BIELEFELD, Germany, April 19, 2018 /PRNewswire/ --
- Revenues climb by 6.8% to MEUR 220.1
- Cloud Subscription revenues almost doubled
- EBITA on target at MEUR 7.6 after MEUR 9.2 in previous year
- Forecast for 2018 confirmed: Revenue growth to MEUR 920-930 with EBITA margin of around 5.5%
itelligence AG remains on its growth path, starting the new fiscal year with revenue growth of 6.8% in the first quarter of 2018. Revenues for the first three months of the fiscal year amounted to MEUR 220.1 compared with MEUR 206.1 in the same period of the previous year. This revenue performance was attributable to both organic growth (+3.6%) and newly acquired companies (+3.2%). Earnings before interest, taxes and amortization (EBITA) amounted to MEUR 7.6 after MEUR 9.2 in the previous year. Orders on hand at itelligence AG remained largely unchanged year-on-year, amounting to MEUR 894.3 as of March 31, 2018 compared with MEUR 898.3 as of March 31, 2017.
Norbert Rotter, CEO of itelligence AG: "itelligence has enjoyed a successful start to the new fiscal year with solid revenue growth. We believe there is considerable further growth potential available to us as a leading global SAP partner. In the first quarter, we generated revenue growth of just under 30% in our license business and almost doubled our revenues in the dynamic Cloud Subscription segment. The Western European markets performed especially well in the first quarter of 2018."
In the individual revenue segments, consulting business reported growth of 3.9%, from MEUR 89.3 to MEUR 92.8. In percentage terms, the highest growth rate was recorded by the Cloud Subscription segment, which was established in 2017. Revenues in this segment increased by 92.0% to MEUR 4.8 after MEUR 2.5 in the previous year. The largest segment, Managed Services, also recorded further revenue growth of 5.0%, from MEUR 101.1 to MEUR 106.2. License revenues increased sharply by 29.9% year-on-year, from MEUR 11.7 to MEUR 15.2.
In terms of geographical distribution, the largest segment, DACH, recorded revenue growth of 5.7%, from MEUR 99.7 to MEUR 105.4. The Western Europe segment enjoyed particularly strong growth of 29.3% to MEUR 31.8 after MEUR 24.6 in the previous year.
Revenues in the new structured Northern and Eastern Europe (NEE) segment increased by 9.8%, from MEUR 40.7 to MEUR 44.7. Revenues in the America segment declined by 9.9% to MEUR 32.6 after MEUR 36.2 in the previous year. Finally, the Asia segment recorded revenue growth of 2.9% in the first quarter, from MEUR 3.5 to MEUR 3.6. The Other segment saw revenue growth of 42.9% to MEUR 2.0 after MEUR 1.4 in the previous year.
itelligence AG's key earnings figures developed as follows in the first quarter of 2018: Earnings before interest, taxes and amortization (EBITA) amounted to MEUR 7.6, down 17.4% on the prior-year figure of MEUR 9.2. This resulted in an EBITA margin of 3.5% after 4.5% in the same period of the previous year. Earnings in the first quarter of 2018 were impacted in particular by reorganization costs in the USA in the amount of MEUR 2.
Dr. Michael Dorin, CFO of itelligence AG: "We have started 2018 with the same momentum we enjoyed in the final quarter of the previous year, and we are on track in terms of our earnings performance. At the same time, we intend to work intensively to increase our profitability over the course of this year."
The Management Board is continuing to forecast revenue and earnings growth in the 2018 fiscal year. Revenues are expected to increase to MEUR 920-930 in the current year, while further earnings growth will result in an EBITA margin of around 5.5%.
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itelligence is one of the leading international full-service providers of solutions in support of SAP solutions, employing more than 7,100 highly qualified employees in 25 countries. As a frequently awarded SAP partner, itelligence is an SAP Hybris Gold partner and global value-added reseller. itelligence is an SAP-certified provider of cloud services and an SAP platinum partner. itelligence realizes complex projects in the SAP solution-based environment worldwide. The company's services in support of SAP solutions range from consulting and licensing to application management services and hosting services to proprietary industry-specific solutions. In 2017, itelligence generated total sales of EUR 872.2 million.
33605 Bielefeld / Germany
SOURCE itelligence AG