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  ECONOCOM company press release from 25/04/2019

  25/04/2019 - 17:45

Econocom reports revenue of 623 million euros for the first quarter of 2019, up 3.6%

Q1 2019 revenue

Econocom Group's Q1 2019 revenue stands at €623 million, up 3.6% after the application of IFRS16. Organic growth amounted to 1.6%.

  • Technology Management & Financing (TMF, the leasing business) posted revenue of €221 million, an 11.3% decline. This quarter's performance does not reflect the expected annual trend as the second quarter will benefit from some deferred contracts and the good volume of the current sales pipeline.
  • Since 1st January 2019, the group has had a new reporting segment, Digital Services and Solutions (DSS) which combines the former Services and Products & Solutions segments. With the group establishing itself as a digital solutions integrator – which covers hardware, software and services –the distinction between the two businesses is no longer relevant.

Revenue from Digital Services & Solutions (DSS) reported particularly strong growth in the first quarter (14.1%, 10.8% of which organically), amounting to €402 million. All areas of this segment performed well, particularly distribution and the satellites, and specifically solutions integration. The Planet's IT services maintained a healthy momentum, in a context of strict cost control.

Outlook for 2019

The group plans to achieve 2019 full-year Recurring Operating Profit1 of €128 million at constant scope.

The group is also maintaining its discipline on cash generation and is gradually implementing a savings plan, which is expected to bear fruit mainly in the second half.

Next key dates:

  • The General Shareholders' Meeting will be held on 21st May 2019
  • The 2019 H1 revenue release will be published after the close of trading on 24th July 2019.

(1) Recurring Operating Profit before amortisation of intangible assets from acquisitions

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  Original Source: ECONOCOM