IBS Group Announces its Preliminary Results for 2009 Financial Year
MOSCOW, Russia, June 21, 2010 /PRNewswire-FirstCall/ -- IBS Group Holding Limited (hereinafter the "Group" or "IBS Group") announces its preliminary US GAAP results for 2009 financial year (April 1, 2009 - March 31, 2010). The Group expects to announce its audited US GAAP results for 2009 financial year in August - September 2010.
$ million, US GAAP FY'2009 FY'2008 FY'2009 vs. FY'2008 Consolidated revenue* 504.5 656.7 -23% IT Services 310.0 472.2 -34% (IBS IT Services) Software Development 149.0 119.0 +25% (Luxoft) Online Software Delivery 46.5 53.2 -13% (Softkey) 36.7 26.2 +40% OIBDA** 7.3% 4.0 - OIBDA margin Note: * Revenue for both periods (FY'2008 and FY'2009) is exclusive of DEPO Computers (divested in September 2009). ** OIBDA is calculated as Operating Income Before Depreciation and Amortisation. Financial year 2009 highlights: - Consolidated revenue totalled $504.5 million, a 23% decrease from 2008 financial year. The revenue decrease was due to the overall decline in the Russian IT services market and depreciation of the rouble, which was partly offset by revenue growth in the software development segment. - OIBDA (Operating Income Before Depreciation and Amortisation) totalled $36.7 million, a 40% increase from 2008 financial year. The OIBDA growth was due to a substantial revenue growth in the software development segment and cost reduction efforts. - OIBDA margin reached 7.3%, compared with 4.0% in 2008 financial year. - Net debt fell to $25.6 million as of March 31, 2010, a 41% decrease from March 31, 2009. The reduction of net debt was due to a substantial positive operating cash flow. - IBS IT Services (the IT Services segment) demonstrated improved profitability compared with 2008 due to its cost control efforts, while the services component of the segment's revenue remained almost unchanged compared with 2008 in rouble terms. In 2009 IBS IT Services was again named Russia's top consulting company by "Expert" Rating Agency. - Luxoft (the Software Development segment) demonstrated strong 25% revenue growth and substantially higher profitability. In 2009 Luxoft has been named the top software development outsourcing service provider in Central and Eastern Europe by the Black Book of Outsourcing survey. The company was also named as one of the world's top 100 outsourcing companies for the fourth consecutive year in "Global Outsourcing 100" rating by International Association of Outsourcing Professionals (IAOP). - The Group successfully restructured its business by divesting Depo Computers, its manufacturing business, in the form of management buy-out in September 2009. - In 2009 the headcount of the Group exceeded 6,000 employees, which gives IBS Group the largest pool of software designers and engineers in Russia and the CIS.
Commenting on the preliminary 2009 results, Anatoly Karachinsky, President and CEO of IBS Group said:
"We are satisfied with the results achieved by our management team in 2009. A comprehensive range of cost control efforts and successful restructuring of the Group secured substantial profit growth. The management efforts also resulted in a significant reduction in debt. Despite a challenging market environment, we continued to execute our business strategy and are now well-positioned to benefit from the expected continued growth in demand for IT services in Russia and beyond."
About IBS Group:
IBS Group is the leading Russian IT company. Through two principal subsidiaries, IBS IT Services and Luxoft, it provides a wide variety of information technology services, such as business and IT consulting, business applications implementation, IT outsourcing and software development. IBS Group is headquartered in Russia and has business operations in Russia, Canada, Germany, Romania, Switzerland, the UK, Ukraine, the USA, and Vietnam. IBS Group employs more than 6,000 people worldwide. In 2009 financial year, IBS Group reported preliminary US GAAP revenues of $505m.
IBS Group's Global Depositary Receipts (GDRs) are listed on the Open Market at the Frankfurt Stock Exchange (Bloomberg: ZY71 GR; Reuters: ZY71.DE). IBS Group is majority-owned by management; institutional investors hold 36% of the Group's share capital.
For more information about IBS Group: - Please visit http://www.ibsgr.com. - Please contact: Gamid Kostoev Director, Corporate Communications Tel: +7-495-967-8080 Mobile: +7-903-720-6078 Fax: +7-495-967-8081 E-mail: firstname.lastname@example.org Dmitry Ivanov Director, Investor Relations Tel: +7-495-967-8087 Mobile: +7-916-618-4034 Fax: +7-495-967-8099 E-mail: email@example.com
SOURCE IBS Group Holding Ltd