The FY 2019 shows a continued good operational performance of the Reditus Group, representing a significant improvement in the EBITDA margin over the same period in 2018.  

 

The success of the strategy implemented by the Group, with its internal reorganization and focus on core activities, together with a recovery of the economy, the implementation of digital transformation projects by a number of corporations and the effects of the Brexit, have opened a range of opportunities for several Reditus’ business sectors throughout the year.  

 

The operational indicators of the Reditus Group registered a positive evolution compared to the previous period, as evidenced by the positive variation in EBITDA margin and in Operating Income. EBITDA was 4.0 million Euros in 2019, compared to 4.5 million in the same period of the previous year. In spite of a decrease in absolute value, the EBITDA margin reached 16.3%, which represents 2.4 pp above the value registered in 2018 and an improvement of 4.7 pp in relation to 2017. 

 

The Net Result was positive by 49 thousand Euros, revealing a positive variation of 3.1 million Euros over the same period of the previous year. This result was positively impacted by the rationalization of expenditures, namely personnel costs, external supplies of goods and services, and financial costs.  

 

Operating Revenue decreased by 24.8% to 24.4 million Euros, vv. 32.4 million Euros in the previous year. This reduction in Revenue negatively impacted the Group's EBITDA by 11.8%, when compared with 2018. 

The reduction in Revenue affected all 3 business segments:  

 

The ITO sector suffered slightly more than the others, with a 20.3% contraction. The Group has 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. These ITO sector results are mostly the reflection of a drop in international revenues and of a focus on higher value-added projects. While this strategy led to a drop in revenues for the segment, it afforded an improvement in EBITDA and in EBITDA margin. 

 

The IT Consulting sector registered a 13% revenue contraction. EBITDA and EBITDA margin, albeit negatively affected, were able to register positive values of respectively 1.04 M€ and 6.4%.  

 

The BPO sector has also suffered a 13% revenue contraction and its EBITDA and EBITDA margin, while also negatively affected, registered positive values of respectively 542 K€ and 5.2%. 

 

In the International Area, revenue decreased by 34.8% in 2019 compared to 2018, reducing its weight relative to the Group's overall revenue from 41% to 35%. With a value in excess of 8.5 million Euros, it continues to reflect the commitment of Reditus to its business in international geographies, and the sustainability of long-term projects in the area of ITC and ITO.  

 

The Group's expectations for the coming year include actively pursuing new opportunities in the international market, as well as in Nearshore projects.