12/11/2018 19:54 |
Devoteam Q3 2018 Revenue : Boosted recruitment and organic growth (+22.4%) see Devoteam revising upwards its guidance for the full year |
INFORMATION REGLEMENTEE
Q3 2018 Press Release
Boosted recruitment and organic growth (+22.4%) see Devoteam revising upwards its guidance for the full year - Q3 2018 revenue of €155.2 million, of which 67% SMACS, growing more than 30% - Devoteam extends its leadership position on Open Source th technologies in Europe with an 8 country certified as “Red Hat Premier Business Partner” Paris, 12 November 2018 Q3 2017 Q3 2017 9m 2017 9m 2017 In millions of euros Q3 2018 9m 2018 restated(1) presented(2) restated(1) presented(2) Revenue 155.2 119.2 125.2 461.7 363.0 381.7 Variation 30.3% 27.2% L-f-l variation(3) 22.4% 19.7% (1) R e s tated in accordance with IFRS 15 re lated to re venu e from contracts with customers. Impact currently being validated by the Group Auditors. (2) I n the FY 2017 press re lease. (3) At com p arable perimeter and exchange rates. Devoteam (Euronext Paris: DVT) reported revenues of €155.2 million for the third quarter of 2018, growing 22.4% compared to the third quarter of 2017, excluding changes in currency and scope. At current exchange rates and perimeter, consolidated revenues increased by 30.3% during the third quarter. It included negative effects of currency for 0.2 point (Turkish lira and Norwegian crown, mainly). The changes in perimeter had a positive impact of 8 points on the quarter growth, with a net contribution to Group revenue of €9.5 million. In line with Scale! 2020 plan, the Group continues to invest in its technological partnerships. Devoteam has been awarded by Salesforce “Platinum Consulting Partner” in France, after only 18 months of partnership. The Group has also become, two years after igniting the partnership with Red Hat, “Premier Business Partner” in an 8th country (Czech Republic). The recent acquisition by IBM confirms Red Hat as a key player in the Cloud and Open Source ecosystem. Devoteam expects to benefit from the new business dynamic that the deal should bring to Red Hat. Analysis of Q3 2018 revenue by region France was the main region driving the Group’s performance. Its revenue grew by more than 30% organically during the third quarter of 2018. It fully benefited from the SMACS market performance, especially on the migration of clients’ legacy infrastructure to the Cloud. The Northern Europe & Benelux region increased its revenue by 14% organically, a slight increase compared to the first half of 2018. Starting 1 October 2018, the region will integrate Jayway, a Creative Technology agency, which is expected to contribute €6 million to Group revenue on the fourth quarter of 2018, slightly higher than the €5 million previously announced. The Central Europe region improved its revenue by more than 20% excluding changes in currency and scope. Following a delay in obtaining the approval from the German anti-trust authorities, Alegri entered the consolidation scope as of 1 September 2018 instead of 1 July 2018 as previously indicated. Taking into account the missing two months of contribution to Group revenue and the current company business dynamic, Alegri should bring around €10 million to the 2018 Group revenue (versus €20 million previously expected). The merge with the existing German business of the Group is launched and should materialize in 2019. This should allow the entity to start growing again in 2020. The Iberia & Latam region increased its revenue by 10.8% organically, driven by Mexico and projects in partnership with Google. Starting 1 September 2018, the region integrated Bold, an entity specialized in Digital Transformation in Portugal. It contributed €2.3 million to Group revenue for the third quarter of 2018; it also brought 22 net recruitments for September 2018, both exceeding initial expectations. Q3 2018 Press Release page 2 Rest of the World increased its revenue by more than 15% organically driven by the Middle East and Tunisia. Headcount and utilization rate On 30 September 2018, the Group employed 6 683 people, including 251 additional employees for the third quarter of 2018 (versus 128 for the third quarter of 2017). This acceleration in headcount growth reflects Devoteam’s attractivity as a specialized company for Digital Transformation as well as its visibility on the market. The attrition rate slightly decreased over the quarter, at 26.7% (versus 28% in the first half of 2018 and in the third quarter of 2017). The ratio of billable headcount to total headcount stood at 86.1% on 30 September 2018, almost stable year on year. During the third quarter of 2018, the utilization rate of internal resources slightly decreased compared to the third quarter of 2017 due to the increase of hiring; it stood at 84%. 