Econocom reports organic revenue growth over 11% in 2017

European IT services group Econocom said preliminary revenues rose 17.5 percent from the year before in 2017 to USD 2.980 billion, with strong dynamics across all business lines and organic growth lifting 11.2 percent, well over guidance. The group's leading business line, Technology Management & Financing (TM&F), reported revenue up 9.5 percent to EUR 1.378 billion, with growth entirely organic. Revenue for Services passed EUR 1 billion for the first time, jumping 25.5 percent to EUR 1.007 billion, 12.7 percent of which was organic. Growth at Products & Solutions amounted to 25.2 percent, 12.7 percent of which was organic. 

Alongside the progression in its core 'Planet' business, Econocom said that the group’s smaller subsidiaries, referred to as 'Satellites', posted double digit organic revenue growth. These subsidiaries, mainly acquired in recent years, are part of the company’s diversification strategy. 

Econocom said it has achieved the objectives of its Mutation 2017 strategic plan, namely a two-fold increase in both revenue, standing at EUR 3.0 billion, and recurring operating profit, to over EUR 150 million in 2017, from 75 million in 2012. 

COO Robert Bouchard said the company will now begin its new “e for excellence” strategic plan. Under this plan, it is aiming for revenue of EUR 4 billion and an almost twofold increase in operating profit to EUR 300 million by 2022, with a focus on quality of service, synergies between business lines and increasing value added. Achieving these targets will require continuing investments in equipment, people and finance, he said. 

As part of the new strategic plan, the group’s executive board has been further expanded with the appointment of David Krieff as executive director and MD for the group. In addition, all the Planet’s Services divisions in France (Outsourcing, Infrastructures, Application Development and Telecoms) have been merged into a single Services France practice overseen by Laurent Roudil, who was appointed MD of Services France and deputy MD France.