Steria's Third Quarter Revenue 2013: €412.3 Million
October 30, 2013 - Paris, France And Noida, Uttar Pradesh, India
(-2.6% like-for-like) in an environment which remained difficult
-- Germany and the Other Europe region were almost stable while the United Kingdom and France declined by a respective 3.9% and 2.8% like for like
-- The book to bill ratio in the cyclical activities stood at 0.97 at September 30, 2013 (0.98 at September 30, 2012)
First nine months 2013 consolidated revenue
First nine months 2013 revenue by geographic region
Activity in the third quarter 2013
Third quarter 2013 revenue by geographic region
In the prevailing difficult demand environment, third quarter 2013 activity remained negative with a 2.6% decline in like-for-like revenue.
The trend slightly improved in the Finance (-6.1% in the third quarter versus -9% over the first six months) and Utilities/Telecommunications/Transport sectors (+5.8% in the third quarter versus -0.1% over the first six months) but deteriorated in the Public Sector (-5% in the third quarter versus -0.6% over the first six months) principally in the United Kingdom and France.
The book to bill ratio in the cyclical activities stood at 0.97 at September 30, 2013 (0.98 at September 30, 2012).
In the United Kingdom, third quarter revenue contracted by 3.9% like for like. As announced early in the year, the implementation of major rationalisation projects in the Public Sector by the British government has opened up some very significant opportunities for the Group whose conclusion could materialise by the end of the year but has led, in anticipation, to a reduction in some existing areas of activity. The Banking sector remained down over the quarter but the Utilities/Transport/Telecommunications sector confirmed its dynamism with strong growth over the quarter. At September 30, 2013, the book to bill ratio in the cyclical activities1 was 0.98 (0.64 at September 30, 2012). The pipeline increased thanks, in particular, to the opportunities in the Public Sector, representing 2.5x projected annual revenue (2.2x at end September 2012).
In France, activity was down by 2.8% against a backdrop still characterised by a marked wait-and-see approach from customers. The pace of the revenue decline slowed in Banking while the Utilities/Telecommunications/Transport sector was stable over the quarter and the trend deteriorated in the Public Sector. At September 30, 2013, the book to bill ratio in the cyclical activities1 was 1.01 (1.23 at September 30, 2012). The pipeline improved to 2.2x projected annual revenue (2.1x at September 30, 2012).
In order to accelerate the implementation of the Group's strategy around the value of its offerings in this region, discussions were initiated with the employee representatives within the framework of a project aimed at improving competitiveness with a goal to increase operating profitability by around €20m by 2015.
In Germany, the third quarter saw a slight decline in activity (-0.5%). The dynamic remained positive in the Public Sector and Banking but contracted in the Utilities/Telecommunications/Transport sector. At September 30, 2013, the book to bill ratio in the cyclical activities1 stood at 0.95 (0.85 at September 30, 2012).
In the Other Europe region, the organic change in revenue was -0.4% marked by a decline in Belgian activity following the end of the integration contract subsequent to the successful deployment of the Schengen Information System II (SIS II). In Scandinavia, organic growth remained strong at +12.4%. At September 30, 2013, the book to bill ratio in the cyclical activites1 stood at 0.93 (0.71 at September 30, 2012).
The Group expects a relatively stable fourth quarter 2013 revenue relative to the fourth quarter of the previous year.
Given the new business currently in the negotiation process, the Group has every confidence in its ability to record strong order intake in the fourth quarter 2013 and therefore to achieve significant organic growth in 2014.
Steria is listed on Euronext Paris, Eurolist (Section B)
ISIN Code: FR0000072910. Bloomberg Code: RIA FP, Reuters Code: TERI.PA
SBF 120 General Index, NEXT 150, CAC MID&SMALL, CAC MID 60, CAC Soft&CS, CAC Technology, Euronext FAS IAS
For further information, see the website: http://www.steria.com
About Steria: www.steria.com
Steria delivers IT enabled business services and is the Trusted Transformation Partner for private and public sector organisations across the globe. By combining in depth understanding of our clients' businesses with expertise in IT and business process outsourcing, we take on our clients' challenges and develop innovative solutions to address them efficiently and profitably. Through our highly collaborative consulting style, we work with our clients to transform their business, enabling them to focus on what they do best. Our 20,000 people, working across 16 countries, support the systems, services and processes that make today's world turn, touching the lives of millions around the globe each day. Founded in 1969, Steria has offices in Europe, India, North Africa and SE Asia and a 2012 revenue of €1.83 billion. Over 20%(*) of Steria's capital is owned by its employees. Headquartered in Paris, Steria is listed on the Euronext Paris market.
(*): including “SET Trust” and “XEBT Trust” (4.15% of capital)
1Consulting, Systems Integration and Testing
Source: Business Wire India