IBS Group Announces its Audited US GAAP Financial Results for Financial Year 2010By Ibs Group Holding Limited, PRNE
Thursday, July 28, 2011
MOSCOW, July 29, 2011 -
Please refer to important legal information at the end of the document
IBS Group Holding Limited (IBSG.DE, IBSG.F) announces today its audited consolidated financial results for the year ended 31 March 2011 (FY’2010).
Change, US$ million FY'2010 FY'2009 % Consolidated revenues 656.0 505.1 +30% EBITDA 47.5 34.6 +37% EBITDA margin 7.2% 6.9% Net income 25.8 13.9 +86% Net income margin 3.9% 2.7%
1) Revenues by segments from external customers.
2) The Group’s EBITDA is equal to net income/(loss) from continuing operations plus/(minus) net interest expense (income), income tax expense (benefit), impairment loss, depreciation and amortisation.
3) Net Income attributable to the Group.
The 2010 financial year was an important year for IBS Group, solidifying our position as a leader in Eastern European offshore software development and a forerunner in IT services sector in Russia. 2010 was marked by a healthy recovery of the Group’s revenues to US$656.0 million. Notably, IBS Group was able to achieve significant improvements in profitability with net income soaring 86% YoY and EBITDA margin increasing to 7.2%.
US$ million Revenues by segments FY'2010 FY'2009 Change, % IT Services 388.2 309.2 +26% Software Development 205.3 147.9 +39% Online Software Delivery 61.2 46.3 +32% Corporate and other 1.3 1.7 Consolidated revenues 656.0 505.1 +30%
Software Development segment, represented by Luxoft, has become the key business for the Group. In FY’2010, Luxoft continued to position itself as the provider of choice in the complex international software outsourcing market thanks to its ability to combine unparalleled expertise in delivering high quality services with strict cost control discipline. Luxoft’s growth was propelled by the major secular trends of (1) continued shift into cloud computing; (2) decline of dominant incumbents in operating systems and spread of new OSs; (3) growth in internet-enabled merchandise. Luxoft’s differentiating competence of geographic diversity was reinforced in 2010 through the opening of new development centres in Poland, Singapore, and the United Kingdom.
In the Russian IT Services segment, represented by IBS IT Services, the Group’s management successfully capitalised on major 2010 trends: (1) the Russian IT services market recovery; (2) rapid restoration of demand from numerous Russian customers; (3) improved visibility going forward. These trends have further fuelled an investment case for the Russian IT services sector as a growth and a value story, in which IBS Group’s IT services segment is strongly positioned to capture the benefits. In 2010, IBS IT Services premier position in the Russian market was yet again acknowledged by the industry experts through several awards, including “the largest consulting company in Russia” (Expert RA) and “the largest IT services company in Russia” (IDC).
In November 2010 IBS Group successfully completed an upgrade of its GDR listing designation and became the first Russian company whose GDRs are listed on the Regulated Market of the Frankfurt Stock Exchange. Furthermore, in August 2010 the Group obtained a US$20 million convertible loan from the European Bank for Reconstruction and Development as part of its efforts to diversify instruments and sources of financing and reduce borrowing costs. Both of these developments signify ongoing steps in management’s efforts to increase transparency and underline importance of corporate governance within the Group.
Sustainable profitable growth of IBS Group in the financial year 2010 was underpinned by four main pillars in services delivery: continued enhancement of value for our customers, ongoing quality management, geographic expansion, and leverage of our sales and distribution network world-wide. Diligence, ingenuity, and extraordinary commitment of our employees provided a foundation for the Group’s business success.
Our solid revenue generation pipeline for this year allows IBS Group to look into the 2011 with confidence and enthusiasm.
To view full audited financial statements and management report please visit: www.ibsgr.com/investor-relations/financial-reports/fy2010.aspx
IBS Group is a leading software development and IT services provider in Eastern Europe. Through its two principal subsidiaries, Luxoft and IBS IT Services, it offers a wide variety of information technology services, such as software development, IT outsourcing, business and IT consulting, business applications implementation. IBS Group is headquartered in Russia and has business operations in Russia, Canada, Germany, Romania, Poland, Switzerland, the UK, Ukraine, the USA, Vietnam and Singapore. IBS Group employs more than 7,355 people worldwide.
IBS Group’s Global Depositary Receipts are listed on the Regulated Market (General Standard) at the Frankfurt Stock Exchange (Bloomberg: IBSG:GR; Reuters: IBSGq.DE). IBS Group is majority-owned by management with portfolio investors holding 35% of the Group’s share capital. For more information on IBS Group, please visit www.ibsgr.com .
For more information about IBS Group please visit www.ibsgr.com or contact Investor Relations:
Investor Relations Director
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