Highlights of the First Half:
- Network Services Direct Revenues Grew by 9 percent; total revenues were stable.
- Operating Income before Depreciation, Amortization and Non-Recurring Charges Doubled to $159 Million.
- 31 percent reduction in net loss.
AMSTERDAM, Netherlands (Sept. 18, 2003) – Equant (NYSE: ENT) (Euronext Paris: EQU) today announced financial results for the first half of the 2003 financial year.
Revenues
The company’s revenues for the first half of 2003 were, as anticipated, essentially flat compared with the first half 2002; growth in Network Services and Integration Services was offset by declines in other lines of business.
Network Services’ revenues increased by 3.5 percent to $811 million in the first half of 2003. Revenues from the multinational customer base serviced by the direct sales force increased 9 percent, with growth in the Central and Eastern Europe region, which more than offset declines in Latin and North America. The increase from direct sales more than offset a 15.9 percent decrease from the indirect sales channels. Revenues from Network Services’ indirect channels have stabilized in the first six months of the 2003 financial year.
In the first half, the company continued to see good demand for its flagship IP VPN product, and announced multimillion dollar contracts with APL, Electrolux, Hanjin Shipping, JT International, Kuehne and Nagel, the Swedish Ministry of Foreign Affairs and Sea Containers in conjunction with China Netcom.
In the first half of 2003, the company introduced Broadband DSL Access and Secure Corporate Access to the public Internet to its portfolio of IP VPN services.
Integration Services’ revenues increased by 4.5 percent to $219 million this half with both fulfillment and hosting and applications showing good growth compared with the first half of 2002. The weak economy in the United States has had a significant impact on the demand for small enterprise contracted computer maintenance leading to a decline in services revenues. The company strengthened its Managed Messaging Portfolio with the addition of a Remote On-Site option.
Other Services revenues in the first half were $109 million, a decrease of 9.3 percent from the 2002 half year. The decrease reflects a change in the product management agreements with France Telecom Transpac, together with the expected fall in revenues from circuit-switched voice services. During the period, the company introduced two further additions to its products set: GPRS access and Equant video over IP.
Revenues from the SITA contract were $341 million in the first half of 2003 declining from $362 million in the 2002 first half, reflecting the lower minimum revenue commitment, effective from July 2002. From July 2003, there will be no minimum revenue commitment as new contractual arrangements with SITA come into force.
The full press release and financial figures, can be found here.