Robust half-year 2021 performance
• Recurring Operating Profit (ROP)1 increasing2 to €62.3 million (up 40%) and operating profitability reaching 5.0% (up 140 bp)
• Net Profit from continued operations at €31.3 million versus €5.8 million in first half of 2020
• A 1.7%2 increase in revenue driven by the good growth dynamics of the Digital Services and Solutions segment (up 7.7%2), accounting for two-thirds of the half-year revenue.
Overall improvement of operating profitability across all Econocom Group business segments
The Econocom group’s board of directors met on 21 July 2021 and validated the consolidated statements for 30 June 2021.
Over the period, business activities developed as follows:
• The revenue posted by Digital Services and Solutions (DSS) segment stood at €794 million, up sharply2 by 7.7%, driven by the dynamics of its two business segments, Products & Solutions and Services, up 9.9% and 3.7% respectively. As far as Products & Solutions is concerned, Econocom continues to benefit from the economic recovery in Europe and the ever-increasing demand for digital assets. Services remains well positioned thanks to the ramp-up of higher value-added projects. DSS's ROP1 came out at €44.8 million (vs. €34.1 million in the first half of 2020), i.e. profitability increased 2 to 5.6% (up 100 bp).
• The Technology Management & Financing (TMF) segment is set to pursue its transformation thanks to the recruitment of new commercial talents while continuing to be more selective about picking its commercial contracts. In the first half-year, TMF’s Recurring Operating Profit1 reached €17.5 million (vs. €10.3 million in the first half of 2020), i.e. an increase2 in profitability to 3.9% (up 180 bp). The business in the first half of 2021 generated a €446 million revenue, down 7.5%.
Globally, the group posted revenues of €1,239 million in the first half of 2021, up 1.7% on a like-for-like basis. This performance was achieved in spite of a backdrop of supply and procurement disruptions, which resulted in late deliveries that impacted some activities.