CIUDADES DIGITALES:Iniciativa de Cisco, Intel, Informática El Corte Inglés y Microsoft
El Gobierno aprueba el proyecto de 'Ciudad Digital' en Ronda y nuevas actuaciones en León
THE DIGITAL HUB. Ciudad Digital Internacional en Dublin
MADRID COMUNIDAD DIGITAL. Desayuno de Trabajo de la AEC con el Vice-Consejero de Sanidad de la CAM, D. Arturo Canalda, quién destacó que la prioridad de los 2 años próximos estará centrada en mejorar la gestión de la Red Hospitalaria de Madrid
MADRID COMUNIDAD DIGITAL. La Comunidad de Madrid destina 700 millones a 200 proyectos para afianzar su liderazgo en nuevas tecnologías
ADMON. PUBLICA. T-Systems se adjudica por 87 millones los servicios centrales de carácter continuado de la Generalitat de Cataluña
Steria incrementó un 61% su beneficio en 2005
Generalitat de Cataluña adjudica a Colt y Soluziona la gestión y el alojamiento de su plataforma de comunicaciones
Steria First Quarter 2006 revenue: €303.2 million. Total growth: +9%
Steria Ibérica nombra a Rafael Muñoz como nuevo Director de Recursos Humanos
La Diputación de Tarragona aborda el Gobierno Electrónico de la mano de Steria
UK healthcare application provider iSoft is to sell its operations in Switzerland
Health service IT contractor in crisis. iSoft now worth less than when it floated in 2000
Soluziona implantará los Sistemas de Gestión de RRHH de los nuevos Hospitales de la Comunidad de Madrid
First-half 2006 Steria Group Results. Revenue was € 607.2 million, up 4%. Operating margin: 6.3%
El Gobierno de Madrid aprueba 10 M€ en ayudas para el desarrollo de las TI. Los beneficiarios serán empresas con proyectos innovadores
Steria Group. Third quarter 2006 revenue: €298.4 million. Organic growth: 10.9%
Indra desarrollará un sistema de diagnóstico digital en el Parque Tecnológico Walqa de Huesca
Steria 2006 Revenue: €1,262 million, Organic growth: 7.4%
El Grupo Steria alcanza un beneficio bruto del 7,1% en 2006
Steria adds to its Group management team to support its growth.
El Ayuntamiento de Rivas Vaciamadrid se apoya en Steria para iniciar una estrategia de e-Administración basada en OpenSource
Steria targets 10% operating margin in the mid-term
03/03/2007
French IT services vendor Steria achieved an operating margin of 7.1% in 2006 (up from 5.6% in 2005), on revenues that reached €1,262 million (up by 7.4%). The company has reaffirmed its intention to reach €2 billion in sales by 2008 and targets an operating margin of around 10% in the mid-term.

OVUM. Dominique Raviart

Comment:

Since its acquisition of Integris (an important part of Bull Services) in 2002 Steria has improved its operating margin year after year from 3.1% in 2002 to 7.1% in 2006. The performance is not stellar but signals steady improvement in a market environment that from 2002 to 2004 was clearly not favourable. The performance is strong in its domestic market: revenues are up by 10.3% to €533 million and operating margin improved to 9.3% in 2006 (from 8.3%). This positions Steria as one of the most profitable players in France, ahead of Sopra, GFI, Atos Origin and Capgemini.

It is worth noting Steria's performance in infrastructure management, an area where it derives 9.5% in operating margin on revenues that reached €537 million in 2006 (up by 10%). The company puts this overall strong achievement down to three things. First, Steria carefully selected where it wanted to play in infrastructure management - it selected Microsoft and Unix technologies and turned its back on mainframe management where it felt competitive pressure was intense. Second, it recognised that client satisfaction would lead to contract extension which in turn enhances profitability. Thirdly, since the acquisition of Integris, the company has worked on industrialisation and consolidated datacentres.

Ironically, Steria's consulting and systems integration (including application management) operating margin at 7.2% in 2006 (up from 4.9% in 2005) is lower than in outsourcing. And this is where Steria has the most potential improvement with its German operations now back to full profitability in H2 of 2006, consulting driving margins up and Spain now back to profitability. Meanwhile, revenue growth (5.6%) in consulting and system integration was affected by the sale of a hardware business in Northern Europe. Excluding this sale, revenue growth reached 7% organically in this business unit. In other words, Steria grew in line with the market, despite the restructuring. With Steria building up its solution portfolio and its Nordic and Spanish subsidiaries now realigned and in better shape, we think the improvement story in project services is credible and likely.

In light of these solid but unexciting 2007 results, we look forward to 2007. In particular we will be monitoring the ambitions of Steria in low cost countries such as Morocco, Eastern Europe, Spain and India. We estimate that Steria wants to grow its Indian headcount to 800. Steria's reinvention process is hardly over.