itelligence AG has begun the new fiscal year with revenue growth of 10.8%. Revenues for the first quarter increased from MEUR 160.4 in the previous year to MEUR 177.8. This rise was due to both organic growth (8.0%) and the companies acquired last year (2.8%). Orders on hand climbed by 8.2% to MEUR 696.2 as of March 31, 2016 (March 31, 2015: MEUR 643.2).
Herbert Vogel, CEO of itelligence AG, commented: “Following a very good close to the previous year, we have now made a satisfactory start to 2016. High customer demand and extremely good application management business contributed to our revenue performance in the first quarter, as did our good international business, particularly in Western and Eastern Europe.”
In the revenue segments, Consulting revenues increased by 10.7%, from MEUR 70.9 to MEUR 78.5. License revenues improved by 9.8%, from MEUR 12.3 to MEUR 13.5. At MEUR 58.3, revenues in the Outsourcing & Services segment were essentially unchanged compared with the excellent prior-year figure of MEUR 58.9. Finally, Application Management revenues increased by a substantial 48.0%, from MEUR 17.9 to MEUR 26.5 in the first quarter of 2016.
In terms of geographical distribution, itelligence recorded growth across all segments. The largest segment, DACH (Germany/Austria/Switzerland), increased its revenues by 4.2% to MEUR 78.6 compared with MEUR 75.4 in the previous year. Western Europe generated substantial revenue growth of 23.8% in the first quarter, from MEUR 34.0 to MEUR 42.1. itelligence increased its revenues in Eastern Europe by 34.0%, from MEUR 15.3 to MEUR 20.5.
Revenues in the USA also increased from MEUR 32.3 in the previous year to MEUR 32.9. The Asia segment reported revenues of MEUR 2.9 in the first quarter of 2016 after MEUR 2.3 in the same period of the previous year (+26.1%). Revenues in the Other segment effectively matched the previous year’s level at MEUR 0.8 (previous year: MEUR 1.1).
itelligence AG’s earnings performance was down on the previous year. EBIT amounted to MEUR 3.9 for the first three months of the current year after MEUR 4.9 in the previous year, resulting in an EBIT margin of 2.2% compared with 3.1% in the same period of the previous year. EBITA after the first three months amounted to MEUR 5.6 after MEUR 6.5 in the previous year. This meant that the EBITA margin was 3.1% compared with 4.1% in the same quarter of the previous year.
Norbert Rotter, CFO of itelligence AG, said: “Our earnings performance in the first quarter fell below our expectations due to higher start-up costs for major new projects, among other things. In light of our healthy order situation, we are reiterating our revenue and earnings forecasts for the year as a whole.”
For 2016 as a whole, the Management Board is forecasting revenue growth to MEUR 720 and an EBIT margin of around 5.5%.