Steria Q3 2014 results
Consolidated revenue in the first nine months of 2014
|
In € million |
9-months 2013 |
9-months 2014 |
Growth |
| Revenue |
1,286.1 |
1,395.2 |
8.5% |
| Change in consolidation scope |
0.0 |
|
|
| Currency variation |
15.2 |
|
|
| Pro-forma revenue |
1,301.3 |
1,395.2 |
7.2% |
2014 nine-month revenue by geographical area
|
In € million |
9-months 2013* |
9-months 2014 |
Organic growth |
| United Kingdom |
528.0 |
640.3 |
21.3% |
| France |
413.7 |
396.0 |
-4.3% |
| Germany |
179.2 |
160.1 |
-10.7% |
| Other Europe |
180.4 |
198.8 |
10.2% |
| Total |
1,301.3 |
1,395.2 |
7.2% |
* Like-for-like revenue (basis 2014)
Q3 2014 revenue by geographic area
|
In € million |
Q3 2013* |
Q3 2014 |
Organic growth |
| United Kingdom |
172.9 |
215.6 |
24.7% |
| France |
135.0 |
127.7 |
-5.4% |
| Germany |
60.4 |
51.2 |
-15.1% |
| Other Europe |
55.4 |
59.9 |
8.1% |
| Total |
423.7 |
454.4 |
7.3% |
* Like-for-like revenue (basis 2014)
Business in Q3 2014
In the third quarter 2014, business was boosted by the Public Sector where growth reached +25.0% whereas the telecommunications/utilities/transport sector decreased by-4.9% and the Finance sector declined by 11.4%.
In terms of service lines, Business Process Outsourcing rose by 52.1%. IT infrastructure management and application services (consulting, systems integration, application maintenance and testing) were down by 2.4% and 2.8% respectively.
In the United Kingdom, business remained extremely robust, recording a like-for-like revenue growth of +24.7%. Growth was particularly strong in the Public Sector, boosted notably by SSCL’s operations, as well as in the Defence (+7.6%) and Homeland Security (+37.4%) sectors.The telecommunication/utilities/transport sector also performed well(+5.4%) whereas there was a decline in the finance sector.
Business Process Services, which account for 53% of the revenue in the UK, recorded a growth of +52% in the period. The future opportunities in this business area are still significant, and some of them could be materialised during the fourth quarter.
In France, given the rather sluggish environment and one billable day lessthan the previous year (accounting for -1.5%), revenue growth in the third quarter was somewhat disrupted by the preparation of the merger with Sopra and declined by 5.4%. The banking sector remained stable but the telecommunication/utilities/transport sector and the public sector showed a downward trend.
With the exception of the Ecotaxe project whose status needs to be clarified with Ecomouv’ and the French State following the recent announcement of suspension by the government, all of the contract renewals scheduled in 2014 have been achieved. In this context, revenue growth is expected in Q4 2014.
In Germany, the situation remained difficult, and revenue declined by 15.1%. The appointment of a new management team in 2013 and the change in the historical business model generated an increase in the attrition rate and the departure of some consultants, leading to revenue decrease estimated at more than 10% for the entire financial year 2014. Specific actions aimed at mobilising and retaining teams were undertaken with anobjective to stabilise the situation during the financial year 2015.
In the Other Europe zone, the organic growth in revenue was +8.1% benefiting from solid growth in Scandinavia. The public sector (+14.2%) and the telecommunication/utilities/transport sector (+4.3%) showed an upward growth trend.
Outlook
Owing to operational issues, mainly in Germany, the Group will be unable to meet its operating margin target for 2014 and anticipates a slightly negative net attributable profit for the financial year.
