OREANDA-NEWS. September 17, 2012. IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software development and IT services provider in Central and Eastern Europe, has announced its preliminary unaudited operating results for the quarter ended June 30, 2012 (1Q FYE March 2013), reported the press-centre of IBS Group.  

Highlights
Consolidated revenues amounted USD 165.4 mn, a decline of 2.5% y-o-y, which was mostly driven by FX volatility across geographies where the Group operates, and deconsolidation of non-core business in the IT Services segment.

International revenues (ex-Russia) amounted to USD 66.9 mn, and now account for 40.5% of consolidated Group revenues against 33.6% a year ago.

Total headcount reached 8,363 employees, an increase of 9.6% y-o-y, which is attributable to Software Development segment expanding delivery centers in Eastern Europe.

Total debt amounted to USD 62.4 mn, a decline of USD 3.1 mn y-o-y, with the net debt position largely unchanged.

Consolidated revenues growth guidance for FYE March 31, 2013 is maintained in the range of 9-15%.

The IT Services segment revenues amounted USD 78.5 mn, a decline of 15.2% y-o-y. In February 2012 the Group finalized transaction which resulted in the increase of interest in IT Services segment by 14.09% to 97.02%, and deconsolidation of OOO Borlas Group which added USD 7mn of segment’s revenue in 1Q FYE March 2012. Adjusted for depreciation of RUB vs. USD in respective periods, segment’s revenues would increase by 0.9%. We reiterate our full year revenues growth guidance for the segment in the range of 6-12%.

The Software Development segment revenues climbed to USD 71.0 mn, an increase of 14.9% y-o-y owing to sustained demand for advanced software engineering services from clients in Western Europe and North America. The growth rates were most aggressive in several key verticals, such as telecom, automotive, and technology, however, were tempered by depreciation of EUR vs. USD in respective quarters. We reiterate our full year revenues growth guidance for the segment in the range of 18-23%.

Comment from President
Anatoly Karachinsky, President of IBS Group said, “The current febrile economic climate affecting the European, US, and as a result Russian markets has given way to weakened growth in the IT-market. However, having taken steps to factor this into our forecast, I am pleased to report that first quarter results sit well within the projected figures. The software development segment is still showing a double-digit growth, and indicative of a wider long-term trend, aimed at offshore model of utilising IT-services. If uncertainty grows, this segment is likely to be further losing momentum, however. While it is indisputable that the performance of the IT-segment has been impacted by the recent volatility of the RUB/USD rate and the deconsolidation of non-core businesses, on a comparable basis, rouble revenues within the segment have remained robust.”