IBS Group Reports Operating Results for the Quarter and Nine Months Ended
December 31, 2012
RAMSEY, The Isle of Man, March 4, 2013
RAMSEY, The Isle of Man, March 4, 2013 /PRNewswire/ --
Please refer to the relevant legal information at the end of this document
IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software developer
and IT services provider in Central and Eastern Europe, today announced its
preliminary unaudited operating results for the third quarter of the financial
year ending March 31, 2013 as well as the nine month period ending December
31, 2012 (3Q and 9M FYE March 31, 2013).
9M FYE March 31, 2013 highlights
*Consolidated revenues totaled US$672.0 mn, a 6.1% increase y-o-y, with
comparable revenues* growth of 11.6% y-o-y.
*Revenues in the IT Services segment came to US$390.5 mn up 1.6% y-o-y.
Segment's comparable revenues* growth amounted to 10.6% in US$ terms and
12.8% in Russian Ruble terms.
*Revenues in the Software Development segment amounted to US$228.5, up by
15.1% in US$ terms and 19.3% in constant currency terms.
*Revenues generated in Europe and North America amounted to US$214.4 mn,
and now account for 31.9% of consolidated Group revenues against 29.4% a
*Our headcount reached 8,473, as we added 482 IT professionals. The
increase was driven by the expansion of the delivery centers in Software
*Total debt amounted to US$54.3 mn, a decline of US$1.5 mn y-o-y. Net debt
position came to US$12.9 mn, down US$3.7 mn y-o-y.
*Consolidated revenues growth guidance for FYE March 31, 2013 is reiterated
to be in the range of 9-13% in US$ terms.
* Comparable revenues defined as revenues that exclude results of OOO Borlas
Group for the FYE March 31, 2012.
Consolidated revenues by segment ^[ ^* ^] ^, ^[ ^* ^* ^]
3Q FYE 3Q FYE 9M FYE 9M FYE
March March March March
31, 31, Change 31, 31, Change
US$ mn 2013 2012 y-o-y 2013 2012 y-o-y
revenues 294.1 276.6 6.3% 672.0 633.2 6.1%
(ex-disposals) 294.1 264.7 11.1% 672.0 602.0 11.6%
segment 189.7 187.0 1.4% 390.5 384.3 1.6%
(ex-disposals) 189.7 174.8 8.5% 390.5 353.2 10.6%
segment, RUB mn .
(ex-disposals) 5 603 5 490 +2.1% 11 974 10 617 12.8%
segment 83.3 70.7 17.9% 228.5 198.5 15.1%
change 18.5% 19.3%
other 21.1 18.9 11.6% 53.0 50.4 5.2%
* Source: management accounts.
** Revenues (ex-disposals) exclude results of OOO Borlas Group for FYE March
Consolidated revenues for the first nine months of FYE March 31, 2013 totaled
US$672.0 mn, an increase of 6.1% y-o-y, and consolidated revenues growth
ex-disposals of 11.6% y-o-y. Consolidated revenues for the third quarter of
FYE March 31, 2013 amounted to US$294.1 mn, an increase of 6.3% y-o-y, and
consolidated revenues growth ex-disposals of 11.1% y-o-y.
IT Services segment revenues for the first nine months of FYE March 31, 2013
amounted to US$390.5 mn, up 1.6% y-o-y. We adjust segment revenues for the
disposal of OOO Borlas Group which added US$31.1 mn of revenues in the nine
months of FYE March 31, 2012 (In February 2012 the Group exchanged 100% of
OOO Borlas Group shares for 14.09% of shares in IBS IT Services subsidiary,
raising effective ownership in the segment to 97.02%). Segment revenues growth
ex-disposals amounted to 10.6% in US$ terms and 12.8% in Russian Ruble terms.
Infrastructure related projects remained major drivers of our revenues in the
Software Development segment revenues for the nine months of FYE March 31,
2013 were US$228.5 mn, an increase of 15.1% y-o-y. The segment's revenues in
constant currency* increased by 19.3% and 18.5% y-o-y, in the nine months and
third quarter of FYE March 31, 2013, respectively. Revenue growth in the
segment was mainly attributable to new clients and increase in recurring
business within Financial Services and Automotive & Transport verticals.
