IBS Group Reports its Operating Results for the Half-Year Ending September 30, 2010

Dec 09, 2010, 10:31 ET from IBS Group Holding Ltd

RAMSEY, Isle of Man, December 9, 2010 /PRNewswire-FirstCall/ --

- Please Refer to Important Legal Information at the End of the Document

IBS Group Holding Limited (XETRA: IBSG.DE) announces today its operating results for H1 of FY'2010 (1 April 2010 - 30 September 2010).

    Consolidated Revenues, Net of Intercompany Sales*

    US$ million                                     H1         H1   Change,%
                                                 FY'2010    FY'2009

    Consolidated revenues                          285.8     225.7     +27%
    Revenues of IT Services segment                164.0     136.9     +20%
    Revenues of Software Development segment        92.1      70.7     +30%
    Revenues of Online Software Delivery segment    29.7      18.1     +64%

* Based on unaudited management accounts for H1 FY'2010 and H1 FY'2009, revenues for both periods are exclusive of DEPO Computers (divested in September 2009)

    - Consolidated revenues for H1 FY'2010 totalled $286 million, a 27%
      increase from H1 FY'2009 supported by positive developments in all
      business segments.

    - The IT Services segment (IBS IT Services) demonstrated a 20% revenue
      growth mostly due to the infrastructure projects market recovery, with
      the segment returning to its normal seasonal operating pattern.

    - The Software Development segment (Luxoft) demonstrated a 30% revenue
      growth, driven by orders from both existing and new customers. Software
      development for the financial services industry remains the strongest
      business line for Luxoft. In H1 FY'2010, Luxoft was named the top
      software development outsourcing service provider in Central and
      Eastern Europe in a survey by the highly acclaimed Black Book of

    - The Online Software Delivery segment (Softkey) demonstrated a 64%
      revenue growth, reflecting a strong uptake of new programs and
      services as well as a growing brand recognition by customers.

    Consolidated Revenues Distribution by Geographies*

                                          H1 FY'2010 H1 FY'2009 Change

    Share in revenues from Russia and CIS    70%        72%       -2%
    Share in revenues from Europe            20%        15%       +5%
    Share in revenues from North America     10%        13%       -3%

    * Based on unaudited management accounts for H1 FY'2010 and H1 FY'2009

    - The share of revenues from international operations as a percentage of
      total sales increased from 28% to 30%, driven by strong Western
      European demand for software development services. As a result, the
      share of revenues from European customers as a percentage of total
      sales increased from 15% to 20%. The share of revenues from North
      American customers as a percentage of total sales remained steady in
      absolute terms, but declined in relative terms from 13% to 10%.

    - The share of revenues from customers in Russia & CIS as a percentage of
      total sales decreased only marginally from 72% to 70%, while
      increasing by 23% in absolute terms.

    Group Headcount*

    Number of employees       H1 FY'2010 H1 FY'2009 Change, %

    Group headcount             6,771      5,708      +19%

    * Group headcount as of 30 September 2010 and 30 September 2009

    - As of the end of H1 FY'2010, the headcount of the Group reached 6,771
      employees, an increase of 19% compared to H1 FY'2009 due to the
      Software Development segment growth.

    Full Year Revenue Forecast

    - IBS Group expects to achieve approximately US$650 million in
      consolidated revenues in the financial year ending 31 March 2011
      (FY'2010), subject to stable market conditions and macroeconomic

    Other Developments

    - In October 2010, the Group obtained a USD 20 million convertible loan
      from the European Bank for Reconstruction and Development in line
      with its strategy to diversify instruments and sources of financing
      and in order to further reduce its borrowing costs.

    - In August 2010, Luxoft established a new development centre in Krakow
      (Poland) to meet the customer demand and support its organic growth
      in the European region. It became the second Eastern European
      location to provide sophisticated software engineering services to
      customers in Europe, complementing the existing centre in
      Bucharest (Romania).

    - In August 2010, Luxoft expanded its operations in Asia, adding a new
      delivery centre in Singapore to the existing facilities in Vietnam.
      The company expects to further strengthen its footprint in the Asian
      region in the ensuing years.

    - In August 2010, Luxoft opened a new technical development centre in the
      UK to provide product realisation services to large telecom equipment
      vendors. Avaya, one of Luxoft's major partners, helped launch the
      development centre by continuing its relationship with Luxoft at the
      UK facility, jointly working on the development of Avaya's IP Office
      product range.


IBS Group is the leading emerging European IT company. Through its 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, Poland, Switzerland, the UK, Ukraine, the USA, Vietnam and Singapore. IBS Group employs more than 6,700 people worldwide. In 2009 financial year, IBS Group reported US GAAP revenues of $505m.

IBS Group's Global Depositary Receipts (GDRs) are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.DE). IBS Group is majority-owned by management with portfolio investors holding 31% of the Group's share capital.

The information contained in this press release is not intended for distribution, publication or disclosure in or within the United States of America, Canada, Australia or Japan.


The information contained in this press 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 press 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.

For more information about IBS Group please visit http://www.ibsgr.com or contact Investor Relations:

    Dmitry Ivanov

    Investor Relations Director
    tel: +7(495)967-8000
    fax: +7(495)967-8099
    cel: +7(916)618-4034

SOURCE IBS Group Holding Ltd