DEVOTEAM (EPA:DVT) Devoteam: Q3 2016 revenues growing 13.8%
Transparency directive : regulatory news
15/11/2016 17:35
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Press release
Q3 2016 revenue at EUR130.8 million, growing 13.8% and 12% organically
Full-year guidance increased for revenue and operating margin
Paris, November 15th 2016
In millions of euros Q3 2016 Q3 2015 9m 2016 9m 2015
Revenue 130.8 114.9 406.2 347.1
Variation 13.8% 17.0%
L-f-l variation* 12.0% 15.3%
L-f-l variation* excluding
Between 5.6% 8.6%
*At comparable perimeter and exchange rates
Devoteam (Euronext Paris: DVT) reported revenues of EUR130.8 million for the
third quarter of 2016, a 12.0% increase compared to the third quarter of 2015,
excluding changes in currency and scope.
Consolidated revenues have increased by 13.8% compared to the third quarter of
2015. This increase includes the effects of negative currency fluctuations in
certain countries amounting to 0.8%, principally in respect of the Pound
Sterling. The acquisitions of Drago and myG generated revenues of EUR3.7
million in the third quarter of 2016. The acquisitions of Q-Partners, HNCO and
Globicon, the subsidiaries consolidated with effect from July 1st 2016 into the
Group, generated revenues of EUR2.2 million in the third quarter of 2016. In
respect to the divested operations, Grimstad in Norway and Genesis in
Switzerland contributed EUR2.8 million of consolidated revenues in the third
quarter of 2015.
The SMACS offers are still driving the growth of the Group. It represented 38%
of revenue at the end of September 2016 (excluding Between, Be Team and changes
in scope) and grew 25% compared to the same period in 2015.
Analysis of Q3 2016 revenue by region
France generated revenues of EUR54.6 million in the third quarter of 2016,
representing a growth of 11.2% organically, driven by the Cloud offers and the
growth initiatives.
Northern Europe and Benelux (excluding Between) achieved revenues of EUR26.3
million at constant exchange rates and perimeter, representing a growth of
2.2%, driven primarily in Denmark and Belgium.
The Central Europe region achieved revenues of EUR12.0 million, representing an
organic decrease of 6.6%. This is primarily due to the seasonality of license
sales in the region and the slowdown in subcontracted Telecoms work within our
operations in Germany experienced in the third quarter. Conversely, the country
has improved its long-term growth drivers. In the second half of 2016, both the
number of billable employees and the utilization rate are increasing.
Rest of the world reported revenues of EUR18.8 million, growing 4.7%
organically compared to the third quarter of 2015.
Between, the broker activity in the Netherlands, pursued the rapid growth and
generated revenues of EUR19.2 million during the third quarter of 2016.
Headcount and utilization rate
As of September 30th 2016, the Group employed 4 119 people compared to 4 002
people as of June 30th 2016. The acquisitions of Q-Partners, HNCO and Globicon
resulted in the integration of 55 people and the disposal of the Swiss entity
reduced the headcount by 20 people on July 1st 2016. When excluding the changes
in scope, the headcount rose by 82 people catching up, as previously announced,
the slight slowdown experienced in the second quarter of 2016.
The ratio of billable headcount to total headcount improved to 85.0% compared
to June 30th 2016.
On the third quarter, the Group showed a utilization rate of internal resources
excluding divestments at 85.5%, against 85.1% in the second quarter of 2016.
2016 outlook
Based on the performance of the third quarter of 2016, the revenue for the year
2016 should grow 13% compared to 2015 and should be in the high range of the
guidance released previously. The operating margin should be close to 8.5% of
the revenue.