2018 outlook Taking into account the third quarter organic growth and despite the delay in the consolidation date of Alegri, the Group revises upwards its annual revenue objective to €650 million, growing almost 27% compared to 2017. This objective reflects: - An organic growth between 17% to 18%; - A negative impact of exchange rates of 0.6%; - A contribution from the acquisitions (net from divestments) between 9 to 10%. The Group confirms its operating margin objective of more than 11% of 2018 revenue. Next press release 2018 full year results: March 12th, 2019 after market closing. Q3 2018 Press Release page 3 Appendix Quarterly revenue by region Q3 2017 9m 2017 In millions of euros Q3 2018 9m 2018 restated restated France 76.6 54.9 232.3 174.5 Variation 39.5% 33.1% L-f-l variation 32.0% 25.8% Northern Europe & Benelux 36.3 31.6 115.3 91.8 Variation 14.8% 25.6% L-f-l variation 14.1% 13.2% Central Europe 20.3 14.4 53.3 42.2 Variation 40.9% 26.2% L-f-l variation 21.6% 19.3% Iberia & Latam 10.5 6.8 26.4 20.7 Variation 54.3% 27.5% L-f-l variation 10.8% 14.1% Rest of the world 10.7 9.3 30.9 28.1 Variation 14.9% 10.3% L-f-l variation 15.8% 17.4% Corporate & other (0.5) 0.2 (2.2) 0.1 Divestments 1.3 1.8 5.6 5.5 Total 155.2 119.2 461.7 363.0 Variation 30.3% 27.2% L-f-l variation 22.4% 19.7% Currency impact -0.2% -0.8% Perimeter impact 8.0% 8.3% O f which im p act of significant acquisitions: In millions of euros Q3 2018 Q3 2017 9m 2018 9m 2017 France 4.1 12.7 D2SI, consolidated as of 1 O ctober 2017 3.5 10.9 Progis, fully consolidated as of 1 January 2018 0.4 1.2 Altius Se rvices, consolidated as of 1 Fe bruary 2018 0.2 0.6 Northern Europe & Benelux 0.3 12.3 TMNS, consolidated as of 1 July 2017 (estimate) 11.9 Paradigmo, consolidated as of 1 July 2018 0.3 0.3 Central Europe 2.8 2.8 Ale g ri, consolidated as of 1 Se ptemb er 2018 2.8 2.8 Iberia & Latam 3.0 3.0 Ne w BIC , consolidated as of 1 July 2018 0.7 0.7 Bold, consolidated as of 1 Se ptember 2018 2.3 2.3 Q3 2018 Press Release page 4 Utilization rate of internal resources Q1 2017 Q2 2017 Q3 2017 Q4 2017 2017 Q1 2018 Q2 2018 Q3 2018 83.2% 84.3% 85.4% 85.3% 84.6% 85.6% 84.4% 84.1% Changes in exchange rates Average rate Average rate For €1 Variation 9m 2018 9m 2017 UAE dirham 4.386 4.091 -6.7% Swiss franc 1.161 1.095 -5.7% Czech koruna 25.574 26.548 3.8% Danish krone 7.450 7.437 -0.2% Pound sterling 0.884 0.873 -1.2% Moroccan dirham 11.161 10.893 -2.4% Mexican peso 22.738 21.009 -7.6% Norwegian krone 9.588 9.236 -3.7% Zloty 4.249 4.265 0.4% Tunisian dinar 3.040 2.651 -12.8% Turkish lira 5.510 4.003 -27.3% US dollar 1.194 1.114 -6.7% Glossary Restated: restated in accordance with IFRS 15 related to revenue from contracts with customers. France: France. Northern Europe & Benelux: Belgium, Denmark, United Kingdom, Luxembourg, Netherlands including TMNS in Switzerland, Germany and Serbia, Norway and Sweden. Central Europe: Austria, Switzerland excluding TMNS, Czech Republic, Germany and Poland. Iberia & Latam: Spain, Mexico, Panama and Portugal. Rest of the world: Middle East, Italy, Morocco, Tunisia and Turkey. Corporate: headquarter activities which cannot be allocated directly to the operational regions, and discontinued operations. Q3 2018 Press Release page 5 Revenue and group contribution: the revenue of a region is the contributive revenue and is defined as the total revenue (internal and external) of the region minus the costs of internal subcontracting. It reflects the contribution of the region to the revenue of the Group produced with own resources. The sum of the contributions of the regions corresponds to the consolidated revenue of the Group. Operating margin: current operating result excluding the amortization of intangible assets resulting from acquisitions and the cost of share-based payments. Like-for-like or l-f-l variation: variation at comparable perimeter and exchange rates. The currency impact is calculated by translating the accounts for year N of subsidiaries having a functional currency different than euro with N-1 exchange rates. The impact of changes in the scope of consolidation is determined: - for the year N acquisitions, by deducting from total revenue N, the amount of revenue generated during year N by the acquired entities; - for the year N-1 acquisitions, by deducting from total revenue N, the amount of revenue generated during year N over the months during which the acquired entities were not consolidated in N-1; - for the year N disposals, by deducting from total revenue N-1, the amount of revenue generated during year N-1 over the months during which the divested entities were no longer consolidated in N; - for the year N-1 disposals, by deducting from total revenue N-1, the amount of revenue generated during year N-1 by the divested entities. 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. SMACS: Social Mobile Analytics Cloud Security. Attrition rate: number of billable employees leaving the Group during the period compared to the average billable headcount over the same period. Q3 2018 Press Release page 6 ABOUT DEVOTEAM Devoteam will achieve yearly revenues of €650 At Devoteam, we deliver innovative technology million in 2018 (e). consulting for business. At Devoteam, we are Digital Transformakers. As a pure player for Digital Transformation of ISIN: FR 0000073793, Reuters: DVTM.PA, leading organisations across EMEA, our 6,500+ Bloomberg: DEVO FP professionals are dedicated to ensuring our clients win their digital battles. With a unique transformation DNA, we connect business and technology. Present in 18 countries in Europe and the Middle East, and drawing on more than 20 years of experience, we shape Technology for People, so it creates value for our clients, for our partners and for our employees. Executive Board Stanislas de Bentzmann, C o - C EO stanislas.de.bentzmann@devoteam.com Financial communication Eve lyn e Broisin, Pe rrin e Angibault, Group controlling & investor re lations Group re p orting & investor re lations Dire cto r Manager e ve lyn e.b roisin@devoteam.com pe rrin e .an gibault@devoteam.com Press contacts Le Public Système C é lin a Da Silva, cdasilva@lepublicsysteme.fr +33 6 16 79 29 32 www.devoteam.com Q3 2018 Press Release page 7 |