IBS Group Announces its Audited Results for Financial Year 2009

Sep 30, 2010, 02:28 ET from IBS Group Holding Ltd

MOSCOW, September 30, 2010 /PRNewswire-FirstCall/ -- IBS Group Holding Limited (hereinafter the "Group" or "IBS Group") announces its audited US GAAP results for 2009 financial year (April 1, 2009 - March 31, 2010).

                                      FY'2009    FY'2008    FY'2009
    $ million, US GAAP                                    vs. FY'2008

    Consolidated revenue*              505.1      656.7       -23%
                 IT Services segment   310.7      472.2       -34%
                   (IBS IT Services)
        Software Development segment   149.0      130.4       +14%
    Online Software Delivery segment               53.2       -13%

    OIBDA**                             33.9       26.2       +29%
    OIBDA margin                         6,7%       4.0%     +2,7%


* 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 Amortization and Goodwill impairment.

    Financial year 2009 highlights:

    - Consolidated revenue totalled $505.1 million, a 23%
      decrease from FY'2008. 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 the revenue growth in the software
      development segment.
    - OIBDA totalled $33.9 million, a 29% increase from FY'2008.
      The OIBDA growth was due to a services revenue share growth in the
      total Group revenue and cost reduction measures.
    - OIBDA margin reached 6.7%, compared with 4.0% in FY'2008.
    - Net Income totalled $13.9 million, compared with a loss in
    - Net Margin reached 2.7%, compared with a negative net margin
      in FY'2008.
    - Net debt fell to $27.3 million as of March 31, 2010, a 38%
      decrease from March 31, 2009. The reduction of the 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 14%
      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 audited 2009 financial year results, Anatoly Karachinsky, President and CEO of IBS Group said:

"We are satisfied with the audited results confirming earlier management forecasts of strong business recovery and improved profitability in 2009. We are now well-positioned to benefit from the expected continued growth in demand for IT services in Russia and beyond. We will continue to execute our business strategy ".

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 US GAAP revenues of $505,1m.

IBS Group's Global Depositary Receipts (GDRs) are listed on the Open Market at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.DE). IBS Group is majority-owned by management; institutional investors hold 34% 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  gkostoev@ibs.ru

    Dmitry Ivanov

    Director, Investor Relations

    Tel.    +7-(495)-967-8087
    Mobile  +7-(916)-618-4034
    Fax     +7-(495)-967-8099
    E-mail  dvivanov@ibs.ru

SOURCE IBS Group Holding Ltd