Econocom reports revenue of 623 million euros for the first quarter of 2019, up 3.6% (AcT)

Q1 2019 revenue

Econocom Group's Q1 2019 revenue stands at €623 million, up 3.6% after the application of IFRS16. Organic growth amounted to 1.6%.

• Technology Management & Financing (TMF, the leasing business) posted revenue of €221 million, an 11.3% decline. This quarter's performance does not reflect the expected annual trend as the second quarter will benefit from some deferred contracts and the good volume of the current sales pipeline.
• Since 1^st January 2019, the group has had a new reporting segment, Digital Services and Solutions (DSS) which combines the former Services and Products & Solutions segments. With the group establishing itself as a digital solutions integrator – which covers hardware, software and services –the distinction between the two businesses is no longer relevant.

Revenue from Digital Services & Solutions (DSS) reported particularly strong growth in the first quarter (14.1%, 10.8% of which organically), amounting to €402 million. All areas of this segment performed well, particularly distribution and the satellites, and specifically solutions integration. The Planet's IT services maintained a healthy momentum, in a context of strict cost control.

Outlook for 2019

The group plans to achieve 2019 full-year Recurring Operating Profit1 of €128 million at constant scope.

The group is also maintaining its discipline on cash generation and is gradually implementing a savings plan, which is expected to bear fruit mainly in the second half.

Next key dates:

• The General Shareholders' Meeting will be held on 21^st May 2019
• The 2019 H1 revenue release will be published after the close of trading on 24^th July 2019.

⁽¹⁾ Recurring Operating Profit before amortisation of intangible assets from acquisitions

Source : Actusnews