Indra boosts net profit by 34%
Revenues increased by 11% and order intake by 13%
The international market is leading the company?s growth, with a revenue increase of 16%
The EBIT margin rose to 11.4%, vs. 9.9% registered in the same period a year earlier
Indra ended 1H08 with net profit of euros 100.4m, an increase of 34% yoy. Revenues increased 11% to euros 1,247m, while EBIT was up 28% to euros 141.8m. Order intake, which was 19% higher than revenues, grew by 13% to euros 1,482m.
The EBIT margin rose to 11.4%, well above the level recorded in 1H07 (9.9%) due to the integration costs incurred last year in connection with the Azertia and Soluziona acquisitions.
Operating cash flow had a favourable showing, advancing 33%.
Some 74% of revenue came from the solutions business, while 26% came from services; both divisions posted double-digit growth: 10% in solutions and 14% in services.
International market leads the pace of revenue growth
Revenues from the international market climbed 16%, while revenues in Spain grew 9%. This performance is evidence of the growing weight of the international business, in accordance with company plans. In Europe revenues increased by 10%, in Latin America by 21%, and in regions such as Asia-Pacific, the Middle East and Africa, by 44%.
Regarding vertical markets, and even though all the company’s markets performed well, highlights were the Telecom and Media division, where revenues rose 18%, and the Public Administration and Healthcare business 14%, with excellent performance in Latin America. The Financial Services business boosted its revenues by 16%, a result of the sizable investments being made by large Spanish financial institutions in both the Spanish and international markets; institutions in which Indra is gaining market share.
2008 targets
This upbeat outlook, underpinned by both strength in the order backlog and expectations regarding bids that have already been submitted, gives us confidence that the company's key indicators will round out 2008 as follows:
- Revenue growth of between 9% and 10%, vs. the 8%-10% target announced at the beginning of the year. In light of 1H08 revenues and the amount of the order book executable in the second half, coverage relative to 2008 guidance stands at over 92%.
- Order intake growth will advance in a similar range, 9%-10% outpacing top-line growth once again this year, further bolstering the backlog.
- Enhanced operating profitability, with an EBIT margin of 11.3-11.5%.
- Net profit growth of 22%, an improvement on the initial target for a range of between 18% and 22%.