IBS Group Reports Operating Results for the Quarter and Full Year Ended March 31, 2013
RAMSEY, Isle of Man, May 30, 2013 /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 developer and IT services provider in Central and Eastern Europe, today announced its preliminary unaudited operating results for the fourth quarter of the financial year ending March 31, 2013 as well as full year ending March 31, 2012 (4Q and FYE March 31, 2013).
FYE March 31, 2013 highlights
- Consolidated revenues amounted to US$870.5 mn, a 6.6% increase y-o-y, with growth in comparable revenues* of 10.9% y-o-y.
- Revenues in the IT Services segment came to US$483.8 mn, up 1.5% y-o-y. The segment's comparable revenues* growth amounted to 8.6% in US$ terms and 11.1% in Russian Ruble terms.
- Revenues in the Software Development segment amounted to US$314.6, up 16.0% in US$ terms and 18.9% in constant currency terms.
- Revenues generated in Europe and North America amounted to US$291.2 mn, and now account for 33.5% of consolidated Group revenues against 31.4% a year ago.
- Our headcount reached 8,597, due to an increase of personnel in the Software Development segment.
- Total debt amounted to US$56.5 mn, an increase of US$14.0 mn y-o-y. The net debt position came to US$41.4 mn, up US$17.4 mn y-o-y.
* Comparable revenues defined as revenues that exclude results of OOO Borlas Group for the FYE March 31, 2012.
Consolidated revenues by segment [*],[ **]
4Q FYE FYE FYE 4Q FYE March Change March March Change US$ mn March 2013 2012 y-o-y 2013 2012 y-o-y Consolidated revenues 198.4 183.1 8.3% 870.5 816.3 6.6% Consolidated revenues (ex-disposals) 198.4 183.1 8.3% 870.5 785.1 10.9% IT Services segment 93.4 92.4 1.1% 483.8 476.7 1.5% IT Services segment, (ex-disposals) 93.4 92.4 1.1% 483.8 445.5 8.6% IT Services segment, RUB mn (ex-disposals) 2 780 2 667 4.3% 14 754.0 13 284.0 11.1% Software Development segment 85.9 72.6 18.4% 314.6 271.1 16.0% Software Development segment, in constant currency 19.5% 18.9% Corporate, other and eliminations 19.1 18.1 5.4% 72.0 68.5 5.2%
* Source: management accounts.
** Revenues (ex-disposals) exclude the results of OOO Borlas Group for FYE March 31, 2012.
Consolidated revenues for the FYE March 31, 2013 amounted to US$870.5 mn, an increase of 6.6% y-o-y. Consolidated revenues growth ex-disposals totaled 10.9% y-o-y. Consolidated revenues for the fourth quarter of FYE March 31, 2013 amounted to US$198.4 mn, an increase of 8.3% y-o-y. The growth in revenues was driven by an increase in revenues in Software Development segment.
IT Services segment revenues for the FYE March 31, 2013 amounted to US$483.8 mn, up 1.5% y-o-y. Following the adjustment of the segment's revenues for the disposal of OOO Borlas Group, which added US$31.2 mn in the respective period (In February 2012, the Group exchanged 100% of OOO Borlas Group shares for 14.09% of shares in IBS IT Services subsidiary, raising effective ownership in the segment to 97.02%), revenues ex-disposal increased by 8.6% in US$ terms and by 11.1% in Russian Ruble terms in the FYE March 31, 2013. The segment's revenues for the fourth quarter amounted to US$93.4 mn, an increase of 1.1% y-o-y. OOO Borlas Group revenues had no impact on the IT Services revenues during 4Q FYE March 31, 2012.
Software Development segment revenues for the FYE March 31, 2013 were US$314.6 mn, an increase of 16.0% y-o-y. Segment's revenues for the fourth quarter amounted to US$85.9 mn, an increase of 18.4% y-o-y. The segment's revenues in constant currency* increased by 18.9% and 19.5% y-o-y, in the full year and fourth quarter of the year ended March 31, 2013, respectively.
* Constant currency revenues are calculated based on a weighted average of actual daily exchange rates for previous periods.
Consolidated revenues by geography *
Share Share Change of FYE of in FYE March total March total absolute US$ mn 2013 revenue 2012 revenue result Revenues generated in Russia and the CIS 579.3 66.5% 560.0 68.6% 3.4% Revenues generated in Europe 150.4 17.3% 139.7 17.1% 7.7% Revenues generated in North America 140.8 16.2% 116.6 14.3% 20.7%
* Source: management accounts, customer geography determined based on the location of clients' key decision maker.
Revenues from Russian operations amounted to US$579.3 mn for the full year of FYE March 31, 2013, an increase of 3.4% y-o-y. Revenues generated in Europe amounted to US$150.4 mn, an increase of 7.7% y-o-y, and now account for 17.3% of the Group revenues. Revenues generated in North America increased to US$140.8 mn, up 20.7% y-o-y and now account for 16.2% of the Group's revenues.
March March Change December Change Number of employees 31, 2013 31, 2012 y-o-y 31, 2012 q-o-q Group headcount 8 597 8 229 4.5% 8 473 1.5% IT Services segment 2 397 2 668 -10.2% 2 464 -2.7% Software Development segment 5 846 5 254 11.3% 5 671 3.1% Corporate and other 354 307 15.3% 338 4.7%
* Source: management accounts.
The Group's total headcount reached 8,597 employees. In the Software Development segment, the number of employees amounted to 5,846, an increase of 592 IT professionals y-o-y and 175 IT professionals q-o-q. In the IT Services segment, the number of employees dropped to 2,397 IT professionals as a result of business restructuring and the disposal of Expertek which commenced in July 2012.
March March 31, 31, Change December 31, US$ mn 2013 2012 y-o-y 2012 Change q-o-q Total debt 56.5 42.5 14.0 54.3 2.2 Current debt 35.8 20.9 14.9 33.4 2.4 Non-current debt 20.7 21.6 -0.9 20.9 -0.2 Net debt 41.4 24.0 17.4 12.9 28.5
* Source: management accounts.
The Group's total debt amounted to US$56.5 mn as of March 31, 2013, up US$14 mn y-o-y and US$2.2 mn q-o-q. The net debt position was US$41.4 mn, an increase of US$17.4 mn
y-o-y and US$28.5 mn q-o-q. The increase in the net debt position over the last year is attributable to the working capital growth in both of our subsidiaries, and over the last quarter due to the seasonal effect.
Anatoly Karachinsky, President of IBS Group commented,
"Our business has continued to grow despite the turbulence in the global economy and the slowdown in domestic IT market over the last year. We are pleased with the results in the software development segment which showed growth of 18.4% in the last quarter, the highest of the whole year. Evidently, the downward trend in the growth rate of the segment at the beginning of last year has ended. This followed a period of instability in the financial sector. The relatively low growth rates in the IT Services segment at that time can be attributed to the inclusion of the deconsolidation of certain entities, as well as fluctuations in the ruble. Comparatively, this segment saw growth of more than 11%."
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 8,500 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)
For more information about IBS Group please visit http://www.ibsgr.com
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 Ltd
More by this Source
Shareholders of the IBS Group Approved Dividends for the FYE March 31, 2013
Sep 04, 2013, 05:30 ET
IBS Group Reports Operating Results for the Three Months Ended June 30, 2013
Sep 03, 2013, 03:02 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.