The FY 2018 shows a continued good operational performance of the Reditus Group, representing a significant improvement in the EBITDA margin over the same period in 2017,

The success of the strategy implemented by the Group, with its internal reorganization and focus on core activities while betting on innovative and higher value-added offers, coupled with the on-going efforts to rationalize operating and structure costs, afforded an increased profitability of the business.

The operational indicators of the Reditus Group registered a positive evolution compared to the previous period, as evidenced by the positive variation in the EBITDA margin. In 2018 EBITDA was 4.5 million euros, compared to 4.9 million in the same period of the previous year. This is however equivalent to an EBITDA margin of 13.9%, representing 2.3 pp above the value registered in 2017 and an increase of this ratio by more than 100% since 2016.

However, the net result was negative by 3.8 million euros, registering a negative variation of 2.2 million over the same period. This result was affected by non-recurring factors, such as provisions and impairment losses in the amount of 1.5 million euros and a Net Present Value of amounts receivable from customers amounting to 0.849 million euros.

Operating Revenue decreased by 22.8% to Euro 32.4 million, vv. Euro 42.0 million in the previous year. This reduction in Revenue negatively impacted the Group's EBITDA by 7.4%, compared with 2017.

The Revenue reduction derives mainly from the ITO and ITC segments. In the case of the ITC area, this reduction reflects the contractual expiration of a sizable contract, resulting from a customer decision to internationally align its supply of Outsourcing services. 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.

The ITO area results are mostly a reflection of a drop in international revenues, derived from the delay of a relevant project in Angola.

The IT Consulting area contributed the most to the improving in Group's results, with positive growth in revenues and EBITDA resulting from the acquisition of new customers and the award of new projects, with higher margins, in the domestic market.

In the international area, Revenue in 2018 decreased by 31.7% compared to 2017, reducing its weight relative to the Group's overall Revenue from 46% to 41%. With a value in excess of 13 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 for various Organizations.

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