Q3 2012 financial highlights
- Net revenue €148.2 million, an increase of €15.5 million (+11.7%) compared to Q311 (€132.7 million). The exchange rate impact on revenue was +€6.4 million, compared to Q311.
- Gross margin 19.1% (19.0% in Q311).
- EBITDA €3.8 million compared to €-2.4 million in Q311
- EBITA €2.2 million compared to €-4.8 million in Q311. The exchange rate impact on EBITA was +€0.2 million, compared to Q311.
- EPS -0.3 Euro cents compared to -31 Euro cents in Q311
Comments from the President and CEO
Our top-line growth continued to improve in the third quarter, with revenue increasing by 11.7% compared to the same quarter last year. The lion’s share of the increase stems from organic growth – driven both by the winning of new clients and by higher volumes with our installed client base – while currency effects contributed 4.8 percentage points to overall growth. Whereas revenue fell in the CMS business, all our regions managed to deliver growth, with the North, North America & Asia Pacific and South regions contributing most to the increase. I am confident that we can sustain this momentum for the rest of the year and beyond, as we continue to invest in developing our client relationships and our delivery capability.
EBITA in the third quarter was €2.2 million, compared to an underlying EBITA of €3.9 million in Q311. This performance should be viewed in the context of significant expansion costs during the quarter, amounting to €3.3 million, primarily in the Philippines. Revenue associated with these costs will gradually be ramped up in the coming months. Transcom’s total headcount increased by 1,100 this quarter, to 27,100 people. In order to deliver against contracted volumes, we will continue to expand headcount for the remainder of the year.
To further align our cost base to current business conditions, and to concentrate the focus of our central support teams, we will restructure our corporate organization. These actions will reduce overhead costs by approximately €1.9 million on an annual basis, with full effect from 2013. Restructuring costs amounting to approximately €1.7 million will impact our Q412 results.
This quarterly report reflects previously announced changes in Transcom’s segment reporting structure, namely that our operations in Credit Management Services (CMS) are now managed as a separate business unit. In addition, the Baltic countries now form part of the North region rather than the Central Europe region. The reorganization has triggered a change in the distribution of goodwill. Transcom is therefore assessing the possible impact on goodwill carrying values during the fourth quarter.
Johan Eriksson, President and CEO of Transcom
The interim report is also available for download on www.transcom.com
Results Conference Call and Webcast
Transcom will host a conference call at 10.30 am CET (09:30 am UK time) on Thursday, October 18, 2012. The conference call will be held in English and will also be available as webcast on Transcom’s website, www.transcom.com.
To ensure that you are connected to the conference call, please dial in a few minutes before the start in order to register your attendance.
Sweden: 08-503 364 34
UK: +44 (0) 1452 555 566
US: +1 631 510 7498
For a replay of the results conference call, please visit www.transcom.com to view the webcast of the event.
For further information please contact:
Johan Eriksson, President and CEO +46 70 776 80 22
Marcus Süllmann, CFO +352 691 755 060
Stefan Pettersson, Head of Investor Relations +46 70 776 80 88