During the first quarter of 2017 (1Q17) Reditus pursued the internal reorganization begun in the last quarter of 2016, following the strategic repositioning of the Group after the sale of the subsidiary ROFF, adjusting its spending structure to the new reality of the Group and creating the conditions for the development of integrated, innovative and higher added value offers, in order to follow the business plan based on the development of its core activities and the profitability of its business.

 

The following 1st Quarter 2017 (1Q17) results are compared with the restated values for the 1st Quarter 2016 (1Q16).

 

Operating Revenues reached 10,2 million Euros on 1Q17, or a 15.3% decrease from 1Q16.

 

In the period under review, there has been a Revenue contraction in relation to the same period last year, mainly in the BPO segment of the Client Services area, reflecting the conclusion of two large contracts that the Group has not yet been able to substitute for others of equivalent value, due to very aggressive and competitive market conditions.

 

Nevertheless, Reditus was able to obtain in 1Q17 new business from its client portfolio and to renew existing contracts in the domestic market, in the IT Consulting and IT Outsourcing segments.

 

In the International area and despite a slight Revenue decrease of 2% over 1Q16, the weight relative to the Group's overall Revenue increased from 32% to 37% in 1Q17.

 

The Group expects a positive growth during the forthcoming months, both in the domestic market and especially with the start of several projects in the international market, and will actively continue to pursue new opportunities in Nearshore projects.

 

EBITDA reached 1,3 million Euros, equivalent to an EBITDA margin of 12.7% or 3.5 pp below the 16.2% margin reached in the same period of last year.

 

Consolidated Net Profit amounted to 109 thousand Euros, a decrease of 44.5% over the same period of the previous year.