|By PR Newswire||
|November 29, 2012 05:01 AM EST||
RAMSEY, the Isle of Man, November 29, 2012 /PRNewswire/ --
Please refer to the relevant legal information at the end of this document
IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software development and IT services provider in Central and Eastern Europe, today announced its preliminary unaudited operating results for the second quarter and six months ended September 30, 2012 (2Q and 1H FYE March 31, 2013) .
1H FYE March 31, 2013 highlights
- Consolidated revenues totaled US$378.0 mn, a 6.0% increase y-o-y, driven by a pickup in activity in both segments.
- Revenues in the IT Services segment increased by 1.8% in US$ terms and 12.4% in Russian ruble terms, whereas revenues in the Software Development segment saw a 13.5% increase in US$ terms.
- Revenues generated in Europe and North America amounted to US$137.4 mn, and now account for 36.3% of consolidated Group revenues against 34% a year ago.
- Total headcount rose to 8,372 employees, an increase of 7.1% y-o-y; mostly due to an increase of IT professionals in the Software Development segment.
- Total debt amounted to US$67.4 mn, a decline of US$4.3 mn y-o-y; the net debt position didn't change significantly from the previous year.
- Consolidated revenues growth guidance for FYE March 31, 2013 has been updated to be in the range of 9-13%.
Consolidated revenues by segment *
2Q 1H 1H FYE FYE FYE 2Q FYE March March March March 31, 31, Change 31, 31, Change US$ mn 2013 2012 y-o-y 2013 2012 y-o-y Consolidated revenues 212.6 180.0 18.1% 378.0 356.6 6.0% IT Services segment 122.3 97.7 25.2% 200.8 197.3 1.8% IT Services segment, 2 6 5 RUB mn 3 876.9 997.0 29.4% 376.8 672.3 12.4% Software Development segment 74.1 66.1 12.1% 145.1 127.9 13.5% Corporate, eliminations, and other 16.2 16.2 0% 32.1 31.4 2.2%
* Source: management accounts.
Consolidated revenues for the second quarter of FYE March 31, 2013 amounted to US$212.6 mn, an increase of 18.1% y-o-y driven by solid performance in both segments. Consolidated revenues for the first half of FYE March 31, 2013 came to US$378 mn, an increase of 6.0% y-o-y.
IT Services segment revenues for the first half of FYE March 31, 2013 amounted to US$200.8 mn, representing an increase of 1.8% y-o-y. Ruble revenues for the same period totaled RUB 6,376.8 mn, up 12.4% y-o-y. OOO Borlas Group's revenues, disposed in February 2012, amounted US$18.9 mn in the first half of FYE March 31, 2012. Adjusted to account for the disposal of OOO Borlas Group, the segment's revenues in Russian rubles increased by 24.4% y-o-y in the first half of FYE March 31, 2013. The increased number of IT infrastructure projects was the key driver behind revenue growth in the segment during the reported period.
Software Development segment revenues during the first half of FYE March 31, 2013 rose to US$145.1 mn, an increase of 13.5% y-o-y. Automotive&transport and financial services verticals showed the fastest growth in the reported period. The segment's revenues in constant currency* increased by 17.5% and 19.6% y-o-y respectively in the second quarter and first half of FYE March 31, 2013.
* Constant currency revenues are calculated based on a weighted average of actual daily exchange rates for previous periods.
Consolidated revenues by geography *
1H FYE Share Share Change March of 1H FYE of in 31, total March 31, total absolute US$ mn 2013 revenue 2012 revenue result Revenues generated in Russia and the CIS 240.6 63.7% 235.3 66.0% 2.3% Revenues generated in Europe 70.1 18.5% 64.1 18.0% 9.4% Revenues generated in North America 67.3 17.8% 57.2 16.0% 17.7%
* Source: management accounts, customer geography determined based on the location of clients' key decision maker.
Revenues from Russian operations totaled US$240.6 mn, representing an increase of 2.3% y-o-y. During the same period, revenues generated in Europe totaled US$70.1 mn, an increase of 9.4% y-o-y, and now account for 18.5% of the Group's revenues. Revenues in North America rose to US$67.3 mn, up 17.7% y-o-y and now account for 17.8% of the Group's revenues. The progress in Europe and North America is attributable to business growth in the Software Development segment.
September September Change June 30, Change Number of employees 30, 2012 30, 2011 y-o-y 2012 q-o-q Group headcount 8 372 7 817 7.1% 8 363 0.1% IT Services segment 2 456 2 560 -4.1% 2 526 -2.8% Software Development segment 5 568 4 936 12.8% 5 528 0.7% Corporate and other 348 321 8.4% 309 12.6%
* Source: management accounts.
