- Revenue rose 11.2% to €1,929 million.
- 6.9% organic growth, compared with 2.4% in the first half.
- Presentation of the 5-year strategic plan, “e-for-excellence,” aiming for another twofold increase in recurring operating profit to €300 million and revenue of €4 billion by 2022.
business update as of 30 september 2017
Econocom, a European player specialising in the digital transformation of organisations, posted revenue of €1,929 million for the first nine months of 2017, compared with €1,735 million in September 2016, i.e. a 11.2% rise in reported data, 6.9% of which was organic.
- Technology Management & Financing reported revenue of €827 million, which has remained virtually flat (-0.3 %) compared with the same period in 2016. The business line grew by 3.1% in the third quarter.
- Services, which posted revenue of €701 million over nine months, was up 21.4%, 12.5% of which was organic. It benefited from the ramp-up of major managed services contracts and the substantial development of solutions integration, which was recently bolstered by the arrival of Aciernet in the group, and which has contributed €122 million to consolidated revenue.
- Products & Solutions reported revenue of €401 million over nine months, a 22.3% increase, 13.7% of which organically. The business line is thus continuing the growth momentum of the first half, driven in particular by the enterprise-multimedia segment and the public sector.
Just before launching its new strategic plan, the Group points out that the structure of its revenue is changing. Its three core businesses are increasingly being sold as integrated digital offers combining all or part of its expertise. These offers are currently recognised in one of its historic businesses depending on, for example, the client’s contractual choices, which has an impact on the monitoring of the economic performances of each activity. These comprehensive solutions are progressing at a significant rate (around 10%). They should be worth around €500 million in 2017, €50 million of which will be for pay-per-use, fee-based contracts.
Presentation of the “E for Excellence” strategic plan
On 3 October 2017, Econocom presented its 5-year strategic plan, “e for excellence”, which is firmly focused on value and profitability and aims to:
- Double Recurring Operating Profit to €300 million;
- Achieve revenue of €4 billion by 2022.
The presentation of the plan and the webcast of the event are available on the company website.
In line with the ambition stated at the beginning of 2017 and confirmed during the Investor Day on 3 October, Econocom has strengthened its offering in the United Kingdom and Germany:
- In the UK, after an initial acquisition announced in early May in the distribution of digital solutions in the education sector (JTRS), Econocom is now breaking into the mobility services segment, which is central to digital transformation projects, by acquiring 85% of Jade Solutions at the end of July.
- In Germany, the group has acquired 80% of Energy Net, a B2B Apple solutions distributor and integrator. This acquisition will further strengthen the group’s partnership with Apple in Europe and enables it, through synergies with the leasing business (TMF), to launch innovative solutions on the German market combining hardware, applications and services, charged as a fee.
Several other transactions have been carried out since the end of the first half:
- Exaprobe, an Econocom Group satellite, acquired 51% of Aciernet, a French integrator of network and security solutions with specific expertise in large data centres.
- On 19 September Econocom announced it was consolidating its position in the data market by acquiring BiBoard’s business, a software company that has developed an innovative Business Intelligence solution.
- In addition, the group has reached an agreement with Georges Croix to buy out his minority stake in Digital Dimension. Econocom now owns 100% of the company’s share capital.
In light of the revenue trend and the level of the pipeline, the group’s Management is confident it will achieve its target for sustained organic growth (in excess of 5%) in revenue.
The entire group is focusing its efforts on profitability: the fourth quarter will be, as every year, crucial for achieving its recurring operating profit growth targets.
Next publication: the 2017 full-year revenue release will be published after the close of trading on 24 January 2018.