IBS Group Reports Operating Results for Q4 and Fiscal Year of 2011
RAMSEY, The Isle of Man, June 5, 2012 /PRNewswire/ --
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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).
- 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).
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