DEVOTEAM: Revenues of €380 million over the first nine months of 2012

Wed Nov 7, 2012 1:30pm EST

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DEVOTEAM: Revenues of €380 million over the first nine months of 2012

  • Revenues of €118 million over the third quarter of 2012 - stable in France;
  • Roll-out of the EAGLE plan in first nine countries, according to the initial plan;
  • Reimbursement of the last instalment of OBSAR debt, contracted in 2006.

Devoteam (NYSE Euronext Paris: DVT) reported revenues of €380 million over the first nine months of 2012 – a 2.7% decrease compared to the same period in 2011, or -3.5% on a like-for-like basis.

Revenues from activities in France remained stable with a 0.1% decrease over the first nine months of 2012. Revenues from activities outside of France decreased almost 5%.

Revenues by geography

Revenues, in millions of euros

(non audited figures)

  Q3 2012   Q3 2011   9m 2012   9m 2011
France   55.1   54.9   175.6   175.8

Var.

+0.4%

-0.1%

Var. Like-for-like ((*))

+0.4%

 

-0.1%

 
Rest of the World 62.4 67.0 204.3 214.6

Var.

-6.8%

-4.8%

Var. Like-for-like ((*))

-9.2%

-6.3%

                 
Total 117.6 121.9 379.9 390.5

Var.

-3.6%

-2.7%

Var. Like-for-like ((*))

-4.9%

-3.5%

 

(*) At constant exchange rates and perimeter.

 

Revenues by segment

Revenues, in millions of euros

(Non audited figures)

  Q3 2012   Q3 2011   9m 2012   9m 2011

Business consulting       

  19.1   20.1   63.7   68.2

Var.

-4.8%

-6.6%

Var. Like-for-like ((*))

-8.6%

-9.3%

 

Technology consulting      

98.4 101.8 316.2 322.3

Var.

-3.4%

-1.9%

Var. Like-for-like ((*))

-4.1%

-2.3%

 

(*) At constant exchange rates and perimeter.

 

Performance analysis – third quarter 2012

At €98 million, revenues generated by the Technology Consulting activities decreased by 3.4% over the quarter, or 4.1% excluding the effect of exchange rates. They were mainly impacted by the negative trends in the Financial Services and Telecom sectors and a challenging context in Belgium.

Counterbalancing this, the IT Service Excellence offer (including IT Service Management) performed well, especially in Spain.

Standing at €19 million, revenues from Business Consulting decreased 4.8%. This was mainly due to a lower performance in the Scandinavian region, which was partly offset by a positive currency effect. The Cloud and Mobility offers are generating new opportunities for this activity, which benefits from an upstream positioning on major IT transformation projects.

Group headcount evolution and utilisation rate

With 4,661 employees as per September 30th 2012, the Group’s total headcount decreased by 99 consultants, as a consequence of the business environment. The number of non-billable employees was reduced by 22 over the quarter, allowing further improvement of the ratio of billable employees over the total number of employees.

The utilisation rate of internal resources1 stood at 83% over the third quarter of 2012, compared to 84% over the same period in 2011 and 82% in the first half of 2012.

Share capital and financial position

Devoteam repurchased €0.2 million worth of its shares over the quarter. To comply with regulatory requirements, the Management Board reduced the capital by cancelling 400,065 shares, bringing the treasury shares level at 6.8% of the share capital as per October 31st, 2012. As a result, the share capital of Devoteam now amounts to €1,527,761, representing 10,081,335 shares with a nominal value of €0.15 each.

The financial position of the Group remains sound. The Group reimbursed on November 5th, 2012, the last instalment of its OBSAR debt raised in 2006 amounting to €18.6 million.

Outlook

The Group confirmed its guidance for 2012. The Eagle transformation plan, presented on July 3rd, 2012, aims at bringing, by 2015, the Group’s profitability close to 10%. According to the initial plan, the Group entered the rollout phase, which will continue over 2013 and 2014.

Next release: Annual results - February 26th, 2013 after closing of the Paris Stock Exchange.

About Devoteam :

Devoteam is an IT consulting group created in 1995, a preferred partner for accompanying the IT transformation of its clients. Combining consulting know-how and technical expertise enables Devoteam to provide its customers with independent advice and effective solutions that meet their industrial objectives.

In 2011, Devoteam achieved revenues of 528M€ and an operating margin of 5.5%. As per December 31st, 2011, the Group consists of 4,857 employees in 23 countries across Europe, North Africa and the Middle East.

ISIN: FR 0000073793, Reuters: DVTM.PA, Bloomberg : DEVO FP. www.devoteam.com

1 Utilisation rate measures the percentage of working hours (excluding paid holidays) of internal potentially billable resources who were actually billed to a client.

Investor Relations:
Gerald Berge, + 33 1 41 49 48 48
Group CFO
finance@devoteam.com
or
Press:
Bastien Rousseau, + 33 1 56 02 35 05
bastien.rousseau@ketchumpleon.fr

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