itelligence AG enjoyed very strong growth in fiscal year 2016 and has reported revenues of MEUR 777.9, a surge of 11.7% compared with the previous year’s figure of MEUR 696.2. Revenues of up to MEUR 750 were forecast for fiscal year 2016. The earnings situation is also satisfactory thanks to a very strong fourth quarter. EBIT for the year as a whole is virtually on par with the previous year’s level. The good overall results were attributable to organic growth of MEUR 40.4 (up 5.8%) and the increased revenues resulting from newly acquired companies of MEUR 41.3 (up 5.9%). Orders on hand at itelligence AG rose by 17.0% from MEUR 659.5 as of the end of 2015 to MEUR 771.7 as of December 31, 2016.
Norbert Rotter, CEO of itelligence AG, said: “In the fourth quarter of 2016, we managed to generate significant new business. In particular, license business and cloud revenues rose to new record levels. itelligence is thereby fortifying its global position. In addition to Germany, itelligence saw significant double-digit growth in the UK, Scandinavia, Poland and Turkey. Despite the many challenges – such as those stemming from exchange rates and project business – we are satisfied with our overall result. To safeguard our growth strategy, itelligence is investing in SAP-based product solutions to greatly benefit our customers in the digitization of their business models.”
In the individual revenue segments, consulting business improved with an increase in revenues of 6.9% from MEUR 310.1 to MEUR 331.4. License and cloud subscription business improved its revenues by 18.6% to a record level of MEUR 85.5 (previous year: MEUR 72.1). Revenues in managed services business was up by 16.0% in total at MEUR 360.2 (previous year: MEUR 310.6). Managed services business now accounts for 46.3% of total revenues (previous year: 44.6%).
In terms of geographical breakdown, revenues in the largest segment, DACH, increased by 13.5% from MEUR 321.2 to MEUR 364.6. The Western Europe segment also posted growth of 14.7% to MEUR 177.6 after MEUR 154.8 in the previous year. In Eastern Europe, revenues climbed by 11.7% from MEUR 74.6 to MEUR 83.3. The US segment improved with growth of 3.7% from MEUR 130.8 to MEUR 135.7. Revenues in the Asia segment rose by 16.8% from MEUR 10.7 to MEUR 12.5 in fiscal year 2016. In the Other segment, revenues amounted to MEUR 4.2 after MEUR 4.1 in the previous year.
In terms of earnings (EBIT), itelligence AG did not quite rise to the level of the previous year (5.2%) owing to project start-up costs for IT solutions, acquisition costs and exchange rate losses, ultimately generating an EBIT margin of 4.5%. In absolute figures, EBIT for 2016 was virtually on par with the previous year at MEUR 34.9 (MEUR 36.0). In particular, a strong fourth quarter with EBIT growth of 13.0% to MEUR 17.4 (previous year: MEUR 15.4) and an EBIT margin of 7.7% (previous year: 7.7%) indicated a strong upturn in performance.
The Management Board is forecasting further growth in revenues and increased earnings for fiscal year 2017. Thus, revenues are set to rise to between MEUR 820 and MEUR 830 in the current year. An EBIT margin of around 5.0% is projected with further growth in earnings.
Further figures and details can be found in the 2016 Annual Report, which will be published on March 31, 2017.
About itelligence
itelligence is one of the leading international full-service providers of solutions in support of SAP solutions, employing more than 5,600 highly qualified employees in 25 countries. As a frequently awarded SAP partner, among others global value-added reseller, SAP Certified in Cloud Services, SAP-Certified Provider of Hosting Services for SAP HANA® Enterprise Cloud and 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 SAP. In 2016, itelligence generated total sales of EUR 777.9 million.