ICT services provider Econocom Group reported a drop in recurring operating profit for the first half, to EUR 34 million from EUR 58 million. In line with its earlier profit warning, the company has cut its forecast for full-year results, according Telecompaper. Revenues for the first six months rose 12.8 percent to EUR 1.319 billion, including 3.8 percent like-for-like growth. While Services and Products & Solutions posted organic growth of respectively 4.8 percent and 6.7 percent, the Technology Management & Financing business had a difficult quarter with several deals postponed, leading to a 6.3 percent organic decline. Profit at Technology Management & Financing was also affected by EUR 9 million in provisions, and the group took in total EUR 20 million in charges for restructuring, particularly for Services in France.
Econocom said its fundamentals remain strong and to underline this, the board authorised a share buyback of up to EUR 30 million, equal to 5 percent of outstanding shares. This programme should be implemented over the next ten months, depending on market conditions.
The company reiterated the reduced full-year forecast issued early in July, for a drop in recurring operating profit to EUR 120 million. More details on the restructuring efforts will be given in September, when it presents the final H1 results.
