– Revenues rise by 15.5% in first six months ended September 30, 2021, from MEUR 505.6 to MEUR 584.2
– Americas region achieves highest increase in revenues of 29.6% to MEUR 107.3
·- Very strong earnings growth: EBITA rises almost five-fold to MEUR 30.6 after MEUR 6.2 in first half of previous year
– New fiscal year from April 1, 2021 to March 31, 2022
NTT DATA Business Solutions AG has seen its revenues surge by 15.5% year-on-year to MEUR 584.2 (MEUR 505.6) in the first half of its new fiscal year despite a consistently challenging environment. Following the change of the fiscal year, which was implemented at the same time as the renaming of the former itelligence AG, the first half of the year now covers the period from April 1, 2021 to September 30, 2021. This rise in revenues in the first six months of the fiscal year was thanks to both organic growth of 13.0% and growth through acquisitions of 2.5%. EBITA likewise climbed significantly in the first half of the year and at a faster rate than revenues to MEUR 30.6 after MEUR 6.2 in the first half of the previous year, which was greatly impacted by the coronavirus pandemic. Orders on hand at NTT DATA Business Solutions AG amounted to around BEUR 1.3 as of September 30, 2021, higher than the previous year’s level of around BEUR 1.08 as of September 30, 2020.
Norbert Rotter, CEO of NTT DATA Business Solutions AG, commented: “There is again strong demand for SAP consulting business all over the world, which is leading to high capacity utilization among our consultants in particular. New products such as “Rise with SAP” are being well received by SMEs. The transformation to cloud subscription models is in full swing. Our solutions for specific sectors (such as pharma and life sciences) are being marketed very successfully.”
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In the individual revenue areas, consulting business improved by 28.6% from MEUR 205.6 in the first half of the previous year to MEUR 264.3. Licenses declined slightly from MEUR 24.7 to currently MEUR 23.1 (-6.5%). By contrast, Cloud Subscription reported an increase of 40.4% in the amount of MEUR 25.7 after MEUR 18.3 in the previous year. Managed Services continued to impress following solid growth in recent years, with an upturn of 6.3% from MEUR 252.9 to MEUR 268.9. The Other segment generated revenues of MEUR 2.2 after MEUR 4.1.
Revenues in the DACH segment, the largest segment in terms of revenues, continued to rise to MEUR 252.4, an increase of 11.4% on the prior-year figure of MEUR 226.6. Revenues in Western Europe improved by 18.8% in the first half of the year from MEUR 74.0 to currently MEUR 87.9. North and Eastern Europe (NEE) achieved significant growth of 14.2% to MEUR 101.3 after MEUR 88.7. The Americas region enjoyed the strongest increase in revenues, rising by 29.6% to MEUR 107.3 after MEUR 82.8 in the first half of the previous year. Finally, revenues in Asia increased slightly by 4.3% to MEUR 31.2 in the first half of the year after the previous year’s figure of MEUR 29.9. The Other segment contributed revenues of MEUR 4.1 after MEUR 3.6 in the previous year.
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In the first half of the year, NTT DATA Business Solutions AG’s earnings situation benefited to a very significant degree from the positive performance in revenues, and in particular from the higher consultant capacity utilization and the cost and efficiency measures implemented: EBITA increased almost five-fold (+396.8%) from MEUR 6.2 to MEUR 30.6 in the first half of the year. The EBITA margin climbed accordingly from 1.2% to 5.2% – a figure targeted before the pandemic. The operating cashflow amounted to MEUR 50.3 in the first six months, almost double the MEUR 23.1 reported for the same period of the previous year.
Jürgen Pürzer, CFO at NTT DATA Business Solutions AG since March 1, 2020, said: “After a previous year that was modest overall, we are fully on track again in terms or earnings and cashflow in the current fiscal year. We have thus been able to achieve a fundamental improvement in all our earnings indicators.”
For the fiscal year from April 1, 2021 to March 31, 2022, the Management Board of NTT DATA Business Solutions AG is forecasting further increases in revenue and earnings figures, with growth in revenues to between BEUR 1.083 and BEUR 1.104 and an operating EBITA margin of more than 5%.
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