itelligence AG Publishes Key Figures for the First Half of 2017

- Revenues for cloud subscription almost doubled 

- Above-average EBIT growth of 33.3% to MEUR 10.8 

- Revenue forecast for 2017 increased: revenue growth to between MEUR 840 and MEUR 850 with EBIT margin remaining at 5.0%

After the first half of 2017, itelligence AG's revenues and earnings remain well up on the previous year. For instance, in the first six months of 2017, revenues rose by 16.4% from MEUR 357.7 to MEUR 416.2. These impressive results were attributable to organic growth (8.9%) as well as the revenue growth resulting from newly acquired companies (7.5%). Earnings before interest and taxes (EBIT) improved strongly by 33.3% from MEUR 8.1 to MEUR 10.8. Orders on hand at itelligence AG rose by 31.9% from MEUR 661.0 as at June 30, 2016, to MEUR 871.6 as at June 30, 2017.

     (Photo: http://mma.prnewswire.com/media/536334/NorbertRotter_CEO_itelligence.jpg )
     (Photo: http://mma.prnewswire.com/media/536333/itelligence_Michael_Dorin_CFO.jpg )

Norbert Rotter, CEO of itelligence AG, commented: "License revenues remained strong, while cloud services (cloud-subscription and managed-cloud revenues) also performed especially positively. In these promising segments in particular, we have positioned ourselves extremely well, including through purchases, and are benefiting from rising demand."

In the individual revenue areas, consulting business improved with an increase in revenues of 10.7% from MEUR 158.5 to MEUR 175.5 in the first six months. Managed services also continued to generate strong revenue growth, with an increase of 20.8% from MEUR 166.5 to MEUR 201.1. At MEUR 5.2, cloud-subscription revenues were almost twice as high (+92.6%) as the MEUR 2.7 posted in the first half of the previous year. Licenses business also continued to expand in the first half of the year, with revenues here up by 13.8% from MEUR 28.3 to MEUR 32.2.

In terms of geographical breakdown, revenue growth was attained in all segments. For instance, the largest segment, DACH, continued to grow strongly, generating a 24.5% rise in revenues from MEUR 159.8 to MEUR 199.0. The Western Europe segment also posted an increase of 11.3% to MEUR 93.9 after MEUR 84.4 in the previous year.

Eastern Europe generated revenue growth of 5.7% in the first half of the year, from MEUR 38.6 to MEUR 40.8. The USA segment saw revenues rise by 9.0% to MEUR 72.7 compared with MEUR 66.7 in the same period of the previous year. Finally, Asia posted growth of 20.0%, generating revenues of MEUR 7.2 in the first six months as against MEUR 6.0. In the Other segment, revenues increased by 18.2% from MEUR 2.2 to MEUR 2.6.

In terms of earnings performance, itelligence AG enjoyed a strong first six months, with above-average growth. EBIT improved by 33.3% from MEUR 8.1 in the previous year to MEUR 10.8 in the first six months of 2017. In line with this, the EBIT margin rose to 2.6% after 2.3% in the same period of the previous year. However, EBIT was slightly lower than expected in the second quarter of 2017, amounting to MEUR 3.6 compared with MEUR 4.2 in the second quarter of 2016. EBITA improved by 37.1% in the first half of the year to MEUR 15.9 as against MEUR 11.6. The EBITA margin thus came to 3.8% after 3.2% in the same period of the previous year.

Dr. Michael Dorin, CFO of itelligence AG since January 1, 2017, remarked: "Overall, we are delighted with the strong revenue performance. We expect to at least partly make up for the lower capacity utilization due to project starts delayed by customers - and therefore a slightly lower margin in the second quarter - in the second half of the year."

In view of the outstanding revenue performance, the Management Board is increasing its forecast for fiscal 2017, and now expects revenues of MEUR 840 to MEUR 850 (previously MEUR 820 to MEUR 830), again with an EBIT margin of around 5%.

About itelligence

itelligence is one of the leading international full-service providers of solutions in support of SAP solutions, employing about 6,000 highly qualified employees in 24 countries. As a frequently awarded SAP partner, itelligence is an SAP Hybris Gold partner and global value-added reseller. itelligence is an SAP-certified provider of cloud services, SAP-certified provider of hosting services for SAP HANA® Enterprise Cloud and an SAP platinum partner. itelligence realizes complex projects in the SAP solution-based environment worldwide. The company's services in support of SAP solutions range from consulting and licensing to application management services and hosting services to proprietary industry-specific solutions. In 2016, itelligence generated total sales of EUR 777.9 million. 

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itelligence AG
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SOURCE itelligence AG