Health crisis has limited impact on Group activities
After growing 5% in the first quarter, revenue decreased, as anticipated, by
11.8% in the second quarter, of which two months (April and May) were
particularly hard hit as a result of the pandemic. That said, the overall
decline in revenue was limited to 3.2% in H1.
The Services business recorded 5% growth in the first quarter followed by a
12.2% decline in the second quarter, limiting the decrease to 3.4% over the
first-half period as a whole.
During the first half of the year, performances differed widely between
The two main sectors hit by the pandemic have been:
- Industry, in which Infotel recorded a very slight decrease despite the slump
in business activity at Airbus (-11% in H1). Revenue from PSA was stable. This
sector now accounts for 26.2% of total revenue compared with 27.8% in H1 2019;
- Services/Transport, with a sharp slump at Air France (-44%). This sector now
accounts for 17.4% of total revenue, compared with 21.9 % in 2019.
In the Banking/Finance sector, revenue increased and now accounts for 39.8% of
the Group total, compared with 35.7% in H1 2019. Infotel notably gained from
strong growth at two clients in this sector (BPCE: +23%, and Banque de France:
Insurance/Pensions sector revenue increased to 13.6% of the Group total,
compared with 12.7%, while that from the Administration sector rose 3%,
compared with 2% in H1 2019.
Infotel's efficient human resources management, which saw substantial numbers
of staff work from home, helped it better manage fluctuations in business
activity. The inter-contract rate was low, at an average of 3.2% for the
first-half period, and subsidised leave under COVID job retention scheme
represented less than 10% of Group full time employees in June.
The Software business chalked up satisfactory growth of 2.9%, with IBM
royalties totalling EUR2.38 million (compared to EUR2.34 million a year
earlier). Infotel is seeing a tendency for clients to extend their maintenance
contracts. New purchasing decisions were scored for the Orlando suite, though
the signature date will depend largely on how the current situation pans out.
Infotel has been seeing signs of a revival in business activity and continues
to enjoy an extremely healthy financial position. The Group therefore remains
optimistic about its profitability and is expecting a brisk end to the year
thanks to the dynamism of its teams.
First-half 2020 results: 16 September 2020
Analyst meeting: 17 September 2020 - 11:30 a.m.
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 2,400 people.