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Econocom Group SE — Earnings Release 2015
Jan 18, 2016
3943_iss_2016-01-18_1b947d11-3c16-4542-9a35-a57c5c5e2cbf.PDF
Earnings Release
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REGULATED INFORMATION 18 January 2016
2015 preliminary results
Very strong performance in 2015 for Econocom: the group achieves its financial guidance and confirms the ambitions of its Mutation 2017 strategic plan
Recurring operating
profit (in € millions)1
* Unaudited
Around six months behind the schedule initially announced in 2013, the successful integration of Osiatis has yielded the positive results expected:
- A 10% rise in full-year revenue and acceleration of organic growth across all business lines;
- Recurring operating profit increased more than 20% to over €115 million1 ;
- A sharp rise in net earnings per share.
10% rise in full-year revenue and acceleration of organic growth across all business lines
In 2015 Econocom posted revenue of just over €2.3 billion, up 10% compared with the previous year. This rise in revenue is the result of the success of Econocom's positioning in the digital transformation of organisations, strong synergies between its three core businesses and the lively business dynamic of its satellites, one of which – Digital Dimension – already contributed over €105 million in 2015.
Organic growth also increased substantially in 2015, exceeding 7%.
All the group's business lines contributed to the rise in revenue and posted organic growth:
- . Technology Management & Financing reported full-year revenue of €1,150 million (up 10%);
- . Services achieved revenue of €730 million in 2015 (up 10%);
- . Products & Solutions posted revenue of €435 million for the year (up 13%).
Recurring operating profit rises more than 20% to over €115 million1
The group's operational profitability reported strong growth, driven by the healthy business trend in 2015, the success of new multi-business line offerings and growing synergies which will be fully effective in 2016.
1 Before amortisation of the ECS customer portfolio and the Osiatis brand
A sharp rise in net earnings per share
These good operational performances, combined with low exceptional expenses and the lack of dilution for the shareholders led to a strong rise in net earnings per share.
Financial solidity and continuing investments for the future
On 31 December 2015, the group's net book debt was less than €200 million, so well under control and in line with expectations. On the same date, the group benefited from high levels of cash, with net cash at bank amounting to €140 million.
Econocom focused its investments on sectors with strong growth potential, the most recent of which was a majority stake, signed in December 2015, in Caverin Solutions (€15 million revenue in the digital multimedia solutions market). Econocom will now have a complete offering in Spain, one of the group's five priority countries (i.e. Belgium, the Netherlands, Spain, Italy and France).
2015 guidance achieved and the ambitions of the 2017 Mutation plan confirmed
These very good overall performances are a testament to the solidity of Econocom's multi-business line economic model and the success of its mixed growth strategy. The group confirms its targets for 2017, i.e. €150 million in recurring operating profit and revenue of €3 billion.
The audited full-year results will be published after the close of trading on 1st March 2016.
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) has been 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]