Actusnews Wire - French company specializing in the dissemination of regulated information

  ECONOCOM company press release from 25/07/2023

  25/07/2023 - 17:50

Good resilience of the Group in an unfavourable economic context in H1 2023

Press release

25 July 2023

Good resilience of the Group in an unfavourable economic context in H1 2023.

First half year 2023 in line with expectations in an economic context adversely affected by inflation, rising interest rates and a decline in the digital asset distribution market

  • Revenue up1 3.9% at €1,337 million
  • Operating margin of €44.2 million, or 3.3% of revenue
  • Consolidated Net Profit of €24.7 million

Revenue growth across all businesses. As expected, profitability was impacted by various cyclical effects.

The Econocom Group generated revenue of €1,337 million in the first half of 2023, up1 3.9% compared with the same period in 2022, with all businesses contributing to this growth. On an organic basis, revenue slightly decreased2 by 0.4% due to the P&S business. In an adverse economic context, the Group benefited from the contribution of companies acquired in 2022.

Over the period, trends in continued activities were as follows:

• Products & Solutions (P&S) revenue amounted to €585 million, up1 5.5%. P&S benefited from the successful integration of SEMIC and LYDIS. After strong growth in the first half of 2022, thanks notably to its backlog returning gradually to normal, the business posted a limited organic decline2 of 2.8% in the first half of 2023, in a digital asset distribution market down more than 10% year-on-year and affected by pressure on prices. As a result, Operating margin was €15.9 million, or 2.7% of revenue.

• Technology Management & Financing (TMF) posted revenue of €498 million, an increase1 of 2.8%, or 0.9% on an organic2 basis. As anticipated at the time of the release of Q1 2023 revenue, growth slowed down in the second quarter, with fewer operations generating strong contributions to revenue and margins than in the first half of 2022. However, the commercial prospect for the coming months allows Econocom to aim for a return to a faster-paced growth in the second half. Operating margin was €17.3 million, representing 3.5% of revenue.

• After a slight decline in the first quarter, Services revenue for the six months of 2023 was up 2.6%, purely organic2, at €254 million. However, Operating margin was adversely affected by the increase in personnel costs in the digital industry in 2023, which has been partially passed through for the time being. Operating margin accordingly was €11.0 million, representing 4.3% of revenue. Better recharging of cost increases should enable the Services business to deliver a higher margin in the second half.

Overall, the Group's Operating margin was €44.2 million, representing 3.3% of revenue.

Other operating income and expenses amounted to (€4.7) million, reduced by more than 50% compared to the amount recorded for the same period in 2022.

Net financial expense, impacted mainly by the rise in interest rates (for €3.5 million), amounts to €9.7 million. After a tax expense of €8.4 million and a net profit from discontinued operations of €4.6 million, following the disposal of a P&S business classified as a discontinued operation in 2022, consolidated net profit was €24.7 million for the first half of 2023.

Slight increase in Net Financial Debt3

Net Financial Debt3 was €321 million on 30 June 2023, compared to €272 million a year earlier. The increase was attributable mainly to the purchase of treasury shares, the repayment of share premiums and cash outflows on acquisitions totalling €60 million, plus a temporary increase in working capital requirements.

Operating Debt, i.e. Net Financial Debt3 less expected future receipts from own-booked TMF contracts (€285 million), amounted to €36 million.

2023 outlook 

Despite difficult economic conditions, Econocom maintains its 2023 objectives of both a 5% revenue growth and an improvement in its consolidated net profit for 2023 as a whole.

2024-2028 Strategic Plan

Econocom is currently pursuing the development of its strategic plan with the definition of action plans for each business and region. The Group confirms it will be presented to the financial community at a dedicated Investor Day in November.

Next publication: information meeting on H1 2023 results, 26 July 2023

1 For continuing operations, at constant accounting standards.

2 For continuing operations, at constant scope and accounting standards, including organic growth of acquired companies.

3 Net financial debt including current and non-current financial debt excluding debt resulting from the application of IFRS 16 to leases (premises, vehicles, etc.) for which Econocom is lessee.


