Amsterdam, 03 May 2006
Getronics is announcing today an unaudited trading update for Q1 2006. The Company will provide consolidated interim results at the half-year stage. First half-year results are scheduled to be announced on 2 August 2006. No conference calls have been planned nor have other meetings been organised to discuss today's trading update.
Update Q1 2006*:
Total revenue increased 26% to EUR 658 million (Q1 2005: EUR 523 million), mainly due to the acquisition of PinkRoccade;
Service revenue increased by 37% to EUR 574 million (Q1 2005: EUR 419 million), mainly due to the acquisition of PinkRoccade;
On a comparable basis,** there was strong service revenue performance in the Netherlands (6.2%) and in the Rest of Europe (6.3%) and modest growth in Latin America (2.8%) and APAC/Japan (1.7%), which was partly offset by the negative developments in North America (-18.7%) due to the loss in 2005 of substantial parts of 2 major contracts;
Total service revenue growth on a comparable basis was 1.2% in Q1 2006;
Service revenue per average employee increased in Q1 2006 by 11% to EUR 22,717 compared to EUR 20,515 in Q1 2005;
Product revenue decreased by 19% to EUR 84 million (Q1 2005: EUR 104 million), as the Company continues to de-emphasise non-service related product sales;
Revenue mix improved in Q1 to 87.2% services and 12.8% products (from 80.1% and 19.9% in Q1 2005, respectively); and
Investments continue in Global Service Delivery, and the Company is currently undertaking major transition projects at a number of large international clients. This has put some pressure on the overall profitability of the group in this seasonally weak quarter.
Getronics' outlook statement was provided on 2 March 2006 and was repeated in the Annual Report 2005, published 5 April 2006.
* Unaudited results from continued operations.
** Growth on a comparable basis is derived by calculating organic growth at constant rates assuming Getronics and PinkRoccade were combined as of 1 January 2005, instead of 14 March 2005.
With some 25,000 employees in 30 countries and approximate revenues of €2.6 billion, Getronics is one of the world's leading providers of vendor independent Information and Communication Technology (ICT) solutions and services.
Getronics designs, builds, deploys and manages flexible and innovative end-to-end solutions, working together with our partners and clients, in order to optimise and increase the productivity of our clients' mobile knowledge workers.
Getronics headquarters are in Amsterdam, with regional offices in Boston, Madrid and Singapore. Getronics' shares are traded on Euronext Amsterdam ('GTN'). For further information about Getronics, visit www.getronics.com.