IBS Group Reports Operating Results for the Three Months Ended June 30, 2013
RAMSEY, the Isle of Man, September 3, 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 three months ended June 30, 2013 (1Q FYE March 31, 2014).
1Q FYE March 31, 2014 highlights
- Consolidated revenues amounted to US$165.6 mn with revenues remaining almost flat y-o-y. In the IT Services segment revenues were US$66.0 mn, down 15.7% y-o-y, while in the Software Development segment revenues came to US$83.8, up 18.0% y-o-y.
- Our headcount increased by 5.2% y-o-y to 8,809, due to further expansion of delivery centers in Software Development segment.
- Total debt amounted to US$78.6 mn, up US$16.2 mn y-o-y. The net debt position came to US$56.5 mn, an increase of US$15.6 mn y-o-y.
Consolidated revenues by segment [*]
1Q FYE 1Q FYE Change US$ mn March 2013 March 2012 y-o-y Consolidated revenues 165.6 165.1 0.3% IT Services segment 66.0 78.3 -15.7% IT Services segment, RUB mn 2 096 2 462 -14.9% Software Development segment 83.8 71.0 18.0% Corporate, other and eliminations 15.8 15.8 0.0%
* Source: management accounts.
Consolidated revenues for the first quarter of FYE March 31, 2014 amounted to US$165.6mn, an increase of 0.3% y-o-y.
IT Services segment revenues for the first quarter of FYE March 31, 2014 amounted to US$66.0 mn, a decrease of 15.7% y-o-y. The segment's revenues in Russian Rubles amounted to RUR2,096 mn, a decline of 14.9% y-o-y. Decline in revenues is largely explained by further deterioration of demand on the Russian IT services market.
Software Development segment revenues for the first quarter of FYE March 31, 2014 were US$83.8 mn, an increase of 18.0% y-o-y. Revenues increase is driven by the global clients, accelerating implementation of the new projects which were postponed from the last year.
Consolidated revenues by geography *
1Q Share 1Q Share Change of FYE of in FYE March total March total absolute US$ mn 2014 revenue 2013 revenue result Revenues generated in Russia 85.2 51.5% 98.2 59.5% -13.2% Revenues generated in Europe 40.5 24.4% 33.6 20.3% 20.5% Revenues generated in North America 39.9 24.1% 33.3 20.2% 19.8%
* Source: management accounts, customer geography determined based on the location of clients' key decision maker.
Revenues from Russian operations amounted to US$85.2mn for the first quarter of FYE March 31, 2014, a decline of 13.2% y-o-y, due to the decrease of revenues in IT Services segment. Revenues generated in Europe amounted to US$40.5 mn, an increase of 20.5% y-o-y, and now account for 24.4% of the consolidated revenues. Revenues generated in North America increased to US$39.9mn, up 19.8% y-o-y and now account for 24.1% of the consolidated revenues. Combined revenues of European and North American operations of Software Development segment now account for 48.5% of the consolidated revenues.
June 30, June 30, Change March Change Number of employees 2013 2012 y-o-y 31, 2013 q-o-q Group headcount 8 809 8 363 5.3% 8 597 2.5% IT Services segment 2 290 2 526 -9.3% 2 397 -4.5% Software Development segment 6 161 5 528 11.5% 5 846 5.4% Corporate and other 358 309 15.9% 354 1.1%
* Source: management accounts.
Our total headcount reached 8,809 employees. In the Software Development segment, the number of employees amounted to 6,161 an increase of 633 IT professionals y-o-y and 315 q-o-q, due to the further rise of demand for Software Development segment's services. In the IT Services segment, the number of employees declined to 2,290 IT professionals, a decrease of 236 IT professionals y-o-y and 107 q-o-q, due to our ongoing restructuring measures in the segment instigated by softening Russian IT market.
June 30, June 30, Change March 31, Change US$ mn 2013 2012 y-o-y 2013 q-o-q Total debt 78.6 62.4 16.2 56.3 22.3 Current debt 56.6 42.0 14.6 35.6 21.0 Non-current debt 22.0 20.4 1.6 20.7 1.3 Net debt 56.5** 40.9 15.6 41.1 15.4
* Source: management accounts.
** Net debt position doesn't include US$ 74.4 mn received by the Group as proceeds from Luxoft's IPO closed in July 2013.
Our total debt amounted to US$78.6 mn as of June 30, 2013, up US$16.2 mn y-o-y and US$22.3 mn q-o-q, driven by the increase of the current debt used for working capital financing of Software Development and IT Services segments. The net debt position was US$56.5 mn, an increase of US$15.6 mn y-o-y and US$15.4 mn q-o-q.
We reiterate our guidance for the consolidated revenues in the FYE March 31, 2014 to increase in the range of 7-10% in US$ terms.
Anatoly Karachinsky, President of IBS Group, commented:
"The weak performance in IT Services segment is due to the extremely unfavourable conditions in the Russian IT market slowing down on the backdrop of Russian economy. However, for software development this was one of the best 1Q's ever. Even with the traditional seasonal decline factored in, the segment has shown robust growth driven by the western markets upturn and recovery of IT market, along with our last year investments into the quality of services and customer relationship building which are now starting to pay off."
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, 2013, the Group reported US GAAP consolidated revenues of US$870.3 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)
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For more information about IBS Group please visit http://www.ibsgr.com
SOURCE IBS Group Holding Ltd
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