INFOTEL (EPA:INF) - Infotel : Results for the first half of 2017: Growth and profitability.

Transparency directive : regulatory news

20/09/2017 17:40

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

Press release
Bagnolet, September 20, 2017

         Results for the first half of 2017: Growth and profitability

                         - Revenue: EUR103.3m, up 8.3%

                 - Current operating income: EUR11.2m, up 8.6%

                  - Net income, Group share: EUR7.1m, up 6.0%

The Board of Directors, in its meeting of September 20, 2017, approved the
financial statements for the first half of 2017. They were subject to a limited
review by the Statutory Auditors. The first half of 2017 financial report is
available on the Company's website (www.infotel.com).

In EURm, at June 30
(audited accounts)                         H1 2017    H1 2016    Change

Consolidated revenue                         103.3       95.4     +8.3%
Services                                      99.0       91.2     +8.5%
Software                                       4.3        4.2     +4.0%
Payroll expenses                             (48.0)     (44.4)    +8.1%
External expenses                            (40.1)     (37.1)    +8.1%
Depreciation, amortization and provisions     (1.8)      (1.8)      ns
Current operating income                      11.2       10.3     +8.6%
as a % of revenue                             10.8%      10.8%

Operating income                              11.1       10.2     +8.7%
Income tax                                    (4.0)      (3.6)   +10.8%

Net income, Group share                        7.1        6.7     +6.0%
As a % of revenue                              6.9%       7.0%

A satisfactory first half of 2017

For the first half of 2017, Infotel posted revenues of EUR103.3 million, which
represents organic growth of 8.3%, in a global IT services market that grew by
3% (source: Syntec Numérique).

The Services division generated revenues of EUR99.0 million, an increase of
8.5%, thanks in particular to the solid trend in digital transformation
projects across all sectors.

The Software division generated revenues of EUR4.3 million, an increase of 4.0%
for the period, including the IBM royalties in the amount of EUR2.7 million.

Solid increase in interim results

Current operating income came out at EUR11.2 million (+8.6%), for a first-half
2017 current operating margin of 10.8%.

Expenses were handled at 79.6% of revenues (compared with 80.4% in the first
half of 2016), of which 46.5% of payroll expenses. The Group adopted an active
hiring policy in order to attract new talent, with 216 new employees onboarded,
despite an increasingly competitive backdrop.

The inter-contracts rate remained under control at 2.1% for the first half of
the year.

Net income, Group share totalled EUR7.1 million, an increase of 6.0%, for a net
margin of 6.9%.

Financial structure remains solid

Shareholders' equity increased to EUR72.9 million and the Group has no
financial debt. The Group's cash position also improved, to EUR46.7 million vs.
EUR42.8 million in the first half of 2016.

Confidence for 2017

The Group confirms growth of the same order as in the first half of the year,
with a relative uncertainty on the ease of recruitment.

In the longer term, Infotel aims to double in size in the next five years with
the help of acquisitions.

Upcoming events:
Publication of Q3 2017 revenue: October 25, 2017 after market close.

About Infotel

Listed on Compartment B of Euronext Paris since January 1999 (ISIN code
FR0000071797), Infotel specialises in large-account information management
systems, from mobile to very large volume databases (Big Data). Operating at
the forefront of technological innovation, Infotel develops its expertise
across two complementary divisions: IT services and software publishing. With
EUR190.6 million in turnover in 2016, Infotel has a staff of over 2,000.

Contacts

Infotel                                                                Actifin
Michel Koutchouk                                       Financial Communication
Vice President                                            Ghislaine Gasparetto
Tel.: +33 (0)1 48 97 38 38                          Tel.: +33 (0)1 56 88 11 11
michel.koutchouk@infotel.com                            ggasparetto@actifin.fr

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