The improvement in Brazilian operations stands out, where EBITDA increased by 103.7% and revenues by 11.2% in local currency.
July 23, 2019 – SONDA, the leading Latin American network of IT Services and Solutions, reported its results for the first half of 2019, in which consolidated revenues reached $407,045 million, equivalent to US$599,3 million, EBITDA totaled $43,802 million, equivalent to US$64.5 million, and net profit was $12,071 million, equivalent to US$17.8 million.
In reporting currency, revenues increased 10.6% compared to the first half of 2018, driven by the growth of all the regions where the company operates: Chile (+7.3%), Brazil (+9.1%), Mexico (+8.1%) and Other Latin American Countries “OPLA” (+23.6%). Additionally, during the second quarter, the revenues growth stood out, reaching 16.0% in a consolidated level and increasing in all the countries: Brazil (+21.9%), OPLA (+28.2%), Chile (+9.1%) and Mexico (+6.4%).
Consolidated EBITDA increased 15.7% in the first six months of 2019, mainly driven by the growth of Brazilian operations (+103.6%). In the same way, the second quarter also showed good dynamism, reaching an increase in EBITDA of +6.0% compared to 2018, a growth that is largely explained by Brazil (+84.7%), which has been showing improvements in results since 2018.
Furthermore, the EBITDA margin reached 10.8% during the first semester of 2019, which represents a higher profitability (50 basis points) compared to the same period of 2018. During the second quarter of 2019 the EBITDA margin reached 11.1%, increasing 70 basis points compared to the 1Q2019. The operation in Brazil highlights, where margins improved sequentially and year-over-year throughout 2018, a trend that has been maintained during 2019. In this context, the second quarter of 2019 registered an expansion of 270 basis points YoY and a sequential improvement of 150 basis points compared to the first quarter of 2019.
In commercial terms, closed deals reached US$624 million during the first half of 2019, driven by a stronger commercial activity in Brazil (+39.9%) and Chile (+10.1%). In this regard, the business closings registered in Brazil during the second quarter of 2019 highlights, representing a growth of 107.8% compared to the same period of 2018. Also, Brazil represented 46.4% of the consolidated closed deals of the company during the first six months of the year.
New business opportunities (“pipeline”) reached US$3,475 million, representing an increase of 8% compared to the figures reported at the end of 2018.
Regarding the results, the CEO of SONDA, Raul Vejar, pointed out “in this second quarter we see how the growth in revenues and EBITDA continues to consolidate in a sustained manner, especially in relevant markets such as Brazil and Chile, keeping us optimists regarding the goals we have set for our Company.” He added that “we continue to work actively in the execution of our Strategic Plan, especially strengthening the business innovation and digital transformation areas, key in the services we deliver to our customers.”