IBS Group Reports Operating Results for Q4 and Fiscal Year of 2011
RAMSEY, The Isle of Man, June 5, 2012 /PRNewswire/ –
Please refer to relevant legal information at the end of the document
IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading IT services provider in
Central and Eastern Europe, has announced its preliminary unaudited operating results for
the fourth quarter (1 January – 31 March 2012) and the full year (1 April 2011 – 31 March
2012) of Fiscal Year (FY2011).
Highlights
- Full year FY2011 consolidated revenues rose by 24% y-o-y to US$816.1mn.
Revenues were driven up by the fast growth in both of our business segments - IT
Services and Software Development.
- IT Services segment's full year FY2011 revenues increased by 22% y-o-y to
US$476.5mn on the back of continuing expansion in the Russian IT market.
- Software Development segment revenues were up 37% y-o-y in FY2011, totaling
US$271.1mn as we saw healthy demand for our services driven predominantly by existing
clients.
- We witnessed the most rapid progress in our operations in Europe, where our
FY2011 revenues swelled by 44% y-o-y. In Russia we observed revenues growth of 20%, in
line with the increase of revenues in the IT segment for FY2011.
- The total Group headcount reached 8,225 when we added 870 employees on a net
basis in FY2011.
- The Group gradually followed its risk averse policy of debt reduction, as we
end FY2011 with a total debt of US$44.5mn, down US$13.7mn y-o-y, and net debt of
US$24.2mn, down another US$7.5mn y-o-y.
Consolidated Revenues *
Change Change
Q4
US$, mn Q4 FY2011 FY2010 y-o-y FY2011 FY2010 y-o-y
Consolidated revenues 183.0 152.3 20% 816.1 656.0 24%
IT Services 92.2 82.6 12% 476.5 389.8 22%
Software Development 72.6 53.5 36% 271.1 198.4 37%
Corporate, other and
eliminations 18.2 16.2 12% 68.5 67.8 1%
* Based on preliminary unaudited management accounts; Corporate, other and
eliminations field now includes results previously reported under the Online Software
Delivery segment
- Consolidated revenues for the full year of FY2011 were up 24% y-o-y to
US$816.1mn as the Group continued to capitalize on the surging demand in both of its
segments. In the fourth quarter of FY2011, consolidated revenues increased by 20%
y-o-y to US$183.0mn.
- The IT Services segment revenues for the full year of FY2011 were up 22%
y-o-y and reached US$476.5mn. Increasing revenues in the segment are attributable to
the growth of our business across diversified sectors of the domestic economy. The
segment revenues demonstrated a 12% y-o-y revenue growth in the fourth quarter of
FY2011.
- The Software Development segment revenues for the full year of FY2011 surged
by 37% y-o-y to US$271.1mn. The growth stemmed from the expansion of our current
clients in financial services, automotive & transport, travel & aviation and telecoms
industries, as well as business with prospective clients in technology and financial
services verticals. The segment's revenues were up 36% y-o-y in the fourth quarter of
FY2011.
Consolidated Revenues by Geography *
Change
Share Share in
of of absolute
total total result,
US$, mn FY2011 revenue FY2010 revenue y-o-y
Revenues generated in Russia 556.1 68% 461.5 70% 20%
Revenues generated in Europe 187.9 23% 130.7 20% 44%
Revenues generated in North
America 72.1 9% 63.8 10% 13%
* Based on preliminary unaudited management accounts; customer geography is determined
by billing location
- Revenues from Russian operations reached US$556.1mn in FY2011, a rise of
20% y-o-y. The Group further expanded its footprint on the Russian IT market against a
backdrop of healthy demand for the infrastructure solutions and business applications
systems provided by our IT Services segment.
- Revenues from European operations reached US$187.9mn in FY2011, an increase of
44% y-o-y. Success here can be ascribed to the further generation of business in
Western Europe through our Software Development segment over the year.
- Revenues from North American operations reached US$72.1mn, up 13% y-o-y. The
growth in the region was generated via our Software Development segment.
Group Headcount *
Number of Change Change
employees 31.03.2012 31.12.2011 q-o-q 31.03.2011 y-o-y
Group headcount 8,225 8 334 -1% 7 355 12%
IT Services 2,948 3 121 -6% 3 074 -4%
Software
Development 5,277 5 213 1% 4 281 23%
* IT segment includes personnel of Corporate segment
As of 31 March 2012, the headcount of IBS Group totaled 8,225 employees, a 12%
increase y-o-y. During the last quarter of FY2011 personnel fell by 1%. The decrease in
the number of employees was due to organizational restructuring in the IT Services segment
to streamline effectiveness of business, combined with a seasonal hiring slowdown in the
Software Development segment. The latter is already picking up in the first months of
FY2012 to the levels seen through FY2011.
Debt Position *
Change
US$, mn 31.03.2012 31.12.2011 Change q-o-q 31.03.2011 y-o-y
Total debt 44.5 55.8 -11.3 58.2 -13.7
Short-term debt 18.2 28.2 -10.0 23.1 -4.9
Long-term debt 26.3 27.6 -1.3 35.1 -8.8
Cash and cash
equivalents 20.3 39.2 -18.9 26.5 -6.2
Net debt 24.2 16.6 7.6 31.7 -7.5
* Based on preliminary unaudited management accounts
The company continued to deleverage its balance sheet over the course of the last
year. At the end of FY2011 the company decreased its total debt by US$13.7mn bringing it
to US$44.5mn, and slightly cut cash position by US$6.2mn vs. 31 March 2011. As a result,
net debt position was down by US$7.5mn and amounted to US$24.2mn. In Q4 FY11, the total
debt position decreased by US$11.3mn q-o-q due to the scheduled repayment of debt. The
group remains well-positioned to further decrease its net debt position by the end of
calendar 2012 year.
Comment from President
Anatoly Karachinsky, President of IBS Group, said:”In our view, IBS Group’s
performance remained strong throughout 2011, with a healthy increase of EBITDA margin from
7.2% in FY2010 to high single digits, and both of the Group’s business segments growing
confidently. Capitalizing on its vibrant technological growth over the year, the Group
broadened the range of innovative products and solutions available. Successful large
projects in some of the Group’s core activities for a variety of domestic industries
underpinned the strong growth in the IT Services segment. In the Software Development
segment, revenues rose 37% y-o-y, boosted by the expanded business with existing clients
in financial services, automotive, aviation and telecommunications sectors in Europe and
the US. We note, that in the first months of 2012 both segments of the Group continue to
grow, albeit at slightly lower rates than those experienced throughout the previous year.”
About IBS Group
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, IT
outsourcing, business and IT consulting, 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 8,000 people worldwide.
IBS Group’s Global Depositary Receipts are listed on the Regulated Market (General
Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.DE).
Disclaimer
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.
For more information about IBS Group please visit http://www.ibsgr.com
SOURCE IBS Group Holding Limited
