Integration and the synergic activities started in the markets in which Exprivia and Italtel operate
The first half of the year confirms the trends of the strategic plan of Exprivia and Italtel
- Revenues: euro 286.8 mln (75.7 mln in 2017, 290.2 mln pro-forma*)
- EBITDA: euro 8.0 mln (4.9 mln in 2017, 4.5 mln pro-forma*)
- EBIT: euro -1.5 mln (2.6 mln in 2017, -3.1 mln pro-forma*)
- Profit before tax: euro -13.0 mln (0.8 mln in 2017, -10.4 mln pro-forma*)
- Net Financial Position: euro -211.3 mln (-222.8 mln at 31 December 2017)
August 3, 2018 – The Board of Directors of Exprivia – a company listed on the STAR segment of Borsa Italiana [XPR.MI] – approved today the half year financial statements at 30 June 2018, prepared in accordance with International Accounting Standards (IAS / IFRS).
Banking, Finance & Insurance market grew, up 26.4%, thanks to the contribution of the branch dedicated to system services for banks and financial companies acquired in the second half of 2017, and to the contribution of Italtel’s Digital Infrastructure component. Telco & Media market declined, -9.0%, due to the slowdown in the Service Provider market in Italy and to the temporary slowdown of the renewal project of the TIM Optical Packet Metro (OPM) network. Energy & Utilities market held up, + 3.2%, and recorded revenues in line with the corresponding period of 2017. Aerospace & Defense market declined, by -16.0%, in the context of reorganization and strong attention to the reduction of the spending by the main corporations and industries in the sector. Retail & Manufacturing market grew significantly, + 35.2%, driven by the success of Cloud solutions and the boost of Industry 4.0. Revenues from the Healthcare sector increased, + 14.8%, despite a context of healthcare expenditure restraint. Public Sector market declined, 6.5%, due to the cycles of the public procurement proceedings. Revenues from International Markets remained stable, despite of political and macroeconomic context with some stress in Latin American countries, especially in Argentina, where the climate of general uncertainty caused a delay in many of the planned investments and the currency devaluation of the Argentine currency led to exchange losses of 2.4 million euros, which affect the group’s profit before tax.
Excluding the subsidiary Italtel, the Exprivia group closed the first half at 30 June 2018 with revenues of 78.9 mln, + 4.2% compared to 75.7 mln in 2017; EBITDA at 6.1 mln compared to 6.3 mln adjusted in 2017; EBIT at 4.0 mln compared to 3.9 million mln adjusted in 2017; Profit before tax at 1.9 mln compared to the 2.7 mln adjusted in 2017. The net financial position, with the same consolidation perimeter, is equal to -58.9 mln, compared to -58.4 mln at 31 December 2017.
The group headed by Italtel closed the first half with revenues of 210.4 mln compared to 216.6 mln in 2017; EBITDA at 1.9 mln, compared to -1.3 mln in 2017; EBIT negative at -5.5 mln compared to -6.6 mln in 2017; Profit Before Tax negative at -14.9 mln compared to -11.8 mln in 2017. The Net Financial Position is improving at -152.7 mln, compared to -164.5 mln as at 31 December 2017.
Domenico Favuzzi, president and CEO of Exprivia declared: “We close the first half of the year with the first results of the boost to integration and synergies in the markets in which Exprivia and Italtel operate, as we announced last 12 July, with the presentation to the financial community of the Strategic Plan, based on the ability to evolve the digital business model of companies to help define new business strategies. The financials of the first half of the year record results in line with the plans, but above all confirm the start of the path designed for the next few years, which is already directed towards the synergical convergence of cultures and approaches. For this reason, despite some signs of volatility in the global macroeconomic situation, we continue to look with optimism at the second part of 2018“.
Stefano Pileri, CEO of Italtel, declared: “In the first half of 2018 the spread of our proprietary products and of our solutions in the markets in which we operate continued, with promising dynamics in particular in sectors such as Cyber Security. The policy aimed at spreading the digitization of companies, has also recorded an excellent performance in the Enterprise market and a significant acceleration of the Ultra Broadband projects for the so-called ‘white areas’. We believed that the continuous stimulus in favor of digital transformation processes can give a further acceleration to investments, with certain benefits for the entire production of the country “.
Holding Company result
At June 30, 2018 the revenues of Exprivia S.p.A. amounted to 64.3 mln, an increase of 3.8% (**) compared to the same period of 2017 equal to 61.9 mln, EBITDA at 5.1 mln compared to 5.7 mln (*) in 2017. EBIT at 3.8 mln, equal to 6.0% of revenues, compared to 2.5 mln (**) of the previous year. The Profit Before Tax at 2.6 mln, 4.1% of revenues, compared to 1.7 mln (**) for the same period of 2017. The Net Financial Position at June 30, 2018 is negative at -48,0 mln compared to -48.5 mln (**) as at 31 December 2017.
(*) The pro-forma data that simulate the consolidation of Italtel at 30 June 2017 are taken from the information document relating to the acquisition of the investment in Italtel, to which reference is made for the description of the principles adopted.
(**) Data for the year 2017 of the parent company are provided pro-forma by projecting the effects of the merger into the parent company of the major subsidiaries, which took place last 30 November, on the financial statements as at 30 June 2017.
Pursuant to Article 154 bis, second paragraph, of Testo Unico della Finanza, the executive manager responsible for preparing the corporate accounts, Mr. Valerio Stea, states that the financial report in this press release contains and matches the documentary records, books and accounting records.
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