IBS GROUP HOLDING LTD IBS Group reports operating results for the three months ended June 30, 2014
IBS Group reports operating results for the three months
ended June 30, 2014
Ramsey, the Isle of Man, 2 September 2014 - IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software developer and IT services provider in Central and Eastern Europe, today announced its preliminary unaudited operating results for the three months ending June 30, 2014 (1Q FYE March 31, 2015).
1Q FYE March 31, 2015 highlights
· Consolidated revenues amounted to US$188.0 mn, an increase of 13.5% y-o-y. IT Services segment revenues amounted to US$60.0 mn, a decline of 9.1% y-o-y. Software Development segment revenues came to US$112.3 mn, an increase of 34% y-o-y.
· Revenues from Russian operations amounted to US$77.2 mn, a decline of 9.4% y-o-y, mostly affected by slowdown in revenues of IT Services segment.
· Our headcount increased to 10,274 employees, up by 16.6% y-o-y driven by expansion of delivery centers in Software Development segment.
· Our total debt amounted to US$51.4 mn as of June 30, 2015, a decline of US$18.0 mn q-o-q. The net cash position stands at US$13.7 mn, with cash position decline of US$12.3 mn q-o-q.
· Our consolidated revenues for the FYE March 31, 2015 are now expected to have negative dynamics in the range -3-1% in USD terms as compared to previous year.
Consolidated revenues by segment *
US$ mn | 1 Q FYE March 31, 201 5 | 1 Q FYE March 31, 201 4 |
Change | |
Consolidated revenues | 1 88.0 | 165 . 6 | 13.5% | |
IT Services segment | 60.0 | 66.0 | -9.1 % | |
IT Services segment, RUB mn | 2 082 | 2 096 | -0.7% | |
Software Development segment | 112.3 | 8 3.8 | 34 % | |
Corporate, other and eliminations | 15.7 | 15.8 | -0.6 % |
* Source: management accounts
C onsolidated revenues for the first three months of FYE March 31, 2015 amounted to US$188.0 mn, an increase of 13.5% y-o-y, mostly driven by stellar performance of the Group Software Development segment.
IT Services segment revenues for the first three months of FYE March 31, 2015 amounted to US$60.0 mn, a decline of 9.1% y-o-y; with revenues expressed in RUB terms totalled 2,082 mn, a decrease of 0.7% y-o-y. Revenues in the segment were negatively affected by further stagnation of the Russian IT market and sharp RUB depreciation against USD in the 1Q FYE March 31, 2015.
Software Development segment revenues for the three months of FYE March 31, 2015 came to US$112.3 mn, an increase of 34% y-o-y driven by acceleration of demand for Luxoft services and its award-winning solutions.
Consolidated revenues by geography *
US$ mn | 1Q FYE March 31, 201 5 | Share of total revenue | 1Q FYE March 31, 201 4 | Share of total revenue | Change y-o-y |
Revenues generated in Russia | 77.2 | 41. 1 % | 85.2 | 51.4% | -9.4% |
Revenues generated in Europe | 60.6 | 32.2% | 40.5 | 24. 5 % | 49.7% |
Revenues generated in North America | 50.2 | 26.7% | 39.9 | 24.1% | 25.8% |
* Source: management accounts; customer geography determined by the location of clients ' key decision makers
Revenues from Russian operations amounted to US$77.2 mn in the 1Q FYE March 31, 2015 , a decline of 9.4% y-o-y, mostly affected by slowdown in revenues of IT Services segment. Revenues generated in Europe amounted to US$60.6 mn, an increase of 49.7% y-o-y , and now account for 32.2% of the Group revenues. Revenues generated in North America increased to US$50.2 mn, up 25.8% y-o-y, and now account for 26.7% of the Group revenues. Our revenues in both geographies increased substantially due to the growth of revenues in Software Development segment.
Headcount *
|
* Source: management accounts
Our headcount increased to 10,274 employees, up by 16.6% y-o-y. In the IT Services segment, the number of employees declined to 2,146 IT professionals. We continue to reduce headcount in the segment to match the size of our operations with underlying domestic market demand. In the Software Development segment , the number of employees amounted to 7,777 , as we added 1,616 IT professionals on the net basis over the year.
Debt *
US$ mn | June 30 , 201 4 | June 30 , 201 3 | Change y-o-y | March 3 1 , 201 4 | Change q-o-q | ||
Total debt | 51.4 | 78.6 | -27.2 | 69.4 | -18.0 | ||
Current debt | 48.5 | 56.6 | -8.1 | 67.3 | -18.8 | ||
Non-current debt | 2.9 | 22.0 | -19.1 | 2.1 | 0.8 | ||
Net debt / (- Net cash) | -13.7 | 56.5 | -70.2 | -26.0 | 12.3 | ||
* Source: management accounts
Our total debt amounted to US$51.4 mn as of June 30, 2015, a decline of US$27.2 mn y-o-y and US$18.0 mn q-o-q. The biggest impact on the debt reduction came from the settlement of EBRD loan that the Group repaid in June 2014 The net cash position stands at US$13.7 mn, an increase of US$70.2 mn y-o-y and decrease of US$12.3 mn q-o-q. Our quarterly decrease in net cash is attributable to the growth of the seasonal working capital requirements in the IT Services segment.
Consolidated revenues outlook
We downgrade our consolidated revenues outlook for the FYE March 31, 2015 from previous guidance that consolidated revenues will increase in the range 4-8% in USD terms, to current guidance that consolidated revenues will have negative dynamics in the range -3-1% as compared to the previous year.
Anatoly Karachinsky , President of IBS Group, commented :
"The results for the first three months we've just reported were among the highest ever recorded by the Software Development segment. Sustainable growth of the segment was driven by the high demand on the global IT market, specifically on the part of financial and automotive industrial verticals.
At the same time the IT Services segment revenue was declining due to the macroeconomic and geopolitical factors, with their growing impact on Russia's domestic market. Current high levels of uncertainty, specifically the ones linked to the levels of RUB/USD and potential effects from economic sanctions make us conservative when it comes to forecasts for the Russian IT market."
About IBS Group Holding Limited
IBS Group is a leading software development and IT services provider in Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development and IT services outsourcing, IT infrastructure and business applications implementation. IBS Group has business operations in Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA, Vietnam and Singapore. IBS Group employs more than 10,000 people worldwide. In the year ended March 31, 2014, the Group reported US GAAP consolidated revenues of US$903.6 mn. IBS Group's Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)
|
Disclaimer
The information contained in this 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 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.
|
distributed by
|
