Good resilience of the Group in an unfavourable economic context in H1 2023.

press releases
published on 07/25/2023

First half year 2023 in line with expectations in an economic context adversely affected by inflation, rising interest rates and a decline in the digital asset distribution market

  • Revenue up1 3.9% at €1,337 million
  • Operating margin of €44.2 million, or 3.3% of revenue
  • Consolidated Net Profit of €24.7 million 


Revenue growth across all businesses. As expected, profitability was impacted by various cyclical effects.

The Econocom Group generated revenue of €1,337 million in the first half of 2023, up1 3.9% compared with the same period in 2022, with all businesses contributing to this growth. On an organic basis, revenue slightly decreased2 by 0.4% due to the P&S business. In an adverse economic context, the Group benefited from the contribution of companies acquired in 2022.

Over the period, trends in continued activities were as follows:

• Products & Solutions (P&S) revenue amounted to €585 million, up1 5.5%. P&S benefited from the successful integration of SEMIC and LYDIS. After strong growth in the first half of 2022, thanks notably to its backlog returning gradually to normal, the business posted a limited organic decline2 of 2.8% in the first half of 2023, in a digital asset distribution market down more than 10% year-on-year and affected by pressure on prices. As a result, Operating margin was €15.9 million, or 2.7% of revenue.

• Technology Management & Financing (TMF) posted revenue of €498 million, an increase1 of 2.8%, or 0.9% on an organic2 basis. As anticipated at the time of the release of Q1 2023 revenue, growth slowed down in the second quarter, with fewer operations generating strong contributions to revenue and margins than in the first half of 2022. However, the commercial prospect for the coming months allows Econocom to aim for a return to a faster-paced growth in the second half. Operating margin was €17.3 million, representing 3.5% of revenue.

• After a slight decline in the first quarter, Services revenue for the six months of 2023 was up 2.6%, purely organic2, at €254 million. However, Operating margin was adversely affected by the increase in personnel costs in the digital industry in 2023, which has been partially passed through for the time being. Operating margin accordingly was €11.0 million, representing 4.3% of revenue. Better recharging of cost increases should enable the Services business to deliver a higher margin in the second half.

Overall, the Group’s Operating margin was €44.2 million, representing 3.3% of revenue.

Other operating income and expenses amounted to (€4.7) million, reduced by more than 50% compared to the amount recorded for the same period in 2022.

Net financial expense, impacted mainly by the rise in interest rates (for €3.5 million), amounts to €9.7 million. After a tax expense of €8.4 million and a net profit from discontinued operations of €4.6 million, following the disposal of a P&S business classified as a discontinued operation in 2022, consolidated net profit was €24.7 million for the first half of 2023.

Slight increase in Net Financial Debt3

Net Financial Debt3 was €321 million on 30 June 2023, compared to €272 million a year earlier. The increase was attributable mainly to the purchase of treasury shares, the repayment of share premiums and cash outflows on acquisitions totalling €60 million, plus a temporary increase in working capital requirements.

Operating Debt, i.e. Net Financial Debt3 less expected future receipts from own-booked TMF contracts (€285 million), amounted to €36 million.

2023 outlook 

Despite difficult economic conditions, Econocom maintains its 2023 objectives of both a 5% revenue growth and an improvement in its consolidated net profit for 2023 as a whole.

2024-2028 Strategic Plan

Econocom is currently pursuing the development of its strategic plan with the definition of action plans for each business and region. The Group confirms it will be presented to the financial community at a dedicated Investor Day in November.


Next publication: information meeting on H1 2023 results, 26 July 2023



1 For continuing operations, at constant accounting standards.

2 For continuing operations, at constant scope and accounting standards, including organic growth of acquired companies.

3 Net financial debt including current and non-current financial debt excluding debt resulting from the application of IFRS 16 to leases (premises, vehicles, etc.) for which Econocom is lessee

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