INFOTEL (EPA:INF) - INFOTEL : Solid 2020 FY earnings in an unprecedented context. Outlook for 2021: heading for a new phase of growth.

Transparency directive : regulatory news

10/03/2021 17:40

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

Press Release
Paris, 10 March 2021

             Solid 2020 FY earnings in an unprecedented context
              Revenue exceeds expectations, at EUR235.2 million
   Current operating margin (excluding free shares granted) of 9% of sales
Exceptional dividend to be proposed at the General Meeting: EUR1.60 per share
            Outlook for 2021: heading for a new phase of growth

Infotel, (ISIN Code: FR0000071797 - Ticker: INF), the leading partner in
digital transformation for key accounts in Europe, today announced the
publication of its 2020 financial statements, as approved by the Board of
Directors at its meeting of 10 March 2021 and audited by the Company's
statutory auditors.

In EUR million at 31 December
(audited accounts - IFRS)                 2020      2019    Change

Consolidated revenue                     235.2     248.4     -5.3%
o/w Services                             226.9     239.9     -5.4%
o/w Software                               8.4       8.5     -1.4%
Personnel expenses                      (104.4)   (105.3)    -0.9%
External expenses                       (102.4)   (110.3)    -7.1%
EBITDA(1)                                 24.8      28.6    -13.3%
Depreciation, amortization,
and provisions                            (7.8)     (6.3)   +23.9%
Current operating income (expense)
excl. free shares granted                 21.3      25.9    -18.1%
as a % of revenue                          9.0%     10.4%     NA
Current operating income                  16.8      22.4    -25.3%
as a % of revenue                          7.1%      9.0%     NA
Operating income (expense)                17.8      22.4    -20.5%
Financial income (expense)                (0.5)     (0.2)     NA
Income tax                                (7.7)     (9.0)   -14.9%
Group share of net income                  9.4      12.9    -27.2%
as a % of revenue                          4.0%      5.5%     NA

These financial statements were audited and the associated certification
reports are currently being prepared.

(1) EBITDA is calculated as follows: Current operating income + depreciation,
amortisation and provisions - provisions for current assets + provisions for
disputes + amortisation of research tax credit + retirement provisions.

www.infotel.com

Revenue exceeds expectations in 2020

Full-year revenue for 2020 declined 5.3% to EUR235.2 million, which was better
than the target set in October (expected decline of 7-8%(2).

The gradual recovery recorded in the fourth quarter testifies to the resilience
of Infotel's business model in the face of a major public health crisis.

For the Services division, several sectors made larger contributions to revenue
compared with 2019: Banking (41.0%, vs. 36.1% in 2019), Insurance/Pensions
(14.2% vs. 12.5%), and Administrations (3.1% vs. 2.0%). Meanwhile, other
sectors contributed lower amounts: Industry (24.5% vs. 28.2%) and Services
(17.1% vs. 21.2%).

The second half of the year saw a rally in business activity at Air France and
Stellantis, while the situation at Airbus stabilised. In the banking sector,
repeat business is still going strong.

Overall, the Group's extensive use of teleworking ensured business activity was
able to continue in good conditions.

The freeze on recruitment, due to the lack of visibility and the use of
subsidised leave, resulted in a stable headcount of 2,371 employees at the end
of December. At that date, there were only about 10 employees still on
subsidised leaves. The inter-contract rate remained very low at 3.2% for the
year.

For the Software business, revenue was stable at EUR8.4 million in 2020, of
which EUR4.5 million in IBM royalties for the full year.

Despite the sharp slowdown in the airline sector, the Group notched up several
contracts for Orlando, the software solution developed to assist with technical
documentation and aircraft maintenance. Infotel signed agreements with industry
leaders, such as American Airlines, Flyadeal (subsidiary of Saudia), and Spirit
Airlines, a US airline company, as well as Emerald Airlines at the start of the
year.

Current operating margin of 9% of sales, excluding free shares granted

Current operating income came to EUR21.3 million in 2020 (excluding the free
shares granted to the Group's key managers, in the amount of EUR4.5 million)
implying a current operating margin of 9%.

Factoring in the free shares granted, current operating income works out to
EUR16.8 million, which was achieved despite the contraction in activity caused
by the public health crisis.

After accounting for income tax expense, Group net income came to EUR9.4
million, implying a net margin of 4.0% of total revenue for the full year.

Strengthened financial position

The balance sheet shows a total of EUR227.6 million at 31 December 2020,
compared with EUR205.5 million at 31 December 2019.

Shareholders' equity increased to EUR98.7 million from EUR92.7 million a year
earlier.

As a result of the application of IFRS 16, the Group recorded an increase in
non-current assets including rights of use in a net amount of EUR31.2 million.
The Group did not have any financial liabilities at 31 December 2020. At the
end of the financial year, Infotel had EUR99.1 million in disposable cash, up
from EUR74.6 million at 31 December 2019.

(2) Press release of 21 October 2020

Exceptional dividend of EUR1.60 per share proposed for 2020

At the General Meeting on 19 May 2021, Infotel's Board of Directors will
propose the payment of an exceptional dividend of EUR1.60 per share in respect
of 2020, to compensate for the free shares granted to certain company managers.
Management's decision to pay a high dividend testifies to its confidence that
the rally in growth will become a firm trend in 2021.

Outlook for 2021: heading towards a new phase of growth

Despite the lack of visibility due to the ongoing public health crisis, the
Group expects to get back on the growth path in 2021, starting at a moderate
pace in the first half then picking up speed in H2 2021. Short of a worsening
in the public health situation, Infotel is aiming to restore revenue and
operating profitability to levels on a par with 2019 in the 2021 financial
year.

                               Upcoming events
                  General Meeting: 19 May 2021- 2.30 p.m.
                Publication of Q1 2021 revenue: 19 May 2021

About Infotel

Listed on Compartment B of Euronext Paris since January 1999 (ISIN code:
FR0000071797), Infotel specialises in information management systems for key
accounts, from mobile to very high-volume databases (Big Data). Operating at
the forefront of technological innovation, Infotel develops its expertise
across two complementary divisions: IT services and software publishing.
Infotel posted revenue of EUR235.2 million in 2020 and employs over 2,370
people.

Contacts

Infotel                             Actifin
Michel Koutchouk                    Financial Communication
Chief Executive Officer             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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INFOTEL (EPA:INF) - INFOTEL : Solid 2020 FY earnings in an unprecedented context. Outlook for 2021: heading for a new phase of growth.

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