SONDA Net Profit reached $ 8,004 million during the first quarter of 2020

04, May 2020.- SONDA, the main Latin-American IT service network, reported its results for the first quarter of 2020, with consolidated revenues that reached $ 215,570 million, equivalent to US$ 253 million, EBITDA of $ 14,564 million, equivalent to US$ 17.1 million, and net profit of $ 8,004 million, equivalent to US$ 9.4 million.

In reporting currency, revenues grew 10.5% YoY boosted by the growth achieved by the majority of the regions where the company operates. In the quarter, we highlight the growth of Other Countries of Latin-America (OPLA), Brazil and Chile, which registered better revenues by 19.0%, 17.5% y 8.9%, respectively.

On the other hand, EBITDA registered a decrease of 28.1% compared to the first quarter of 2019, Mainly explained by the sale of Transacciones Electrónicas Dos S.A. in Chile in September 2019, by a delay of projects execution in Brazil during March and by extraordinary effects in 2019 in Mexico and Brazil, that were not repeated this year. We highlight better performance of OPLA during the first quarter, with an EBITDA expansion of 42.3% compared to 2019. Moreover, EBITDA margin reached 6.8% in the period.

Net profit for the period reached $ 8,004 million representing an increase of 68.4% compared to the first quarter of 2019, figure explained by positive non-operational results and income tax.

In terms of commercial activity, business closed reached US$ 255.4 million, of which 82.8% come from new contracts. Highlights the better dynamism in Mexico and OPLA, with expansions of 29.2% y 17.9%, respectively, during 1Q20. At a regional level, Chile contributed with 47.4% of total business closed, Brazil with 31.4%, Mexico with 4.5% and OPLA with 16.7%.

Pipeline reached US$ 4,102 million, which represents an increase of 9.7% compared to 1Q20. Highlights the increase showed by Chile of 42.9%, by Brazil of 9.7% and OPLA of 3.7%.

Referring to these results and to the context of the sanitary crisis, the General Manager of SONDA José Orlandini signaled that “the start of 2020 has been marked by the Covid-19 and the uncertainty that generates the magnitude of its impact in people, companies and the world economy. In relation to this emergency, we have adopted a series of measures in the countries where we operate that, alongside protecting the health of our employees and clients, allow us to continue offering services in times where technology plays a fundamental role. Today 70% of our employees in Latin-America work remotely, he mentioned”. Likewise, he added that “the results of the first quarter has so far shown, despite the crisis, an interesting dynamism in revenue generation in the main markets where we operate. Finally, he mentioned that “the actual scenario has forced us to adjust our activities in the short term, while pursuing the objectives of our Strategic Plan 2019 – 2021. We have taken the necessary actions to focus our commercial efforts, adequate our processes, ervices and organization and a cash management that allow us to deal with the effects that this pandemic could cause on SONDA. Overall, we are confident that we will come out strengthened from this crisis, boosting decisively our Strategic Plan and supporting our clients in their processes to improve and transform their businesses.”