LINEDATA

Half year results 2020: Net margin rate stable at 9.7%

            
Half year results 2020:
Net margin rate stable at 9.7%

	H1 2019	H1 2020	Change
REVENUE	84.8	78.5	-7.4%
EBITDA % of revenue	21.5 25.4%	18.4   23.4%	-14.6%
OPERATING PROFIT % of revenue	13.3 15.7%	9.8   12.5%	-26.4%
NET INCOME % of revenue	8.2 9.7%	7.6   9.7%	-7.4%

          Rounded, audited figures (€M)

Neuilly-sur-Seine, September 9, 2020 – Linedata (LIN:FP), a global solutions and outsourcing services provider for asset management, insurance, and credit professionals, showed a moderate decline in its profitability indicators for the first half of 2020 in a global economic environment impacted by the Covid-19 health crisis.

The Group achieved half-year revenues of €78.5 million, down 7.4% compared to the first half of 2019. This erosion of revenue is more pronounced in client segments that rely more heavily on consulting and customization resources, due in particular to difficulties for employees to access client sites. Conversely, SaaS (Software-as-a-Service), recurring license rental fees and maintenance are trending well with an overall growth of €1.4 million in recurring income to €64.5 million, representing 84% of total turnover.

EBITDA stood at €18.4 million, down 14.6% compared to the first half 2019. The €3.1 million decrease is explained, on the one hand, by the contraction in half-yearly revenue and, on the other, by Linedata’s desire to retain its talents and accelerate the major transformation projects of the Group’s offerings. As a result, many consulting and research resources were reallocated to strategic R&D projects focused on the future. This figure also includes €1.0 million in restructuring costs. The EBITDA margin remains robust at 23.4%, down only 2 points compared to the first half of 2019.