3rd Quarter Revenue 2012

9 month and 3rd quarter performance

both in line with targets

 

  • Total growth of 14.3% and organic growth of 1.0% for the 9 month period
  • Total growth of 20.9% and organic growth of 1.1% in the 3rd quarter
  • Full-year revenue growth and margin targets confirmed

 

     

    Paris, 6 November 2012 – In the first nine months of 2012, Sopra Group’s revenue was €879.8 million, representing total growth of 14.3% and organic growth of 1.0%. This performance is in line with the full-year targets previously announced by the Group and reflects both the solidity of Sopra Group’s positions in France and improvements in its positions in other European countries despite a gloomy macroeconomic environment.

    Business review for the 3rd quarter

    Given the current economic climate, clients are proceeding more cautiously with investments, although they are not shying away from projects essential to further development of their business:

     
    • in sectors such as telecoms, utilities, transport, services, manufacturing, and to a lesser extent the public sector, recent contract wins and competitive tenders in progress indicate a focus on development and an interest in preparing the future;
    • in the financial services industry, decision-making cycles are still very long for contracts combining software packages and related services.

    The value-added offerings developed by Sopra Group in the areas of consulting and systems and solutions integration meet the requirements of this situation and are helping the Group conquer market share, especially in France.

    In France, third-quarter revenue thus came to €230.8 million, representing total growth of 17.3% and organic growth of 1.0%. This performance reflects operating circumstances shaped by contrasting trends:

    • the consulting and IT services business saw solid growth of 4% in the third quarter and 3% in the first nine months of the year;
    • revenue generated by Sopra Banking Software was down 12% in the third quarter and declined 8% in the first nine months of the year. Details concerning the performance of this new subsidiary will be included in the Group’s announcement of its annual results.

    In Europe, third-quarter revenue was €59.4 million, representing total growth of 37.5% and organic growth of 1.7%:

    • the United Kingdom saw total growth of 100%. The Group carried out two acquisitions during the first half intended to strengthen its positions in this market. Organic revenue growth in the UK was down 3.7% in the third quarter;
    • Spain’s organic growth of 5.8% was driven by the current reorganisation plans of Spanish banks;
    • Italy posted organic growth of 5.9%, also fuelled by the banking sector;
    • operating circumstances in Belgium improved in the period, with strong organic growth of 44.4%;
    • organic growth in Switzerland was down 3.6%.

    Financial position

    At 30 September 2012, the Group’s financial position remained sound, in regard to both debt maturity and compliance with banking covenants.

    Outlook

    Sopra Group reaffirms its target for a slight improvement in revenue, despite a difficult economic environment and a high basis of comparison.

    The Group also confirms its forecast for very slight margin improvement, however, the usual uncertainty remains as to the volume of licence sales agreements to be signed by the end of the year.

    Financial calendar

    Tuesday, 19 February 2013, after the stock market close: announcement of annual results.

    Wednesday, 20 February 2013 at 3.30pm: analysts’ meeting at Pavillon Kléber, Paris.

    Appendices