Reditus : rsquo; EBITDA increases 23.6% in the 1st Half of 2017

The areas of IT Consulting and IT Outsourcing have contributed most to this improvement, with positive growth in both Revenues and EBITDA.

Reditus pursued during 1H17 the internal reorganization begun in the last quarter of 2016, following the strategic repositioning of the Group after the sale of the subsidiary ROFF, adjusting its spending structure to the new reality of the Group and creating the conditions for the development of integrated, innovative and higher added value offers, in order to follow the business plan based on the development of its core activities and on higher profitability of its business.

Operating Income amounted to 20.9 million euros in 1H17, reflecting a 5.7% decrease compared to 1H16; it nevertheless represents a positive evolution in relation to 1Q17, due to the decrease in the relative variation in the same period of the previous year (in 1Q17, there had been a drop of 15.3%).

This Revenue contraction derives mostly from the BPO segment within the Client Services area, reflecting the contractual expiration of a large contract from the previous year, the replacement of which by others of equivalent value and higher profitability the Group has been actively pursuing.

In effect and during 1H17, Reditus was able to obtain new businesses within its customer portfolio and to renew existing contracts in the domestic market, in the segments of IT Consulting and IT Outsourcing and throughout a wide range of activity sectors.

Revenue for the International sector registered a significant growth of 28.0% in 1H17, increasing its weight from 29% 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 2,5 million Euros, equivalent to an EBITDA margin of 12.2%, or 2.9 pp above the 9.3% margin reached in the same period of last year.

Net Income from Continued Operations amounted to 64 thousand Euros, an increase of 326 thousand Euros over the same period of the previous year, when a negative value of 262 thousand Euros had been reached.