* Constant currency revenues are calculated based on a weighted average of
actual daily exchange rates for previous periods.
Consolidated revenues by geography *
9M FYE Share 9M FYE Share Change
March of March of in
31, total 31, total absolute
US$ mn 2013 revenue 2012 revenue result
Revenues generated in Russia
and the CIS 457.6 68.1% 446.8 70.6% 2.4%
Revenues generated in Europe 109.5 16.3% 99.6 15.7% 9.9%
Revenues generated in North
America 104.9 15.6% 86.8 13.7% 20.8%
* Source: management accounts, customer geography determined based on the
location of clients' key decision maker.
Revenues from Russian operations amounted to US$457.6 mn in the first nine
months of FYE March 31, 2013, an increase of 2.4% y-o-y. During the same
period, revenues generated in Europe amounted to US$109.5 mn, an increase of
9.9% y-o-y, and now account for 16.3% of the Group revenues. Revenues
generated in North America increased to US$104.9 mn, up 20.8% y-o-y and now
account for 15.6% of the Group revenues. The gradual increase of revenues
derived from Europe and US is attributable to the growth in the Software
December December Change September Change
Number of employees 31, 2012 31, 2011 y-o-y 30, 2012 q-o-q
Group headcount 8 473 7 991 6.0% 8 372 1.2%
IT Services segment 2 464 2 466 -0.1% 2 456 0.3%
segment 5 671 5 213 8.8% 5 568 1.8%
Corporate and other 338 312 8.3% 348 -2.9%
* Source: management accounts.
The Group's total headcount amounted to 8,473employees, as we added 482 IT
professionals over the last year. In the Software Development segment, the
number of employees amounted to 5,671, an increase of 458 IT professionals
y-o-y and 103 IT professionals q-o-q, with the majority of employees added in
Ukrainian, Romanian and Polish delivery centres over the last year.
December December Change
US$ mn 31, 2012 31, 2011 y-o-y September 30, 2012 Change q-o-q
Total debt 54.3 55.8 -1.5 67.4 -13.1
Current debt 33.4 33.2 0.2 45.8 -12.4
debt 20.9 22.6 -1.7 21.5 -0.6
Net debt 12.9 16.6 -3.7 53.7 -40.8
* Source: management accounts.
The Group's total debt amounted to US$54.3mn as of December 31, 2012, down
US$1.5 mn y-o-y and US$13.1 mn q-o-q. Net debt position was US$ 12.9 mn, a
decrease of US$3.7 mn y-o-y and US$40.8 mn q-o-q.
Full year revenues outlook
Our full year outlook for the Group's consolidated revenues growth remains
unchanged: in the range of 9-13% in US$ terms.
Anatoly Karachinsky, President of IBS Group commented ,
"We are, for the most part, satisfied with the Group's performance in the
first nine months of the financial year. In the Software Development segment
we are seeing a revival of client demand in the financial vertical, something
we attribute to the end of turbulence in financial markets. Moreover, we are
seeing that high growth rates in this business segment correlate with the
growth of the global offshore programming market. The slowing of the Russian
IT market growth rate to 3.9%* in US$ terms adversely impacted the IT Services
segment, although the segment continued growing faster than the market."
* IDC estimates
About IBS Group Holding Limited
IBS Group is a leading software development and IT services provider in
Central and Eastern Europe. Through its two principal subsidiaries, Luxoft and
IBS IT Services, it offers a wide variety of information technology services,
such as software development and IT services outsourcing, IT infrastructure
and business applications implementation. IBS Group has business operations in
Russia, Ukraine, Romania, Poland, Germany, Switzerland, the UK, the USA,
Vietnam and Singapore. IBS Group employs more than 8,300 people worldwide. In
the year ended March 31, 2012, the Group reported US GAAP consolidated
revenues of US$816.3 million. IBS Group's Global Depositary Receipts are
listed on the Regulated Market (General Standard) at the Frankfurt Stock
Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.F)
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