The integration of former Société Générale
subsidiary ECS has led to a drop in net profit at French IT and
telecoms funder Econocom.
Profit fell 25% in 2011 to €21.5m from the
2010 total of €28.8m, however, recurring operating profit, before
amortisation of the ECS customer portfolio at €2m per year, was up
40% to €66.6m
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The integration of ECS, which Econocom
acquired in late 2010, resulted in €14.9m of one-off operating
costs, according to a statement from the company.
The firm also paid off the bank loan which
facilitated the acquisition early, at a cost of €6.1m, which leaves
Econocom with zero net financial debt as of 31 December 2011.
The technology funder did enjoy record
revenues in 2011, up to €1.58bn from €1.02bn in 2010. On a
like-for-like basis, given the 2010 figures take into account three
months of ECS’ activity compared with 12 months in 2011, growth was
up 5%.
The results exceeded Econocom’s targets for
the year which aimed for €1bn revenue and €60m recurring
profit.
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By GlobalDataFor 2012, Econocom has targeted a slight rise
in revenue, recurring operating profit of over €70 million, and net
profit per share around €2. In its statement, the firm’s management
said it is in an ideal position to continue its profitable combined
growth strategy.
grant.collinson@vrlfinancialnews.com
