Reditus Improves 1st Half 2020 Net Income to 168 thousand Euros
- Net Income of 168 thousand Euros
- Operating Revenue of 10,0 million Euros
- EBITDA of 1,3 million euros
- EBITDA Margin of 12.8%
- International Sales represented 25% of total
1. Summary of the Activity
Consolidated Net Income reached 168 thousand Euros, a 96.5% improvement over the same period of the previous year.
EBITDA reached 1,3 million Euros in 1H20, which compares with € 2,0 million in the same period last year. This value represents nevertheless a 12.8% EBITDA margin.
During this period, Operating Revenues suffered a 19.1% decrease, reaching 10,0 million Euros against €12,4 million in 1H19.
This Revenue reduction is due to a significant contraction in the ITC sector’s activities, as well as to a – albeit smaller – contraction in the ITO sector.
The ITO sector, although suffering a 15.1% contraction, nevertheless registered an improvement in its EBTIDA and also a 2.1 pp increase in the EBITDA margin, with 18.0% against 15,9% in the same period of the previous year. This contraction is a direct result of the present pandemic, which has compromised the conclusion of several export service projects. The Group has on the other hand been developing a strategy to obtain new, smaller but more profitable projects. As a result, new businesses were awarded in this period not only in installed-base customers, renewing existing contracts, but also with new clients.
The drop in Revenues for the ITC sector is significant and mostly the reflection of a drop in international projects and of a focus on higher value-added projects. This strategy led to a drop in revenues for the segment in the 1 Half of the current year.
In the International Area, 1H20 Revenues decreased by 42.5% compared to 1H19, reducing its weight relative to the Group's overall revenue from 36% to 25% as a result of the present pandemic and due to the postponement of investment decisions for strategic Public Sector projects, in Portugal but mainly abroad.
In addition, the impact of the COVID19 pandemic is the main justification for the revenue contraction in the ITC segment, namely in the international markets such as the African geographies where the group has been operating and where it has been obtaining positive results. In these geographies, the implementation of numerous security and quarantine procedures, of extended lock-downs, the imposition of state of emergency and of calamity measures, have led the group to activate its contingency plan and to take immediate steps for the repatriation of expatriates and the temporary suspension of some projects.
With Revenues in excess of 2,5 million Euros in International Markets, Reditus will definitely maintain its commitment to the business in international geographies and to the sustainability of long-term projects in the area of ITC and ITO for a range of entities.
For the remaining of 2020 and despite the persisting uncertainty resulting from the on-going public health problems, it is worth noting that new challenges and opportunities began to emerge, for which the Group was prepared, so it expects positive growth with the award and kick-off of some strategic and large-scale projects, in the final contract stages or already awarded, both in the national and international markets. These new opportunities have already started to materialize during the third quarter of the current year and Reditus will, in addition to their implementation, still actively search for opportunities in Nearshore projects.