Financial calendar
Press release after market closed 2020 strategic plan
Q4 2016 Q1 2017
March 1st 2017 May 16th 2017 January 19th 2017
Appendix
Revenue by region
In millions of euros Q3 2016 Q3 2015 9m 2016 9m 2015
France 54.6 49.0 169.9 150.4
Variation 11.5% 12.9%
L-f-l variation 11.2% 12.6%
Northern Europe & Benelux 26.3 25.2 84.7 80.5
Variation 4.5% 5.3%
L-f-l variation 2.2% 6.5%
Central Europe 12.0 11.9 34.7 34.3
Variation 0.9% 1.2%
L-f-l variation -6.6% -1.4%
Rest of the world 18.8 14.9 56.4 41.2
Variation 26.5% 36.8%
L-f-l variation 4.7% 11.1%
Corporate (0.2) 0.0 (0.3) (0.1)
Between 19.2 11.2 56.5 30.7
Variation 71.8% 84.2%
L-f-l variation 71.8% 84.2%
Divestments (2015-2016) 0.0 2.8 4.2 10.0
Total 130.8 114.9 406.2 347.1
Variation 13.8% 17.0%
L-f-l variation 12.0% 15.3%
L-f-l variation excluding
Between 5.6% 8.6%
Of which contribution of the acquisitions:
In millions of euros Q3 2016 Q3 2015 9m 2016 9m 2015
France 0.1 - 0.5 -
myG France, consolidated as of
October 1st 2015 0.1 - 0.5 -
Northern Europe & Benelux 1.4 - 1.4 -
HNCO, consolidated as of July 1st 2016 0.7 - 0.7 -
Globicon, consolidated as of July
1st 2016 0.5 - 0.5 -
Central Europe 0.9 - 0.9 -
Q-Partners Consulting, consolidated
as of July 1st 2016 0.9 - 0.9 -
Rest of the world 3.5 - 11.3 -
Drago, consolidated as of October
1st 2015 3.5 - 11.2 -
myG Spain, consolidated as of October
1st 2015 0.0 - 0.1 -
Utilization rate of internal resources excluding divested entities
Q1 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015 Q1 2016 Q2 2016 Q3 2016
83.2% 84.7% 85.2% 84.9% 84.5% 82.9% 85.1% 85.5%
Changes in exchange rates
For EUR1 Average rate Average rate Variation
9m 2016 9m 2015
UAE dirham 4.099 4.096 -0.1%
Swiss franc 1.094 1.062 -2.8%
Czech koruna 27.035 27.337 1.1%
Danish krone 7.447 7.457 0.1%
Algerian dinar 121.737 108.826 -10.6%
Pound sterling 0.803 0.728 -9.3%
Moroccan dirham 10.883 10.749 -1.2%
Mexican peso 20.414 17.349 -15.0%
Norwegian krone 9.380 8.807 -6.1%
Zloty 4.358 4.152 -4.7%
Tunisian dinar 2.348 2.164 -7.8%
Turkish lira 3.276 2.963 -9.6%
Glossary
Like-for-like or l-f-l variation: variation at comparable perimeter and
exchange rates
France: French operations including the two nearshore centers in Morocco and
Spain
Northern Europe & Benelux: Belgium, Denmark, United-Kingdom, Luxembourg,
Netherlands excluding Between, and Norway excluding divested activities
Central Europe: Austria, Czech Republic, Germany and Poland
Rest of the world: Middle East, Algeria, Spain excluding nearshore, Italy,
Morocco excluding nearshore, Mexico, Tunisia and Turkey
Corporate & other: headquarter activities which cannot be allocated directly to
the operational regions. It also includes some non-significant remaining
activities of the discontinued businesses in France (mainly outsourcing)
Between: the " Between" subsidiary in the Netherlands, specializing in "
sourcing" of IT professionals, has a relatively volatile revenue to the extent
that , according to the contracts concluded and the type of missions carried
out, turnover recognized in the consolidated accounts is either gross margin
contracts or the entire client billing. Consequently, the Group separates this
activity to calculate its growth aggregates
Divestments (2015-2016) or discontinued activities: in 2016, discontinued
activities include Grimstad activities in Norway, deconsolidated as of May, 1st
2016, and Devoteam Genesis, deconsolidated as of July, 1st 2016. In 2015, they
also include Exa ECS, deconsolidated as of April 1st, 2015
Utilization rate of resources: number of working days of billable employees
that were billed to a client compared to the total number of available days
excluding holidays
Operating margin: current operating result excluding the cost of share-based
payments and the amortization of intangible assets resulting from
acquisitions.
ABOUT DEVOTEAM
At Devoteam, we deliver innovative technology consulting for business. We are
4,000 professionals dedicated to ensuring our clients win their digital
battles.
Present in 20 countries and drawing on 20 years of experience, we improve
business performance making their companies truly digital. We build IT
infrastructure for digital, and make sure people are along for the ride.
In 2015, Devoteam achieved revenues of EUR485m.
At Devoteam, we are Digital Transformakers. ISIN: FR0000073793, Reuters:
DVTM.PA, Bloomberg: DEVO FP
Executive Board
Stanislas de Bentzmann,
Co-CEO
stanislas.de.bentzmann@devoteam.com
Financial communication
Evelyne Broisin,
Group controlling & investor relations director
evelyne.broisin@devoteam.com
Perrine Angibault,
Group reporting & investor relations manager
perrine.angibault@devoteam.com
Press contacts
Le Public Système
Célina Da Silva,
cdasilva@lepublicsysteme.fr
+33 6 16 79 29 32
www.devoteam.com
Press release