digit rise in recurring operating profit and another increase in net earnings per share.
- The targets of the Mutation strategic plan by 2017: €3 billion revenue and €150 million recurring operating profit. The group expects to reach its 2017 recurring operating profit target without making any significant acquisitions.
The 2016 full-year results will be published after the close of trading on 23 February 2017.
To speed up the spread of digital progress within organisations, Econocom has launched the "Digital for All, Now!" movement. Join us: www.digitalforallnow.com – #digitalforallnow
ABOUT ECONOCOM
Econocom designs, finances and oversees companies' digital transformation. With over 9,000 employees in 19 countries and revenue in excess of €2.3 billion, Econocom has all the requisite abilities to ensure the successful implementation of large-scale digital projects: consulting, sourcing and technology management & financing of digital assets, infrastructure, application and business solution services, and project financing. The Econocom Group share (BE0974266950– ECONB) hasbeen listed on the Euronext NYSE in Brussels since 1986 and is part of the BelMid and Tech40 indices.
FOR FURTHER INFORMATION:
www.econocom.com Follow us on Twitter: https://twitter.com/econocom Investor and shareholder relations: [email protected] PR contact: [email protected]