Econocom is a digital general contractor (DGC). The group conceives, finances and facilitates the digital transformation of large firms and public organisations. It has 49 years' experience and is the only market player offering versatile expertise through a combination of project financing, equipment distribution and digital services. The group operates in 16 countries, with over 8,750 employees. It made €2,718m in revenue in 2022. Econocom is listed on Euronext in Brussels, on the BEL Mid and Family Business indexes.


Follow us on Twitter ?

Investor and shareholder relations contact:

Financial communication agency contact: +33 1 80 81 50 00


(€m) H1.2022
Revenue 1,286.7 1,337.2
Operating margin 60.0 44.2
Depreciation of acquisition-related intangible assets (1.0) (1.2)
Other operating income and expenses (10.2) (4.7)
Operating profit 48.8 38.3
Other financial income 0.3 0.8  
Other financial expenses (6.5) (10.5)  
Profit before tax 42.6 28.6
Income tax (6.6) (8.4)
Net profit from continuing operations 36.0 20.1
Net result from discontinued operations (2.2) 4.6
Net profit for the period 33.8 24.7
Adjusted net profit 44.8 24.6


(€m) ASSETS 31.12.2022 30.06.2023
Goodwill 554 556
Other long-term assets 212 210
Residual interest in leased assets 165 168
Trade and other receivables 879 854
Other current assets 181 179
Cash and cash equivalents 405 133
Assets held for sale 106 53
TOTAL ASSETS 2,502 2,154
(€m) EQUITY & LIABILITIES 31.12.2022 30.06.2023
Equity attributable to owners of the parent 390 389
Non-controlling interests 67 63
EQUITY 457 452
Bonds 360 209
Financial liabilities 188 245
Commitments on residual value 103 107
Provisions 59 59
Trade payables 932 753
Other liabilities 346 317
Liabilities related to assets held for sale 57 12  

Appendix: Reconciliation between financial data at the end of H1 2022 as reported in the 2022 half-yearly report and data contained in the 2023 half-yearly report.

“H1 2022 reported” corresponds to revenue and Operating margin as presented in the 2022 half-year report.

“H1 2022 restated” corresponds to H1 2022 revenue and Operating margin as presented in the 2023 half-yearly report released today and takes into account changes in discontinued activities as per IFRS 5 and changes in accounting presentations. It serves as the basis for calculating growth rates at constant standards.

“H1 2022 pro forma” corresponds to H1 2022 restated revenue and Operating margin also adjusted for the effects of exchange rates and changes in the scope of consolidation (acquisitions and disposals). It serves as the basis for calculating growth rates at constant standards and scope.

Revenue (€m) Group total TMF P&S Services
H1 2022 reported 1,240 499 493 248
Deconsolidation of discontinued activities and other adjustments for comparability purposes 47 (14) 61 -
H1 2022 adjusted 1,287 485 554 248
Forex change (1) - (1) -
Change in consolidation scope (acquisitions) 58 9 49 -
H1 2022 Pro Forma 1,343 494 602 248


Operating margin in €m Group total TMF P&S Services
H1 2022 reported 58.8 21.6 17.0 20.3
Deconsolidation of discontinued activities and other adjustments for comparability purposes 1.2 - 1.2 -
H1 2022 adjusted 60.0 21.6 18.1 20.3
Forex change - 0.1 - -
Change in consolidation scope (acquisitions) 0.9 0.2 0.8 -
H1 2022 Pro Forma 60.9 21.8 18.9 20.2

This publication embed "🔒 Actusnews SECURITY MASTER".
- SECURITY MASTER Key: mG5qlZttYZiYxptsaphlZmFpam9qm2eca2XJl5aamMyYbZppyGpinMnJZnFilmts
- Check this key:

  Original Source: ECONOCOM