Indra's net profit rose 30% in 2007
Revenues climbed 54% to euros 2,167.6 million.
For 2008, the company forecasts significant growth and an improvement in EBIT, and expects net profit to rise by between 18% and 22
Indra, Spain's leading IT company and one of the main players in Europe, ended 2007 with net profit of euros 147.8 million, an increase of 30% from a year earlier. Revenues grew 54% to euros 2,167.6 million, while order intake, which again surpassed revenues, rose 51% to euros 2,334.2 million. The backlog climbed 19% to euros 2,241.8 million.
EBIT was €23.5 million, leaving an EBIT margin of 10.3%. This includes €16.5 million in one-off expenses related to the integration of Azertia and Soluziona. Stripping out these expenses, the EBIT margin would have been 11.1%.
Comparison with pro-forma 2006 figures
For more meaningful comparisons, the company has prepared pro-forma consolidated data for 2006, consolidating Azertia and Soluziona. On a like-for-like basis, revenues rose by 11%, while the international market performed even better, up 16%. With these earnings, Indra exceeded all of the targets set out for the year, targets which were especially rigorous in a year in which the company integrated Azertia and Soluziona, a process which it successfully completed in the shortest possible time.
Strength in technology and international expansion
The company’s range of advanced technology solutions accounted for 74% of revenues in 2007, while services accounted for 26%. Indra gained a foothold in 10 new countries in 2007, bringing its international presence to 82 countries.
The Transport and Traffic and Defence and Security markets continued to reflect the strength of their range of services in international markets. Highlights include contracts won in air traffic control systems in Eastern Europe, Asia and Latin America, all of them markets with high growth potential. Also worth noting are the contracts Indra was awarded for coastal border surveillance systems, particularly in Asia and Eastern Europe.
The Financial and Insurance business was one of the strongest performers, thanks mainly to a sound showing in the Spanish financial market and a more extensive range of services at the process outsourcing business as a result of the integration of Azertia and Soluziona.
The Telecom and Media business grew faster, especially late in the year, primarily because of the oustanding performance in the Latin American market.
Finally, growth at the Public Administration and Healthcare division was driven by good performance in the healthcare industry in Spain.
2008 targets
Indra’s outlook for 2008 is upbeat, and the company anticipates that demand for IT services will be strong, with growth rates similar to those registered in 2007.
Targets for growth and profitability in 2008 are as follows:
- A revenue increase of between 8% and 10%, with growth in international markets outpacing that of the Spanish market.
- Growth in order intake of between 9% and 10%. We expect growth in the order intake to outpace revenue growth once again this year, further boosting the backlog
- Growth in operating profit. Our EBIT margin guidance is for between 11.3% and 11.5%, implying margin expansion of at least 1.3 percentage points since the integration of Azertia and Soluziona (the pro-forma EBIT margin for 2006 was 10%).
- Net profit set to grow between 18% and 22% in 2008
These targets assume that in 2008 Indra will continue to post growth rates which outpace both those of the markets in which it operates and those of the industry’s leading players.