Reditus’ EBITDA increases 50.5% in first nine months of 2017
- Operating Revenue of EUR 31,5 million (vs. EUR 33,9 million in 9M16)
- EBITDA of EUR 3,9 million (vs. EUR 2,6 million in 9M16)
- EBITDA margin 12.5% (vs. 7.7% in 9M16)
- Income from Continued Operations of EUR 92 thousand (vs. negative EUR 1,4 million in 9M16)
- International Sales represent 40% of total (vs. 35% in 9M16)
1. Summary of the Activity
The first nine months of 2017 (9M17) show a persistent good performance of the Reditus Group and represent a significant improvement over the same period in 2016 (9M16).
The successful strategy followed by the Group subsequent to the sale of the former subsidiary ROFF, comprising an internal reorganization and a focus on core activities - centred on innovative and higher value added offers – have, together with on-going efforts on rationalization of operating costs and overheads, afforded an increased profitability of the business and explains the positive evolution of the results for the first nine months of the year (9M17).
The Operating Revenue shows a 6.9% decrease to 31,5 million euros - compared to 33,9 million euros in the same period – the improvement in contribution margins of the different Group operations lead to a 50.5% YOY Group EBITDA increase.
The revenue contraction derives mainly from the BPO segment of the Client Services sector, and reflects the term of a large contract from the previous year and which the Group has consistently been replacing for others of equivalent value and increased profitability. We were as a result able to obtain several contracts from within our installed customer base, both new and renewals of existing contracts, and also to acquire new clients, all of which will contribute to better results of the BPO segment through the coming periods.
The IT Consulting and IT Outsourcing sectors were the main contributors to the Group's improved results, showing positive growth in both Revenues and EBITDA, with new clients and renewals of existing contracts in the domestic market.
Revenue for the International sector registered a growth of 5.3% in 9M17, increasing its weight from 35% to 40% relative to the Group's overall Revenue. The strategic commitment to the African market, with a focus on the three geographies where the Group has subsidiaries namely Angola, Mozambique and Equatorial Guinea, has led to a growth in business volume due to the beginning of new projects and to the continuation of those where the Group has already an on-going history.
The Group expects to continue actively searching during the coming months for new international market opportunities in those geographies, as well as for Nearshore projects, with the aim at consolidating its business growth.
EBITDA reached 3,9 million Euros, equivalent to an EBITDA margin of 12.5%, or 4.8 pp above the 7.7% margin reached in the same period of last year.
Net Income from Continued Operations amounted to 92 thousand Euros, an increase of 1,5 million Euros over the same period of the previous year, when a negative value of 1,4 million Euros had been reached.