itelligence AG publishes figures for first nine months of 2017
itelligence AG remained on its growth path in the first nine months of the current fiscal year, increasing its revenues by 14.3% from MEUR 553.2 to MEUR 632.2. This growth was attributable to both organic growth (+8.6%) and the companies ITML GmbH and BIT.Group GmbH, which were acquired in the previous year (+5.7%). Orders on hand climbed by 20.9% to MEUR 814.0 as of September 30, 2017 (September 30, 2016: MEUR 673.2).
Norbert Rotter, CEO of itelligence AG, commented: “Our license and servicing business is enjoying above-average growth thanks to substantial investments by our customers in the new SAP S/4HANA technology and expanded SAP cloud solutions. As the global SAP market leader for the traditional and upper midsize segment, we are currently winning a number of challenging international digital transformation projects.”
Consulting revenues rose by 9.6% from MEUR 239.8 to MEUR 262.8. License business enjoyed particularly strong growth of 22.4% in the first nine months, from MEUR 43.8 to MEUR 53.6. Revenues in the Managed Services segment climbed by 16.0% to MEUR 303.4 in the first nine months of the year after MEUR 261.7 in the previous year. The highest increase was again posted by the relatively new Cloud Subscription segment, with growth of 117.8% to MEUR 9.8 after MEUR 4.5 in the same period of the previous year.
In terms of geographical distribution, itelligence generated extremely strong revenue growth of 20.0% in its largest segment of Germany/Austria/Switzerland (DACH), with revenues rising from MEUR 254.9 to MEUR 305.8. Western Europe enjoyed revenue growth of 14.0% in the first nine months, from MEUR 124.1 to MEUR 141.5. itelligence improved its revenues in Eastern Europe by 4.0%, from MEUR 60.3 to MEUR 62.7.
The US segment also reported growth of 5.8%, generating revenues of MEUR 107.4 after MEUR 101.5 in the previous year. The Asia segment recorded revenues of MEUR 10.6 after MEUR 9.2 in the previous year (+15.2%). Finally, revenues in the Other segment increased by 31.3% year-on-year from MEUR 3.2 to MEUR 4.2.
In terms of earnings performance, itelligence AG again achieved the planned improvement in its key figures in the first nine months of 2017. Despite a slightly weaker third quarter, EBIT for the first nine months of the current year increased by 14.9% to MEUR 20.1 after MEUR 17.5 in the previous year. The EBIT margin was unchanged year-on-year at 3.2%. EBITA increased substantially by 22.1%, from MEUR 22.6 in the previous year to MEUR 27.6. This resulted in an EBITA margin of 4.4% after 4.1% in the same period of the previous year.
Dr. Michael Dorin, CFO of itelligence AG, commented: “Our positive earnings performance in the first nine months is reflected in particular in our continued EBITA growth. We are anticipating an extremely good fourth quarter, particularly in terms of earnings, and hence expect to increase our key earnings figures and our margins even further.”
The Management Board is increasing its forecast for fiscal 2017 and is now anticipating revenues of between MEUR 850 and MEUR 860 (previously: MEUR 840-850). itelligence is continuing to target an EBIT margin of around 5%.
itelligence is one of the leading international full-service providers of solutions in support of SAP solutions, employing about 7,000 highly qualified employees in 24 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, SAP-certified provider of hosting services for SAP HANA® Enterprise Cloud 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 2016, itelligence generated total sales of EUR 777.9 million.