- As forecast, revenues increase by 6.2% to MEUR 926.6 in 2018 (after adjustment for currency translation effects: 8.8%)
- Growth rate of 39.7% in the Cloud Subscription segment
- EBITA of MEUR 31.0 after MEUR 44.1 in 2017
- Forecast for 2019: BEUR 1 mark in sight – revenue growth to between BEUR 1,000 and BEUR 1,010 with EBITA margin of around 5%
itelligence AG remained on course for growth in 2018 as a whole. itelligence generated revenue growth of 6.2% (after adjustment for currency translation effects: +8.8%) to MEUR 926.6 compared with MEUR 872.2 in the previous year, and was within the forecast revenue corridor of MEUR 920 to MEUR 930. This revenue performance was attributable to both organic growth (+2.4%, after adjustment for currency translation effects: +4.9%) and newly acquired companies (+3.8%, after adjustment for currency translation effects: +3.9%). Earnings before interest, taxes and amortization (EBITA) for the year as a whole amounted to MEUR 31.0 after MEUR 44.1 in the previous year. Orders on hand at itelligence AG totaled MEUR 982.1 as of December 31, 2018, up 5.9% on the previous year’s figure of MEUR 927.8 as of December 31, 2017.
Norbert Rotter, CEO of itelligence AG: “We remained on course for growth in the past fiscal year, even though organic growth fell short of expectations. In the fourth quarter, organic growth in revenues again came to around 10%. Cloud revenues continue to perform particularly well.”
In the individual revenue segments, consulting business reported growth of 8.6%, from MEUR 358.2 to MEUR 389.1. The biggest percentage increase in revenues was achieved by the Cloud Subscription segment, with growth of 39.7% from MEUR 14.1 to MEUR 19.7. The largest segment, Managed Services, also reported revenue growth of 5.7% from MEUR 408.5 to MEUR 431.6. License revenues amounted to MEUR 81.6 in fiscal 2018 after MEUR 87.9 in the previous year (-7.2%). In the fourth quarter of 2018, license revenues totaled MEUR 35.7, up 4.1% on the previous year’s figure of MEUR 34.3.
In terms of geographical distribution, the largest segment, DACH, reported revenue growth of 6.3%, from MEUR 417.9 to MEUR 444.1. The Western Europe segment again enjoyed particularly strong growth of 13.9% to MEUR 131.7 after MEUR 115.6 in the previous year. Revenues in the Northern and Eastern Europe (NEE) segment increased by 7.1%, from MEUR 172.3 to MEUR 184.6. Revenues in the America segment declined slightly by 2.3% to MEUR 141.9 after MEUR 145.2 in the previous year. This segment also shows a clear upward trend, with revenue growth of 6.6% to MEUR 40.3 reported in the fourth quarter of 2018. Revenues in the Asia segment rose significantly by 21.7% during the fiscal year, from MEUR 14.3 to MEUR 17.4. The Other segment remained on par with the previous year at MEUR 6.9.
itelligence AG’s key earnings figures did not perform as expected, with earnings before interest, taxes and amortization (EBITA) falling by 29.7% to MEUR 31.0 after MEUR 44.1 in the previous year. This brought the EBITA margin to 3.3% in the past fiscal year compared with 5.1% in the same period of the previous year.
The Management Board is forecasting further growth in revenues above the BEUR 1 mark for fiscal 2019. Revenues are set to increase to between BEUR 1,000 and BEUR 1,010 in the current year. An EBITA margin of around 5% is projected with further growth in earnings.
itelligence is one of the leading international full-service providers of solutions in support of SAP solutions, employing about 8,000 highly qualified employees in 25 countries. As a frequently awarded SAP partner, itelligence is an SAP Hybris Gold partner and global value-added reseller. itelligence is an SAP-certified provider of cloud services and an SAP platinum partner. itelligence realizes complex projects in the SAP solution-based environment worldwide. The company’s services in support of SAP solutions range from consulting and licensing to application management services and hosting services to proprietary industry-specific solutions. In 2018, itelligence generated total sales of EUR 926.6 million