SONDA increases EBITDA by 23.0% in 2Q07 (YoY)
During the second quarter of 2007 (2Q07), SONDA’S revenues grew by 7.2% when compared to the same period in 2006 (2Q06) and reached Ch$ 52,833 million (US$ 100.3 million), mainly driven by the IT services business growth. Similarly, operating income scaled up to Ch$ 5,413 million (US$ 10.3 million) in 2Q07, with a 5.6% improvement when compared to 2Q06, as a result of greater revenues from businesses with higher margins.
With a 23.0% growth, EBITDA reached Ch$ 9,987 million (US$19.0 million), reflecting the better operating results of 2Q07. Operating margin reached 10.2% in 2Q07, similar to the same period of 2006, and EBITDA margin improved from 16.5% to 18,9%.
Net income amounted to Ch$ 3,820 million (US$7.3 million) in 2Q07, showing a 11.3% decline when compared to the same period of 2006, mainly driven by a greater level of taxable income and a significant reduction in the amortization of negative goodwill. Net margin moved from 8.7% in 2Q06 to 7.2% in 2Q07.
A 62.6% of revenues came from IT services in 2Q07, 32.0% from the platforms business and 5.4% from applications. By region, business in Chile contributed with 69.2% of total revenues, Brazil with 13.6%, Mexico with 7.2% and ROLA (rest of Latin America) with 10.0%.
Mexico increased 228.6% its operating income and reached Ch$ 323 million (US$ 0.6 million) in 2Q07. Chile amounted a similar total when compared to 2Q06, while Brazil and ROLA reduced 32.2% and 11.6% their respective operating income. On the other hand, EBITDA improved in most of the countries, showing a 22.5% growth in Chile, 304.8% in Mexico and 5.4% in ROLA at the end of the second quarter of 2007. On the other hand, Brazil reduced its EBITDA by 21.9% in this period.
HIGHLIGHTS
Acquisition in Brazil. Last June 27th, 2007, SONDA announced the acquisition of a 100% stake in Brazil’s Procwork in a deal valued at US$ 118 million. Procwork, with 17 years of experience in the Brazilian market, is a leader in consulting, systems integration services, and IT solutions in that country. Its revenues totaled R$ 257 million in 2006, equivalent to approximately US$ 132 million. Besides, it has a customer base of more than 600 clients, among whom are two thirds of the Top-100 companies in Brazil. SONDA with this acquisition becomes one of the largest and most relevant players in the IT Services industry of that country, offering a wide range of IT services to a blue chip customer base. The US$ 118 million investment in Procwork, is part of the 2007-2009 investment plan established by SONDA last year, intended to consolidate its leading position in Latin America through acquisitions in the main markets of the region.
Signature of deals for a total of US$ 98.3 million. During the second quarter of 2007, SONDA has signed a relevant volume of deals with a diversified range of customers including contracts of up to five years. Out of these, US$ 47.9 million were related to business in Chile, US$ 26.4 million to business in Brazil, US$ 15.5 million to business in Mexico and US$ 8.5 million to business in the rest of the countries where the company runs its operations.
Improved margins in Brazil and Mexico: As a result of the restructuring and efficiency plans started in Brazil and Mexico last year, a sustained margin improvement is noticeable in those countries’ operations.
