Reditus’ EBITDA increases 76.9% in 2017
- EBITDA of EUR 4,9 million (vs. EUR 2.8 million in 2016)
- EBITDA margin of 11.6% (vs. 6.1% in 2016)
- Net Loss of EUR 1,6 Million (vs. EUR 2,9 Million loss in 2016)
- Operating Revenue of EUR 42,0 Million (vs. EUR 44,9 Million in 2016)
- International Sales represent 46% of total (vs. 39% in 2016)
1. Summary of the Activity
The 2017 results show a continued good operational performance of the Reditus Group, representing a significant improvement over the previous year.
Reditus Group’s main performance indicators register a remarkable evolution compared to the previous period, as evidenced by the positive variation registered in the EBITDA that reached approx. 4,9 million euros in 2017, against 2,8 million euros in 2016. The Net Income remained nevertheless negative at 1,6 million euros, despite representing a positive variation of 1,3 million euros relative to the previous year. This result was negatively influenced by non-recurring factors, namely Losses relating to Provisions and Impairments amounting of 0,8 million euros, and Net Present Value of Customer Receivables amounting to 0,8 million euros.
The successful strategy followed by the Group, comprising an internal reorganization and a focus on core activities - centred on innovative and higher value added offers – have, together with on-going efforts on rationalization of operating costs and overheads, afforded an increased profitability of the business and explains the positive evolution of the results.
Although Operating Revenue shows a 6.3% decrease to 42,0 million euros - compared to 44,9 million euros in previous year – the improvement in contribution margins of the different Group operations lead to a 76.9% YOY increase in EBITDA.
The revenue contraction derives mainly from the BPO segment of the Client Services sector, and reflects the term of a large contract from the previous year and which the Group has consistently been replacing for others of equivalent value and increased profitability. We were as a result able to obtain several contracts from within our installed customer base, both new and renewals of existing contracts, and also to acquire new clients, all of which will contribute to better results of the BPO segment through the coming periods.
The IT Consulting sector was the main contributor to the Group's improved results, showing positive growth in both Revenues and EBITDA, with new clients and renewals of existing contracts in the domestic market.
Revenue for the International Sector registered a growth of 9.9% YOY, with its weight increasing from 39% to 46% relative to the Group's overall Revenue. The strategic commitment to the African market, with a focus on the three geographies where the Group has subsidiaries namely Angola, Mozambique and Equatorial Guinea, has led to a growth in business volume due to the beginning of new projects and to the continuation of those where the Group has already an on-going history.
The Group expects to continue actively searching for new international market opportunities in those geographies during the coming months, as well as for Nearshore projects, with the aim at consolidating its business growth.
EBITDA reached 4,9 million euros, equivalent to an EBITDA margin of 11.6%, or 5.4 pp above the 6.1% margin reached in the previous year.
Net Income from Continued Operations was negative and amounted to 1,6 million euros, an improvement of 1,1 million euros over the previous year when a negative value of 2,7 million euros had been registered.