#Communiqués Financiers

Bagnolet, September 15, 2016

The Board of Directors, which met on September 14, 2016, approved the half-year financial statements for the 2016 financial year.

In €m, as of June 30 S1 2016 S1 2015 Variation
Consolidated turnover 95,41 86,43 + 10,4 %
– Services 91,23 82,28 + 10,9 %
– Softwares 4,18 4,15 + 0,7 %
Employee costs 44,44 39,63 + 12,1 %
External loads 37,08 34,52 + 7,4 %
Allocations to depreciation and provisions (1,78) (1,52) ns
Current operating income
As a % of turnover
10,8 %
10,5 %
+ 12,9 %
Income tax (3,57) (3,31) + 7,6 %
Net income (Group share)
As a % of turnover
7,0 %
6,9 %
+ 11,7 %

Very strong contribution from the Services division

In a global IT services market estimated to grow by 2.6% for 2016 (source Syntec Numérique), Infotel recorded a turnover of €95.41 million, fully organic growth of 10.4% compared to first half of 2015.

The Services division grew by 10.9% to €91.23 million thanks to the ramp-up of several service centers in particular in the Banking/Finance sector (Banque de France, i-BP, IT-CE, BNP Paribas Personal Finance – Cetelem, etc.).

The Software division, at €4.18 million, includes the amount of IBM royalties for €2.39 million.

Improved results and high level of operating profitability

Current operating income amounted to €10.29 million compared to €9.12 million a year earlier, representing an increase of 12.9% and operating profitability of 10.8%.

This performance is linked to the maintenance of a stable level of expenses: personnel expenses represented 46.6% of revenue in the first half of 2016 and subcontracting expenses stood at 33.9%.

The inter-contract rate, still low, was 2.3% over the period.

Net income (Group share) stands at €6.68 million, up 11.7%, which generates a high net margin of 7.0% of turnover.

Solid financial structure

With shareholders’ equity increasing to €65.62 million and no financial debt, the Group’s financial situation is very solid. The Group’s cash flow in the 1st half increased to €42.84 million compared to €33.24 million in the 1st half of 2015. This increase is due to good working capital management.

Outlook 2016

Infotel had set a target of €200 million in revenue by the end of 2016, including external growth over the year. Given the low probability of concluding an acquisition by the end of the year, the objective of €200 million cannot therefore be achieved in 2016.
Since the beginning of the year, the Group has favored a high level of profitability and confirms the continued growth of activity in the second half associated with margin levels equivalent to those of the 1st half of 2016.

Finally, Infotel intends to pursue its acquisition strategy with the search for new targets whose characteristics are in line with the Group’s ambitions.

Next meeting :
Publication of Q3 2016 revenue: October 26, 2016 after market close

About Infotel

Listed on Compartment B of Euronext Paris since January 1999 (Isin code FR0000071797), Infotel is the specialist in large account management systems, from mobile to very large databases (Big Data). At the forefront of technological innovations, Infotel develops its expertise around two complementary areas of expertise: IT services and software publishing. With a turnover of €175 million in 2015, Infotel employs nearly 2,000 people.

Michel Koutchouk Co-founder