Indra reported Thursday that revenues increased by over 6 percent in the first half of 2019, with the acklog amounting to €4,420m, resulting again in the best-ever figure. Order intake reached €1,930m, the company said.
According to Indra, revenue expansion accelerated in the second quarter of the year, with both T&D and Minsait posting growth. It is worth noting America (+15%), the company said, adding that Minsait sales increased by +6%. Digital solutions revenues up +18% and now it represents 22% of Minsait sales.
EBITDA was up +7% excluding the IFRS 16 impact and EBIT grew +8%.
Minsait EBIT Margin improved 220 basic points and went up to 2.8% despite the lower contribution of the Elections business.
On the downside, Indra noted that net profit of the group worsened -8% mainly as a consequence of higher taxes.
Free Cash Flow totaled €-237m in the first half of 2019 versuss €-61m for the same period last year, impacted by the negative contribution of the working capital. Free Cash Flow before working capital was €72m in the first half of this year, versus €48m for the same period in 2018.
Speaking on the results, Fernando Abril-Martorell, Chairman and Chief Executive Officer of Indra said that the, “First half 2019 results are marked by the acceleration of revenue and order intake growth in almost every business and geography where Indra has presence, with our backlog reaching another historic high, as well as by the profitability improvement, boosted by Minsait”.
“T&D and Minsait accelerated their revenue growth in 2Q19, with Transport and Energy & Industry standing out at double digit rates. Digital solutions revenues grew +18% in the half-year,” Abril-Martorell said, adding, “Furthermore, all geographies reflected growth acceleration except for Spain, which stabilized. Latin America posted another sound quarter, with Brazil and the main countries showing revenue expansion, both in local currency and reported figures, and with a significantly lower FX impact vs 2018”.
“Indra improved its profitability in first half 2019, with Minsait standing out and posting profitability improvement of 220 basic points despite the lower contribution of the Elections business,” Abril-Martorell said
“Cash generation in first half 2019 was affected by the strong seasonality of the working capital, by the revenue growth and other operating items. Working capital evolution will improve during the following quarters thanks to the normalization of the delays in milestone collections concentrated in big projects and the own seasonality of the business”.
According to Abril-Martorell, first hald 2018 results are in consonance with the company’s revenue and profitability prospects for the year (Guidance 2019).
“Our management effort is fully focused on achieving all the targets for 2019, with special attention to the profitability (EBIT) of our operations and the working capital.” Abril-Martorell said.