INFOTEL (EPA:INF) - Infotel : H1 2020 results. Resilient given the exceptional environment. Revenue: €118.4m. EBITDA: €11.9m. Net income, Group share: €4.8m.

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16/09/2020 17:45

Euronext B - ISIN: FR0000071797
Reuters: ETOF.PA - Bloomberg: INF FP

Press Release
Paris, 16 September 2020

                                H1 2020 results
                  Resilient given the exceptional environment
                              Revenue: EUR118.4m
                               EBITDA: EUR11.9m
                       Net income, Group share: EUR4.8m

The Board of Directors approved the 2020 half-year financial statements at its
meeting of 16 September 2020. They were subject to a limited review by the
Statutory Auditors.

In EURm, at 30 June                              H1 2019   H1 2019
(Audited financial statements)         H1 2020   IFRS IC*  reported    Change

Consolidated revenue                    118.4     122.3      122.3     -3.2%
o/w Services                            114.2     118.2      118.2     -3.4%
o/w Software                              4.2       4.1        4.1     +2.9%
Personnel expenses                      (51.5)    (54.0)     (54.0)    -4.6%
External expenses                       (53.0)    (53.7)     (53.5)    -1.1%
EBITDA(1)                                11.9      12.3       12.5     -3.3%
as a % of revenue                        10.1%     10.1%      10.2%
Depreciation, amortisation
and provisions                           (3.9)     (2.9)      (3.1)   +32.8%
Current operating income                  8.0       9.5        9.5    -16.2%
as a % of revenue                         6.7%      7.8%       7.8%
Operating income                          9.0       9.5        9.5     -4.9%
Financial income                         (0.2)     (0.1)     (0.03)
Corporation tax                          (3.9)     (4.3)      (4.3)    -9.0%
Net income, Group share                   4.8       4.9        5.0     -4.2%
as a % of revenue                         4.0%      4.0%       4.1%

(1) EBITDA is calculated as follows: Current operating income + depreciation,
amortisation and provisions - provisions for current assets + provisions for
disputes + amortisation of research tax credit + retirement provisions.
* Decision by IFRS IC on application with retroactive effect to 1 January
2019.

Activity showed resilience despite the crisis

In the context of an unprecedented health crisis, Infotel made revenue of
EUR118.4m in the first six months of 2020, representing a decrease of -3.2%.
As a reminder, it made Q1 2020 revenue of EUR66.0m and Q2 2020 revenue of
EUR52.5m.

The Services business recorded first-half revenue of EUR114.2m, a decrease of
-3.4%. With a mixed impact from Covid-19 depending on the sector, Infotel saw a
fall in the contribution from its Services/Transport (17.4% of revenue versus
21.2%) and Industry (26.2% of revenue versus 28.2%) markets, which was offset
by an increase in the contribution from the Banking/Finance activities (39.8%
of revenue versus 36.1%).

The group was very quick to implement several measures to help it deal with the
health crisis. From mid-March, Infotel put its 300 staff members on subsidised
leave, which it has been gradually reducing since June. It reduced the number
of subcontractors but laid off no employees.

At 30 June 2020, it had an average employee headcount of 1,716, with a low
inter-contract rate of 3.2%.

The Software activity saw revenue growth of +2.9% to EUR4.2m, incorporating
EUR2.4m in IBM royalties. After the half-year closing, Infotel signed a
multi-year contract with American Airlines for the use of its Orlando suite.

Satisfactory results given the context

Operating income came out at EUR9.0m in the first half of 2020, a slight
decrease that can notably be explained by the contraction in activity linked to
the health crisis and the awarding of free shares to company managers in the
amount of EUR2m to retain their expertise and strengthen their role in the
operation of the Group. If we exclude these free shares, current operating
income came to EUR10.0m and operating income EUR11.0m. These expenses were
offset by non-current income.
Net income, Group share reached EUR4.8m.

Robust financial structure

The balance sheet shows a total of EUR205.0m at 30 June 2020, compared with
EUR176.2m at 30 June 2019. Shareholders' equity increased to EUR92.2m, from
EUR83.2m a year earlier.
The Group recorded an increase in non-current assets, including rights of use
for a net amount of EUR31.8m.
It had no financial liabilities at 30 June 2020.
The net cash position showed an increase at the end of H1 2020 to EUR74.6m
compared with EUR62.5m the previous year.

Year-end target

Infotel anticipates a fall in full-year revenue (-7% to -8%) compared with
2019, and to maintain a similar operating margin to that of 2019. It expects to
see a return to growth in 2021.

                                  Next event:
         Publication of Q3 2020 revenue: 21 October 2020 after market.

About Infotel
Listed on Compartment B of Euronext Paris since January 1999 (ISIN code
FR0000071797), Infotel specialises in information management systems for major
accounts, from mobile to very high-volume databases (Big Data). Operating at
the forefront of technological innovation, Infotel develops its expertise
across two complementary divisions: IT services and software publishing.
Infotel posted revenue of EUR248.4 million in 2019 and employs over 2,400
people.

Contacts

Infotel                            Actifin
Michel KOUTCHOUK                   Communication financière
Directeur général                  Ghislaine GASPARETTO
Tél. : 01 48 97 38 38              Tél. : 01 56 88 11 11
michel.koutchouk@infotel.com       ggasparetto@actifin.fr

www.infotel.com

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INFOTEL (EPA:INF) - Infotel : H1 2020 results. Resilient given the exceptional environment. Revenue: €118.4m. EBITDA: €11.9m. Net income, Group share: €4.8m.

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