An update by Infotel on the effects on its activity from the Covid-19 epidemic.
Impact on activity
The Covid-19 epidemic and the related confinement measures have had a moderate
impact on Infotel's activity so far.
Infotel has been able to continue providing services to the majority of its
clients while also implementing the necessary measures to protect its
The impacts on its activity vary according to the activity sector:
* In Banking/Insurance (36.2% of the 2019 revenue of the Services activity),
none of the Group's projects have been deferred or cancelled. Certain clients
in this sector have even signed new contracts to strengthen intervention by
Infotel's teams in this particular environment.
* In Services/Transport (21.2% of the 2019 revenue of the Services activity),
Air France-KLM has, at present, halted nearly 90% of its activity and
therefore has virtually suspended most services. In 2019, Air France-KLM
accounted for 6.3% of the Group's full-year revenue.
* In Industry, and in aerospace in particular, the stoppage by Airbus of half
of its production has led to a freeze on services in April. Activity should
resume gradually from May.
In terms of employment, Infotel took immediate steps in view of the situation:
remote working by almost all staff, short-time work, use of holiday leave and
days off under the 35-hour work week, reduction of some outsourcing, a freeze
on recruitment and youth training programmes.
Objectives pending revision
Given the expected economic slowdown and the uncertainties around the pandemic,
Infotel, after an excellent start to the first quarter, anticipates a decline
in activity in the second quarter but is unable for now to provide an estimate
of its effects as they will depend on how long the confinement measures remain
in place and the pace at which activity resumes around the country.
Consequently, and for as long as visibility remains at this uncertain level,
the Group cannot provide specific revenue and profitability objectives.
Thanks to a very solid financial position, with zero financial debt and net
cash at the end of the 2019 financial year of EUR74.6 million, Infotel has the
necessary resources to get through this crisis. Nevertheless the Board of
Directors has decided that it will no longer propose a dividend of EUR1.60 per
share for the 2019 financial year. A new dividend proposal will be submitted to
the Shareholders' Meeting of 20 May 2020.
General meeting behind closed doors
Given the uncertainties resulting from the current context linked to Covid-19,
the General Meeting of May 20, 2020 at 2:30 p.m. will be held at the registered
office, without the physical presence of the shareholders.
Publication of Q1 2020 revenue: 20 May 2020
Listed on Compartment B of Euronext Paris since January 1999 (ISIN code
FR0000071797), Infotel specialises in information management systems for major
accounts, from mobile to very high-volume databases (Big Data). Operating at
the forefront of technological innovation, Infotel develops its expertise
across two complementary divisions: IT services and software publishing.
Infotel posted revenue of EUR248.4m in 2019 and employs over 2,500 people.