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Infotel — Earnings Release 2017
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]
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