- Order intake rises 8% to €2.11 bn, outstripping revenue by 12%.
- 8% increase in international sales offsets decline in the Spanish market.
- The backlog grows 14% to €2.82 bn.
- Recurring profit up 3%.
Indra’s performance was in line with company expectations in the first nine months of 2010. Considering the high visibility into the latter part of 2010, the company is confident of meeting all its stated targets for the year even though market conditions have been tougher than expected, above all in Spain.
Sustained, strong growth in order intake
Order intake through to September rose 8% to €2.11 bn, 12% above the revenue figure for the period. Revenue in the international market remained robust, rising 18%, and increased by 2% in the domestic market. With order intake growing consistently at around this level since the early part of 2010, Indra will post order intake growth for the full year of at least 7%, two percentage points above its initial target for 2010 (5%), as stated following the end of the first half.
Revenue in the first nine months of the year totalled €1.88 bn, broadly unchanged from the same period last year. In the international markets, revenue continued to grow at a healthy pace of 8%, driven mainly by the strong performance in Latin America. Meanwhile, revenue in the domestic market was down 5%, with business in the more institutional sectors continuing to struggle.
By vertical markets, Transport & Traffic, Telecommunications & Media and Financial Services all performed well, with revenue growth of around 10%. In contrast, Security & Defence and Energy & Industry sustained double-digit declines in revenue.
Revenue coverage relative to 2010 guidance of 97%
The order backlog through to 30 September 2010 increased by 14% year-on-year to €2.82 bn, 1.1x revenue for the last 12 months.
Judging by the amount of the order backlog to be executed over the last quarter of the year, revenue coverage relative to 2010 guidance stands at over 97%, which, when read in conjunction with operations currently underway, provides full confidence that guidance will be met.
Nine-month net profit totalled €143 m, down 5% from last year due to the impact of one-off expenses. Excluding extraordinaries, net profit was up 3%. The recurring EBIT margin (i.e. EBIT before one-off expenses/revenue) reached 11%.
Meeting 2010 targets
Market conditions over 2010, particularly in the Spanish market, have remained weak. That said, Indra is confident of meeting all its 2010 objectives announced at the start of the year:
- Order intake looks set to increase by at least 7%, above the initial target of 5% announced at the beginning of the year and subsequently revised upwards.
- Revenue is on track to increase by 2%, within the target range (in the lower part announced at the beginning of the year). The domestic market will fall slightly in the year as a whole, while the international market will turn in growth of approximately 10%
- The recurring EBIT margin (before one-off expenses) should end the year at around 11.2%, in line with the target of maintaining a level near last year’s (11.4%).
2011 targets
As in recent years, with the preliminary close of 2010, Indra will release its assessment of the situation and prospects for the markets in which it operates, along with its guidance for 2011. In this regard, the order backlog at 30 September 2010 includes more than €1 bn of revenue from projects to be executed during the course of 2011. This figure is 3% higher than contracts pending execution in 2010 at 30 September 2009 and accounts for more than 40% of revenue for the last 12 months.
Dividend payment charged to 2009
On 5 July, Indra paid an ordinary dividend charged to 2009 profit of €0.66 per share, gross. This was 8% higher than the ordinary dividend charged to 2008 profit and implies a pay-out of 55%, in line with the ordinary dividends paid in recent years.
KEY FIGURES
The following table lists the key figures for the period:
|
INDRA
|
9M10 (€M)
|
9M09 (€M)
|
Variation (%)
|
|
Order Intake
|
2,112.2
|
1,948.2
|
8
|
|
Revenues
|
1,878.6
|
1,878.9
|
(0)
|
|
Backlog
|
2,817.8
|
2,466.8
|
14
|
|
EBIT (before non recurrent extraordinary costs)
|
206.1
|
214.7
|
(4)
|
|
EBIT margin (before non recurrent extraordinary costs)
|
11.0%
|
11.4%
|
(0.4) pp
|
|
Net Operating Profit (EBIT)
|
190.8
|
214.7
|
(11)
|
|
EBIT Margin
|
10.2%
|
11.4%
|
(1.2) pp
|
|
Recurrent Attributable profit
|
155.6
|
151.6
|
3
|
|
Atributable Profit
|
143.4
|
151.6
|
(5)
|
|
Net debt position
|
310.9
|
283.3
|
10
|
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