Ordina N.V. results first quarter 2015

Turnover declines, limited impact on margin - Seite 2

 

Technology & Competencies
The Technology & Competencies division designs and builds applications for our clients in the form of secondment, sourcing and project contracts for both out of the box and tailor-made solutions. Turnover declined by 12.3% to EUR 41.3 million (Q1 2014: EUR 47.1 million). This decline was largely due to a drop in the number of public sector projects and a decline in demand from a number of large clients in the energy and telecom sectors who are currently implementing cost reduction programmes.

Business Consulting & Solutions
The Business Consulting & Solutions division advises clients on how they can improve their processes and IT systems. The division also combines business know-how and technical expertise to devise sustainable solutions in the field of business intelligence, (digital) client interaction, chain integration and security. Turnover declined by 3.6% to EUR 14.0 million (Q1 2014: EUR 14.6 million). Corrected for the downsizing of the generic activities of Ordina Consulting Public and the sale of Fundation (impact Q1: EUR 1.2 million), turnover was up 5.0% as a result of new projects for clients in the carriers and mainports sector and growth at a number of smaller financial institutions.  

Application Management
The Application Management division is responsible for management, maintenance and renovation of applications in the form of long-term contracts. Turnover was up 3.3% at EUR 14.4 million (Q1 2014: EUR 13.9 million). Turnover was up primarily at a number of clients in the carriers and mainports sector.

Belgium/Luxembourg
Turnover in the Belgium/Luxembourg division rose by 4.5% to EUR 18.8 million (Q1 2014: EUR 18.0 million). The increase in turnover was largely on the back of growth at large clients in the industry and financial services sectors in both Belgium and Luxembourg.

Sourcing
The Sourcing division acts as strategic partner for large clients, helping them to improve the added value of hired-in IT personnel. Client-specific improvement programmes in the field of productivity improvements, talent development, know-how exchange and innovation are an integral part of this approach. As from 2015, Sourcing is no longer reported as a separate division but deployed on a broader scale for the clients of all divisions in the form of a differentiated delivery model. As from 1 January 2015, the turnover and costs of the sourcing model will be reported in the results of the divisions delivering the services in the Netherlands.