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Econocom Group SE — Earnings Release 2018
Jul 19, 2018
3943_iss_2018-07-19_607d8b55-17b4-4862-a59c-e86488fc4fe6.pdf
Earnings Release
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1 Before amortisation of intangible assets from acquisitions. Consolidated unaudited data
The decision to speed up the transformation of the Group and particularly of Services in France led the Group to recognise non-recurring expenses to the amount of some twenty million euros for the first half.
NET DEBT CONTAINED AND FINANCIAL SOLIDITY REAFFIRMED
The Group's net debt stands at €395 million, in line with expectations, and reflecting the usual seasonality of business.
The Group has substantial and diversified financing sources, such as convertible bonds (EuroPP, Schuldschein and OCEANE), as well as more than €230 million of unused lines of credit at 30th June 2018, €140 million of which do not have restrictive clauses.
SHARE BUYBACK PROGRAMME
When it met on 17th July 2018, the Board of Directors reiterated its complete confidence in the Group's future prospects.
Given Econocom's strong fundamentals and healthy financial situation, the Board of Directors has mandated its Chairman, Jean-Louis Bouchard, to buy back treasury shares of up to €30 million, i.e. around 5% of the Group's share capital. This programme should be implemented over the next ten months, depending on market conditions.
2018 FULL-YEAR GUIDANCE
In light of the weaker than expected first half, the Group adjusted its full-year projections on 5th July and now expects Recurring Operating Profit1 of €120 million for 2018.
Robert Bouchard, CEO of Econocom, said: "After completing the Mutation 2013-2017 strategic plan, business got off to a slower start than expected in the first half of 2018. We are all focusing our efforts on reaching our H2 targets, in a supportive market. When we present our final first-half results on 6th September, we will give details of the measures implemented by the Group to improve profitability and maintain growth in the short and medium term."
Next press releases:
- Econocom will present its complete first-year results on 6th September 2018 (press release issued after the close of trading on 5th September).
- The third-quarter revenue statement will be released after the close of trading on 18th October 2018.
ABOUT ECONOCOM
FOR FURTHER INFORMATION
Econocom finances and accelerates companies' digital transformation. With more than 10,700 employees in 19 countries and revenue of €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. Econocom has adopted European company status (Societas Europaea). The Econocom Group share has been listed on Euronext Brussels since 1986. It is part of the BEL Mid and Tél. +33 6 32 92 24 94 Family Business indices.
www.econocom.com Follow us on Twitter Investor and shareholder relations: [email protected]