The 9M19 results, presented below, are compared with the figures for the first nine months of 2018 (9M18).

 

Operating Revenues amounted to 18.0 million euros in 9M19, reflecting a 27.6% decrease compared to the same period in 2018.

 

The revenue contraction, when compared to the same period of the previous year, results from a strategic decision to focus commercial efforts on projects with higher added value.

 

Despite the reduction in 9M19 revenue, Reditus was awarded new contracts which, despite a representing a lower revenue, present a higher profitability, and was able to advantageously renew several contracts in the IT Consulting and BPO segments.

 

In 9M19, revenues from the international area decreased by 37.7% compared to 9M18, as a result of investment postponements by the clients. These decisions reflect the slow economic recovery in those geographies, impacting their weight on the Group's overall revenues. We are working proactively with the markets and we expect those international projects in the ITO and ITC areas to be about to initiate.

 

The Group foresees a positive growth throughout the end of 4Q19, with the expected start of the mentioned international projects, while actively pursuing efforts to close various portfolio opportunities, including Nearshore projects.

 

EBITDA reached 2.7 million euros, equivalent to an EBITDA margin of 14.9%, or 1.9 pp above the 13.0% margin achieved in the same period last year.

 

Consolidated Net Income amounted to a negative 156 thousand euros, an improvement of 266 thousand euros when compared with the same period of the previous year.

 

During the first half of 2019 (1H19), Reditus pursued the development of its integrated and higher value-added offer strategy, the sustainability of its operations through continuous monitoring and improvement methods which, together with the development of management models comprising the introduction of robotization elements, contributed to an increase in the profitability of its projects and to an improvement of the EBITDA margin, with particular emphasis on BPO businesses.

 

During the first quarter of 2019 (1Q19), Reditus continued its strategy of developing integrated, innovative and value-added offerings, the sustainability of operations through continuous monitoring and improvement, as well as the development of management models with introduction of robotization components. This strategy allowed an increase in the profitability of the projects and an improvement of the EBITDA in the ITO segments with particular emphasis on BPO.

The 1Q19 results hereunder are compared with those relating to the 1^st quarter of the previous year (1Q18).

Operating Revenue reached 6.2 million euros in 1Q19, or a 30% decrease against 1Q18.

In the period under analysis, there was a contraction of revenues in relation to the same period of the previous year, mainly in the ITO segment which results from an aggressive and competitive market and Reditus' strategy of not compromising its business margins and creation of value.

This contraction was more significant in the ITC segment due to the delay in the start of large projects in the international area, namely in Angola.

In the international area, revenues in 1Q19 decreased by 8.3% compared to 1Q18, due to the delay in the beginning of projects. Its weight relative to the Group's overall income fell from 39% to 32%.

For the following months of 2019, the Group expects a positive growth in the domestic market and plans the start of several projects in the international market, while actively pursuing business opportunities in Nearshore projects.

EBITDA reached 0.8 million euros, which corresponds to an EBITDA margin of 12.4%, or 2.1 pp below the 14.5% margin obtained in the same period of the previous year.

The consolidated Net Loss reached 43 thousand Euros, a decrease of 63.9% over the same period of the previous year.

 

 

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.

 

During the first half of 2018 (1H18), Reditus pursued its internal reorganization, adjusting the 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 fulfil the business plan based on the development of its core activities and the profitability of its business.

 

The 1H18 results hereunder are compared with those relating to the 1st half of the previous year (1H17). 

 

Operating Revenue reached 17.6 million euros in 1H18, or a 15,5% decrease against 1H17.

 

We assisted during this period to a contraction in revenues when compared with the same period of the previous year, due to Reditus’ strategy of not jeopardizing its margins and value creation in face of a very aggressive and competitive marketplace. 

 

Reditus has nevertheless been able to obtain new businesses from within its client portfolio, which present higher margins in spite of lower revenues, and has been able to renew contracts in the domestic market in the IT Consulting and BP Outsourcing segments. 

 

In the International Area 1H18 revenues, although presenting a 18.4% decrease from 1H17, maintained their relative weight in face of the overall Group revenues. 

 

The Group expects a positive development in the course of the forthcoming months, with several projects to be initiated abroad and an active pursuit of Nearshore project opportunities.

 

EBITDA reached 2.6 million euros, which corresponds to a EBITDA margin of 14.9%, or 2.7 pp above the 12.2% margin obtained in the same period of the previous year. 

 

The consolidated Net Income reached 60 thousand euros, a 6.4% decrease over the same period in 2017.