The Group's total headcount amounted to 8,372 employees, an increase of 7.1% y-o-y, mainly due to the expansion of delivery centers in the software development segment. In the IT Services segment, we disposed Expertek in July 2012 (former IT Services subsidiary focused on niche solutions for retail business) which further decreased the number of IT professionals q-o-q to 2,456. No significant change in the segment's number of employees is expected before the end of the fiscal year. In the Software Development segment, the number of employees amounted to 5,568, an increase of 12.8% y-o-y, we expect headcount to resume growth by the end of the fiscal year.
June Change September September Change 30, US$ mn 30, 2012 30, 2011 y-o-y 2012 q-o-q Total debt 67.4 71.7 -4.3 62.4 5.0 Current debt 45.8 48.0 -2.2 42.0 3.8 Non-current debt 21.6 23.7 -2.1 20.4 1.2 Net debt 53.7 53.0 0.7 40.9 12.8
* Source: management accounts.
The Group's total debt decreased by US$4.3 mn y-o-y to US$67.4 mn. Over the last quarter the Group's debt position increased by US$5.0 mn, and the net debt position increased by US$12.8 mn - both are attributable to the short-term seasonal working capital financing of IT Services segment.
Full year revenues outlook
We have updated our outlook for the Group's consolidated revenues growth, which is now expected to be in the range of 9-13% in USD terms. In the IT Services segment revenues growth is expected to be in the range of 6-10% in US$ terms, and we add revenues growth outlook for the segment in ruble Russian terms to be in the range of 13-17%. In the Software Development segment we expect revenues growth to be in the range of 16-21% in US$ terms.
Anatoly Karachinsky, President of IBS Group commented,
"IBS Group has met its targets and performed according to expectations in the preliminary forecasts for the first half of the year. As such, we can view these results as positive. This year has brought robust growth in the IT Services segment. Turnover in rubles for the segment has grown by more than 24% y-o-y, after factoring in the disposal of part of the business last year. The growth in this segment mainly stems from our success in bringing new solutions to the Russian market during implementation of IT infrastructure projects, including cloud technologies and Big Data. The Software Development segment has also grown rapidly owing to our continuing success in financial and automotive verticals. Overall, the outcomes have been affected by the global economic instability, especially fluctuations in the currency markets. This is reflected in our updated growth forecasts of 9-13% for the Group's turnover in the current financial year."
About IBS Group Holding Limited
IBS Group is a leading software development and IT services provider in Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development and IT services outsourcing, IT infrastructure and business applications implementation. IBS Group has business operations in Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA, Vietnam and Singapore. IBS Group employs more than 8,300 people worldwide. In the year ended March 31, 2012, the Group reported US GAAP consolidated revenues of US$816.3 million. IBS Group's Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)
The information contained in this release is not for publication, distribution or release, directly or indirectly, in the United States of America (including its territories and possessions, any states of the United States and the District of Columbia) or any other jurisdiction where such distribution is unlawful. Such release does not constitute an offer for the sale of securities in the United States of America, Canada, Australia, Japan or in any other jurisdiction in which an offer is subject to legal restrictions.
The information communicated in this document contains certain statements that are or may be projections or forward looking. These statements typically contain the words "anticipate", "believe", "intend", "estimate", "expect", "plan", "project" and words of similar meaning. By their nature, forward-looking statements are not statements of historical fact and reflect the current assessments, views, assumptions and beliefs made by the Company's management according to the information available at the time made about future events, operating performance, financial condition, business strategy, the Company's plans and objectives for future operations and the industry in which the Company operates. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any of which can lead to the actual results of operations, profitability, performance, profits or achievements of the Company to be materially different from the results of operations, profitability, performance, profits or achievements of the Company expressed or implied by these forward-looking statements. Factors that could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company may include, among others, general economic and competitive environment conditions in the markets in which the Company operates as well as many other risks affecting the Company and its operations. In view of these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements.
The Company undertakes no obligation to review, update, amend or revise any of its forward-looking statements, whether as a result of new information, future events or developments or otherwise, or to reflect actual results, changes in assumptions or changes in factors affecting these statements. There may be additional material risks that are currently not considered to be material or of which the Company and its advisors or representatives are unaware. All subsequent written and oral forward-looking statements attributable to the Company, and those acting on its behalf, are expressly qualified in their entirety by the foregoing.
- "All It Took Was One E-Mail to Larry," Says Former eBay Research Director As He Moves to Google
- Google Ramps Up Its Mobile Reach: Launches "Mobile Web Search"
- VoIP Update: Yahoo! Buys DialPad
- Ericsson + Napster = World's First "Wireless Digital Music" Brand
- SYS-CON i-Technology Podcast August 30, 2005
- Free Guest Passes for the SOA World Conference & Expo in NYC
- A Flair for Food - Health-Conscious Cooking Is This Chef's Cup Of Tea
- Sony PSP May Feature Porn
- Kapow Helps Seiko UK, Provides SMS Text-Alert Services
- South Korea is World's Largest Phisher
- Will the Mac OS Now Be Offered by Dell?
- UK Targeted for Trojan Attacks