Revenue of €637 million, up 10.3% driven by organic growth in Technology Management & Financing and external growth in Products & Solutions
The following developments were achieved during the first three months of 2023:
Products & Solutions (P&S) revenue amounted to €312 million, up1 11.1% driven by the acquisitions made over the past 18 months. On an organic basis2, P&S posted a slight increase (up 1.5%) in comparison with Q1 2022, a period of sharp growth.
Technology Management & Financing (TMF) continued to grow with revenue of €197 million, up1 17.6% including 13.6% organic growth2. Performance was boosted by the completion of a number of significant deals during the first quarter, whereas in 2022 they were mostly recognised in the second quarter.
Services revenue (total1 and organic2) slightly decreased by 1.0% to €127 million, mainly due to the postponement of several projects and hiring issues.
Annual targets confirmed
Econocom confirms its annual revenue growth target of 5%, as well as its target of increasing full-year net profit versus the previous year.
However, Econocom expects growth to slow by the end of June 2023, mainly due to seasonal discrepancies between 2022 and 2023 and the various market environments. Likewise, net profit for the first half of 2023 is expected to be down compared to H1 2022.
Disposal of a business line held for sale.
During the first quarter, the Group sold its Products & Solutions business with customer Altice, in France and the USA. This business was classified as a discontinued operation in 2022. This disposal, which has no material impact on the Group's 2023 net profit, has a positive cash impact of around 20 million euros.
Extraordinary Shareholders' Meeting to be convened to cancel treasury shares
At today’s meeting, the Board of Directors decided to convene shortly an Extraordinary Shareholders' Meeting to ask for the vote on the cancellation of the treasury shares held by the Company.
Next publication: H1 2023 results, 25 July 2023 after close of trading.
1. At constant standards
2. At constant standards and scope