Dutch ICT Services Industry Under reconstruction in 2001

The Dutch ICT Services industry grows about 6% in 2001, after a 3.8% growth in 2000. Shortage on the ICT labor market vanished. Profitability trends downward. The market value of ICT services companies decreased 25% in first quarter of 2001.French capital acquired a strong base in the Netherlands . These some of the findings of a new Survey of the Dutch ICT Services Industry by AME Research B.V. (www.ame.nl)

Internationalization of ICT services continues. PinkRoccade and Ordina are the most attractive stock picks. PinkRoccade is a merger candidate. CMG's mobile division trims profitability. Getronics dwells between profit and loss. CGEY is jewel in the crown.

The Dutch ICT Services industry faces an intensive reconstruction. French competitors invade the Dutch market. They control already 38% of the Top 5 revenues. Many smaller companies created chaos. Not less than eleven companies are in serious trouble. Customers seek more and more the well-established services brands.

21 listed ICT services companies are reviewed. Five market leaders capture 33% of total Dutch IT-services revenue. Dutch revenues of 10 leading listed ICT services companies increased in 2000 with 3.8% to € 4.9 billion. Total revenue of the Dutch IT market is estimated at € 11.3 billion. The companies under review represent 44% of total Dutch revenue. Their combined total worldwide revenue in 2000 was € 11.7 billion, an increase of 12.6%, partly realized through mergers and acquisitions. They employ over 95,000 people.

The Survey content:

• Contains in depth analyses of revenue developments, employment and profitability.
• Discusses market developments, consolidation trends, merger and acquisition trends, and international and Dutch revenue trends.
• Focuses on ICT and Internet labor market trends
• Provides insight in the market capitalization and market value of the Dutch companies based on price to sales ratios and price earnings ratios and is as such an excellent instrument for valuation and investment decisions.
• Provides information on revenue per employee
• Gives stock prices of the first quarter 2001
• Delivers information on cash flow figures and earnings before taxes developments and tax rates in the Netherlands.
• Provides information of revenues per service line, market sector and geography.
• Summarizes growth strategies of companies

New Highlights

• Cap Gemini N.V. entirely in French control
• French Transiciel acquires UCC Holding expensive
• Atos Origin dreams of bidding on BT's Syntegra
• PinkRoccade wants data center of KPN Telecom
• Revenue in 2001 increases 6%-10%
• Revenue per employee decreased in 2000
• Solvency decreased from 35.3% in 1999 to 31.5% in 2000
• Average market value 1.3 times revenues
• Price earnings ratio's differ largely
• Table 1: Revenue by company
• Table 2: Revenue per employee by company
• Table 3: Solvency by company in 1999 and 2000
• Table 4: Market value and price to sales ratio per company
• Table 5: Earnings per share and price earnings ratio per company
• Table 6: Revenue Top 5 by service line, market sector and geography
• Table 7: Employment in the Dutch ICT Services industry
• Analysis: Magnus
• Analysis: Newconomy
• Analysis: Blue Fox
• Analysis: C/TAC-Align
• Analysis: KSI International
• Survey Dutch ICT Services Part I
• Analysis CGEY
• Analysis CMG
• Analysis Getronics
• Analysis Tulip Computers

Players in the market

The Dutch market for ICT services is fragmented with many players. In order to achieve a better insight we divide the suppliers in the following groups.

• Top 5 original ICT suppliers: Getronics, Atos Origin, Cap Gemini Ernst & Young, CMG and PinkRoccade
• The midmarket players with Ordina, Triple P, Simac, Centric, ICT, LCI, CSS, UCC and Aino
• The third layer with KSI, Magnus, Vertis, Devote, Jansen MI Consultants, C/TAC and others
• The management consultants from the accountancy world: Arthur Andersen, KPMG, PriceWaterhouseCoopers, Berenschot, Twijnstra and others.
• Foreign players such as Logica, Sema, IBM, CSC, EDS.

This report, part 1, concentrates on the Top 5 listed Dutch suppliers and the next 5 listed midmarket companies. Part 2, available now concentrates on the other midmarket players. Part 2 is an integral part of the offering. The information is derived from annual reports, other publications and discussion with company management.

Researched companies by revenue in 1999, 2000 and 2001

In euro 1000 

Other Tables

1. Total revenue 1999, 2000, 2001
2. Total number of employees at yearend
3. Earnings before taxes margin 1998, 1999, 2000
4. Market capitalization
5. Revenue in The Netherlands 1999,2000,2001
6. Employees in the Netherlands 1999,2000, 2001
7. Revenue per employee in euro 1999,2000,2001
8. Stock prices 20 AEX listed ICT Services companies
9. Price earnings ratios 2000, 2001
10. Cash flow as percentage of revenue 1998,1999,2000
11. Revenue information by service line
12. Revenue by market sector
13. Geographical revenue information
14. Tax rates 1998, 1999, 2000 eleven listed companies

 How to order:

First find www.persberichten.com. Then click the Survey banner on top. Fax this form to: +31 522 24 16 55. Or send it by e-mail to ame@wxs.nl

Price: € 542 ex Vat, including a full year subscription on ICT business review High Tech Analysis and free access to the AME Research Knowledge Center Online at www.ame.nl/knowledge-center

For more info contact:

Director Adriaan Meij (ame@wxs.nl)

Telephone: + 31 (0) 522 256470 or Mobile: 06 53529859

http://www.ame.nl

About AME Research BV

AME Research BV, the European financial ICT research company, is specialized in analyzing and communicating high level business Information concerning the Information- and Communication Technology (ICT) industry for managers of ICT companies and the financial and investment world.

Zuideinde 56; 7941 GJ Meppel; Telephone 0522 256470; Fax 0522 241655; E-mail: ame@wxs.nl; Web: http://www.ame.nl