IBS Group Reports Operating Results for the Second Quarter and Six Months Ended September 30, 2012
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$67.3 mn, up 17.7% y-o-y and now account for 17.8% of the Group’s
revenues. The progress in Europe and North America is attributable to business growth in
the Software Development segment.
Headcount *
September September Change June 30, Change
Number of employees 30, 2012 30, 2011 y-o-y 2012 q-o-q
Group headcount 8 372 7 817 7.1% 8 363 0.1%
IT Services segment 2 456 2 560 -4.1% 2 526 -2.8%
Software Development
segment 5 568 4 936 12.8% 5 528 0.7%
Corporate and other 348 321 8.4% 309 12.6%
* Source: management accounts.
The Group’s total headcount amounted to 8,372 employees, an increase of 7.1% y-o-y,
mainly due to the expansion of delivery centers in the software development segment. In
the IT Services segment, we disposed Expertek in July 2012 (former IT Services subsidiary
focused on niche solutions for retail business) which further decreased the number of IT
professionals q-o-q to 2,456. No significant change in the segment’s number of employees
is expected before the end of the fiscal year. In the Software Development segment, the
number of employees amounted to 5,568, an increase of 12.8% y-o-y, we expect headcount to
resume growth by the end of the fiscal year.
Debt *
June Change
September September Change 30,
US$ 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)
http://www.ibsgr.com
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.
SOURCE IBS Group Holding Limited
