Sopra Steria: Preliminary Results for H1 2024
Full-year organic growth target adjusted
Operating margin target confirmed
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The results for first-half 2024 will be presented taking into account, from
1 January 2024 , the classification as assets held for sale (IFRS 5) of the activities ofSopra Banking Software whose sale is expected to be finalised by the end ofSeptember 2024 . - Revenue for H1 2024 is estimated at €2,949.4m, equating to total growth of 3.8% and organic growth of 0.3%.
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Due to the emergence in June of a highly uncertain environment in
France , the recent announcement of short-term difficulties in the aeronautics sector and the delayed ramp-up of a significant contract in theUnited Kingdom , it is not foreseeable that the level of growth will increase significantly in the second half of 2024. -
However, the operating margin on business activity for H1 2024 is estimated at 9.7%, up 0.9 points from H1 2023. The classification of the activities of
Sopra Banking Software as assets held for sale is estimated to have a positive 0.5-point impact (positive 0.2-point impact on a full-year basis). - The net margin for continuing operations in the first half of the year is estimated at more than 5.5% (compared with 4.3% in the first half of 2023), before taking into account net profit from discontinued operations and minority interests. The net margin for continuing operations after deducting minority interests is also estimated at more than 5.5% (vs 4.0% in the first half of 2023).
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For financial year 2024, in line with the first half of the year,
Sopra Steria is targeting a relatively stable level of revenue on an organic basis, and an operating margin on business activity of at least 9.7%.
Cyril Malargé, Chief Executive Officer of
“Several external events that took place in June need to be taken into account in our revenue growth outlook for the second half of 2024. The environment became far more uncertain in
Conference call
A bilingual (French and English) conference call will be held today (Thursday, 18 July) at
- French-language phone number: +33 (0)1 70 37 71 66
- English-language phone number: +44 (0)33 0551 0200
Practical information about this presentation can be found in the ‘Investors’ section of the Group’s website: https://www.soprasteria.com/investors
The quiet period will resume this evening at the end of the conference call. The final results for the first half of 2024 will be presented, as previously announced, to financial analysts and investors in a French/English webcast on Wednesday,
Upcoming financial releases
Wednesday,
Thursday,
Glossary
- Restated revenue : Revenue for the prior year, expressed on the basis of the scope and exchange rates for the current year.
- Organic revenue growth : Increase in revenue between the period under review and restated revenue for the same period in the prior financial year.
- EBITDA : This measure, as defined in the Universal Registration Document, is equal to consolidated operating profit on business activity after adding back depreciation, amortisation and provisions included in operating profit on business activity.
- Operating profit on business activity : This measure, as defined in the Universal Registration Document, is equal to profit from recurring operations adjusted to exclude the share-based payment expense for stock options and free shares and charges to amortisation of allocated intangible assets.
- Profit from recurring operations: This measure is equal to operating profit before other operating income and expenses, which includes any particularly significant items of operating income and expense that are unusual, abnormal, infrequent or not foreseeable, presented separately in order to give a clearer picture of performance based on ordinary activities.
- Basic recurring earnings per share : This measure is equal to basic earnings per share before other operating income and expenses net of tax.
- Free cash flow: Free cash flow is defined as the net cash from operations; less investments (net of disposals) in property, plant and equipment, and intangible assets; less lease payments; less net interest paid; and less additional contributions to address any deficits in defined-benefit pension plans.
- Downtime: Number of days between two contracts (excluding training, sick leave, other leave and pre-sales) divided by the total number of business days.
Disclaimer
This document contains forward-looking information subject to certain risks and uncertainties that may affect the Group’s future growth and financial results. Readers are reminded that licence agreements, which often represent investments for clients, are signed in greater numbers in the second half of the year, with varying impacts on end-of-year performance. Actual outcomes and results may differ from those described in this document due to operational risks and uncertainties. More detailed information on the potential risks that may affect the Group’s financial results can be found in the 2023 Universal Registration Document filed with the Autorité des Marchés Financiers (AMF) on
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Investor Relations
Olivier Psaume
olivier.psaume@soprasteria.com
+33 (0)1 40 67 68 16
Press Relations
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+33 (0)1 53 70 74 65
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