Reditus : rsquo; EBITDA increases 50.5% in first nine months of 2017
December 04, 2017 at 07:28 am EST
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The successful strategy followed by the Group subsequent to the sale of the former subsidiary ROFF, comprising an internal reorganization and a focus on core activities - centred on innovative and higher value added offers - have, together with on-going efforts on rationalization of operating costs and overheads, afforded an increased profitability of the business and explains the positive evolution of the results for the first nine months of the year (9M17).
The Operating Revenue shows a 6.9% decrease to 31,5 million euros - compared to 33,9 million euros in the same period - the improvement in contribution margins of the different Group operations lead to a 50.5% YOY Group EBITDA increase.
The revenue contraction derives mainly from the BPO segment of the Client Services sector, and reflects the term of a large contract from the previous year and which the Group has consistently been replacing for others of equivalent value and increased profitability. We were as a result able to obtain several contracts from within our installed customer base, both new and renewals of existing contracts, and also to acquire new clients, all of which will contribute to better results of the BPO segment through the coming periods.
The IT Consulting and IT Outsourcing sectors were the main contributors to the Group's improved results, showing positive growth in both Revenues and EBITDA, with new clients and renewals of existing contracts in the domestic market.
Revenue for the International sector registered a growth of 5.3% in 9M17, increasing its weight from 35% to 40% relative to the Group's overall Revenue. The strategic commitment to the African market, with a focus on the three geographies where the Group has subsidiaries namely Angola, Mozambique and Equatorial Guinea, has led to a growth in business volume due to the beginning of new projects and to the continuation of those where the Group has already an on-going history.
The Group expects to continue actively searching during the coming months for new international market opportunities in those geographies, as well as for Nearshore projects, with the aim at consolidating its business growth.
EBITDA reached 3,9 million Euros, equivalent to an EBITDA margin of 12.5%, or 4.8 pp above the 7.7% margin reached in the same period of last year.
Net Income from Continued Operations amounted to 92 thousand Euros, an increase of 1,5 million Euros over the same period of the previous year, when a negative value of 1,4 million Euros had been reached.
Reditus SGPS SA published this content on 04 December 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 04 December 2017 12:26:09 UTC.
Original documenthttp://www.reditus.pt/en/communication/news/reditus-ebitda-increases-505-first-nine-months-2017
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Reditus SGPS, S.A. is a leading Portuguese computing services provider. Net sales break down by activity as follows:
- business process outsourcing services (53.1%): contact center management, telemarketing, customer relationship management, mail processing, document management and archiving, digitization services, loan treatment, etc.;
- integration and management of computer systems (32,1%): deployment of network systems, Internet and security applications, software development, maintenance and training services, computer fleet management, etc.;
- information technology consulting services (14,8%).
Portugal accounts for 76.6% of net sales.
REDITUS SGPS, S.A. 
