OREANDA-NEWS. December 03, 2012. IBS Group Holding Limited (IBSG:GR; IBSGq.DE), a leading software development and IT services provider in Central and Eastern Europe, today announced its preliminary unaudited operating results for the second quarter and six months ended September 30, 2012 (2Q and 1H FYE March 31, 2013), reported the press-centre of IBS Group.  

1H FYE March 31, 2013 highlights

Consolidated revenues totaled USD 378.0 mn, a 6.0% increase y-o-y, driven by a pickup in activity in both segments.

Revenues in the IT Services segment increased by 1.8% in USD terms and 12.4% in Russian ruble terms, whereas revenues in the Software Development segment saw a 13.5% increase in USD terms.

Revenues generated in Europe and North America amounted to USD 137.4 mn, and now account for 36.3% of consolidated Group revenues against 34% a year ago.

Total headcount rose to 8,372 employees, an increase of 7.1% y-o-y; mostly due to an increase of IT professionals in the Software Development segment.

Total debt amounted to USD 67.4 mn, a decline of USD 4.3 mn y-o-y; the net debt position didn’t change significantly from the previous year.

Consolidated revenues growth guidance for FYE March 31, 2013 has been updated to be in the range of 9-13%.

Consolidated revenues for the second quarter of FYE March 31, 2013 amounted to USD 212.6 mn, an increase of 18.1% y-o-y driven by solid performance in both segments. Consolidated revenues for the first half of FYE March 31, 2013 came to USD 378 mn, an increase of 6.0% y-o-y.

IT Services segment revenues for the first half of FYE March 31, 2013 amounted to USD 200.8 mn, representing an increase of 1.8% y-o-y. Ruble revenues for the same period totaled RUB 6,376.8 mn, up 12.4% y-o-y. Borlas Group’s revenues, disposed in February 2012, amounted USD 18.9 mn in the first half of FYE March 31, 2012. Adjusted to account for the disposal of Borlas Group, the segment’s revenues in Russian rubles increased by 24.4% y-o-y in the first half of FYE March 31, 2013. The increased number of IT infrastructure projects was the key driver behind revenue growth in the segment during the reported period. \

Software Development segment revenues during the first half of FYE March 31, 2013 rose to USD 145.1 mn, an increase of 13.5% y-o-y. Automotive&transport and financial services verticals showed the fastest growth in the reported period. The segment’s revenues in constant currency* increased by 17.5% and 19.6% y-o-y respectively in the second quarter and first half of FYE March 31, 2013.

* Constant currency revenues are calculated based on a weighted average of actual daily exchange rates for previous periods.

Revenues from Russian operations totaled USD 240.6 mn, representing an increase of 2.3% y-o-y. During the same period, revenues generated in Europe totaled USD 70.1 mn, an increase of 9.4% y-o-y, and now account for 18.5% of the Group's revenues. Revenues in North America rose to USD 67.3 mn, up 17.7% y-o-y and now account for 17.8% of the Group's revenues. The progress in Europe and North America is attributable to business growth in the Software Development segment.

Anatoly Karachinsky, President of IBS Group commented,
"IBS Group has met its targets and performed according to expectations in the preliminary forecasts for the first half of the year. As such, we can view these results as positive. This year has brought robust growth in the IT Services segment. Turnover in rubles for the segment has grown by more than 24% y-o-y, after factoring in the disposal of part of the business last year. The growth in this segment mainly stems from our success in bringing new solutions to the Russian market during implementation of IT infrastructure projects, including cloud technologies and Big Data. The Software Development segment has also grown rapidly owing to our continuing success in financial and automotive verticals. Overall, the outcomes have been affected by the global economic instability, especially fluctuations in the currency markets.  This is reflected in our updated growth forecasts of 9-13% for the Group's turnover in the current financial year."