EBITDA margin reaches 14.5% in the first quarter of 2018
- Operating Income of 8.8 million euros (vs. 10.2 million euros)
- EBITDA of 1.3 million euros (vs. 1.3 million euros)
- EBITDA Margin 14.5% (vs. 12.7%)
- Net Income of 119 thousand euros (vs. 109 thousand euros)
International Sales represent 39% of the total (vs. 37%)
1. Summary of the Activity
During the first quarter of 2018 (1Q18), Reditus continued the internal reorganization, adjusting its spending structure to the new reality of the Group, and creating the conditions for the development of integrated, innovative and higher value-added offers, in order to follow the business plan based on the development of its core activities and the profitability of its business.
The results in 1Q18, presented below, are compared with the figures for the first quarter of 2017 (1Q17).
Operating Income amounted to 8.8 million euros in 1Q18, reflecting a 13.8% decrease compared to 1Q17.
In the period under review, there was a contraction of income in relation to the same period of 2017, mainly in the ITO segment, due to a very aggressive and competitive market, and Reditus' strategy of not harming its margins and creating value.
However, in 1Q18 Reditus was able to raise new business in its customer portfolio and renew existing contracts in the domestic market in the segments of IT Consulting and BP Outsourcing.
In the international area, income in 1Q18, despite a decrease of 8.3% over 1Q17, increased its weight relative to the Group's overall income, from 37% to 39%.
For the coming months of 2018, the Group expects positive growth in the domestic market and anticipates the beginning of several projects in the international market, and will continue to actively seek opportunities in Nearshore projects.
EBITDA was 1.3 million euros, equivalent to an EBITDA margin of 14.5%, 1.8 pp above the 12.7% margin reached in the same period of last year.
Consolidated Net Income amounted to 119 thousand euros, an increase of 8.5% over the same period of the previous year.