INFOTEL (EPA:INF) - INFOTEL : Sharp improvement in 2021 half-year results.

Transparency directive : regulatory news

22/09/2021 17:45

Euronext B - ISIN: FR0000071797
Reuters: ETOF.PA - Bloomberg: INF FP

Press release
Paris, September 22, 2021

                  Sharp improvement in 2021 half-year results
                Revenue: EUR129.1m, +9%, above the targets set
   Current operating margin (excluding allocation of free shares) at 9.2% of
                                    revenue
                  Net income Group share: EUR6.3m (up 32.8%)

Infotel, (ISIN code: FR0000071797 - memo: INF), a leading partner in the
digital transformation of major accounts in Europe, today announced the
publication of its financial statements for H1 2021, approved at a Board of
Directors' meeting held on September 22, 2021, which was subject to a limited
review by the Statutory Auditors.

In EURm, as of June 30th                                             % Chg.
(Limited review)                      H1 2021   H1 2020   H1 2019  2021 / 2020
Consolidated revenue                   129.1     118.4     122.3      9.0%
o/w revenue from Services              125.3     114.2     118.2      9.7%
o/w revenue from Software                3.8       4.2       4.1     -9.5%
Staff costs                            (55.5)    (51.5)    (54.0)     7.7%
External costs                         (56.9)    (53.0)    (53.7)     7.4%
EBITDA(1)                               14.0      11.9      12.3     17.3%
% of revenue                            10.9%     10.1%     10.1%
Depreciation, amortization,
and provisions                          (4.1)     (3.9)     (2.9)     5.2%
Recurring operating income
excluding free shares (2)               11.9       9.9      11.1     20.5%
% of revenue                             9.2%      8.4%      9.1%
Recurring operating income              10.2       8.0       9.5     28.3%
% of revenue                             7.9%      6.7%      7.8%
Operating profit                        10.2       9.0       9.5     13.4%
Net financial expense                   (0.1)     (0.2)     (0.1)       na
Taxes                                   (3.4)     (3.9)     (4.3)   -12.3%
Net income Group share                   6.3       4.8       4.9     32.8%
% of revenue                             4.9%      4.1%      4.0%

(1) EBITDA is calculated as follows: Current operating income + depreciation,
amortization and provisions - provisions on current assets + provisions for
litigation + amortization of CIR + provisions for retirement benefits.
(2) Free shares: Free shares for 7 people in management (233,603 new shares
created).

Activity that exceeds targets set

Against a backdrop of solid business recovery, Infotel posted revenue of
EUR129.1m for the first half of 2021, up 9.0%. This performance represents
growth of 5.5% compared to 2019, above the target of reporting business
comparable to that of 2019.

The Services business generated revenue of EUR125.3m, up 9.7% compared to H1
2020, and posted very strong sales dynamics.

In particular, the Banking/Finance sector reported new contracts and accounted
for a 40.8% contribution to Services revenue at the end of June 2021. Industry
accounts for 22.7% of the Services business, with stable activity at Airbus.

With a slightly higher contribution this year, at 19.2%, Services/Transport
also reflected the strong recovery of Air France over the period.
Insurance/Retirement increased to 14.1%, compared to 13.6% in 2020. The
Administration sector stabilized at 3.1%.

With 202 gross new hires over the period (vs. 143 last year), the total
headcount was 2,669 at the end of June 2021. The still low inter-contract rate
was 2.5% on average over the half-year.

Revenue from the Software business amounted to EUR3.8m, including EUR1.9m in
IBM royalties.

As the airline sector began to recover, the Orlando software suite for aircraft
technical documentation won new signatures with Republic Airways, Air France,
FlyaDeal, Emerald, Fiji Airways and Binter. It has excellent potential for
growth in the future.

Strong improvement in profitability

This solid business recovery is directly reflected in the results, which are
showing strong improvement. Thus, recurring operating income, excluding the
allocation of free shares, stood at EUR11.9 million in H1 2021, up 20.5%,
benefiting from cost control measures, notably related to the decrease in
travel and travel expenses. The current operating margin was 9.2% of revenue.

After taking into account the allocation of free shares, whose cost, at
EUR1.7m, is lower than last year (EUR2.0m in H1 2020), operating income was
EUR10.2m in H1 2021, up 13.4%.

After accounting for tax expenses, net income came to EUR6.3 million, up 32.8%,
representing a net margin rate over the period of 4.9%.

Robust financial structure

The balance sheet totaled EUR227.2m at June 30, 2021, versus EUR205.0m at June
30, 2020, and equity was up at EUR96.1m versus EUR92.2m one year ago.

Customer receivables increased to EUR72.1m vs. EUR59.3m, reflecting the
increase in business volume recorded over the first half of the year.

As of June 30, 2021, the Group did not have any financial debt. Cash at the end
of H1 2021 stood at EUR86.6m.

Favorable outlook for the end of the fiscal year

Infotel expects continued growth at the end of the year. 2021 business is
expected to increase compared to 2019, and current operating profitability
should be at least equal to that of 2019.

                             Upcoming events:
   Publication of Q3 2021 revenue: October 27, 2021, after market close

About Infotel

Listed on compartment B of Euronext Paris since January 1999 (Isin code
FR0000071797), Infotel is a specialist in large account management systems,
from mobile to very large databases (Big Data). At the cutting edge of
technological innovations, Infotel is developing its expertise around two
complementary areas of activity: IT services and software publishing. With
EUR235.2m in revenue in 2020, Infotel employs more than 2,600 people.

Your contacts

Infotel                        Actifin
Michel KOUTCHOUK               Financial Communication
Chief Executive Officer        Ghislaine GASPARETTO
Tel.: 01 48 97 38 38           Tel.: 01 56 88 11 11
michel.koutchouk@infotel.com   ggasparetto@actifin.fr

www.infotel.com

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