Results for the first half of 2017: Growth and profitability

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%

Bagnolet, September 20, 2017

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).

€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
- as a % of turnover
11.2
10.8%
10.3
10.8%
+8.6%
Operating income 11.1 10.2 +8.7%
Income tax (4.0) (3.6) +10.8%
Net income, Group share
- as a % of turnover
7.1
6.9%
6.7
7.0%
+6.0%

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 event:
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 is the Specialist of large accounts information management systems, from mobile to very large volume databases (Big Data). At the forefront of technological innovations, Infotel develops its expertise around two complementary poles: computer services and software editing. With over €190.6 million turnover in 2016 Infotel has a staff of over 2,000.