All economic indicators have improved(*):

- Consolidated turnover of EUR573.7 million (498.1 in the first half of 2018);

- EBITDA of EUR85.7 million (68.3 in the first half of 2018);

- EBIT of EUR67.6 million (62.1 in the first half of 2018);

- Pre-tax profit of EUR70.2 million (64.2 in the first half of 2018).

 

Today, the Board of Directors of Reply S.p.A. [MTA, STAR: REY] approved the results as at 30 June 2019.

Since the start of the year, the Group has recorded a consolidated turnover of EUR573.7 million, which is an increase of 15.2% compared to the same period in 2018.

All indicators are positive for the period. In the first half of 2019, consolidated EBITDA was EUR85.7 million, compared to the EUR68.3 million recorded in 2018, and corresponds to 14.9% of turnover. Consolidated EBITDA excluding the effects of the application of IFRS 16 would have been EUR73.6 million.

EBIT from January to June was EUR67.6 million (EUR62.1 million in 2018), corresponding to 11.8% of turnover. EBIT excluding the effects of the application of IFRS 16 would have been EUR67.0 million.

Pre-tax profit from January to June 2019 was EUR70.2 million (EUR64.2 million in 2018), corresponding to 12.2% of turnover. The value excluding the effects of the application of IFRS 16 would have been equal to EUR70.7 million.

For the second quarter of the year, the Group's performance is equally positive, with consolidated turnover for the period of EUR290.1 million, which is an increase of 11.9% compared to 2018.

EBITDA from April to June 2019 was equal to EUR43.3 million (excluding the effects of the application of IFRS 16, this would have been equal to EUR37.1 million), with an EBIT of EUR34.0 million (excluding the effects of the application of IFRS 16, this would have been equal to EUR33.7 million) and pre-tax profit of EUR36.0 million (excluding the effects of the application of IFRS 16, this would have been equal to EUR36.3 million).

As at 30 June 2019, the Group's net financial position is positive at EUR18.3 million (EUR101.1 million excluding the effects of the application of IFRS 16). The net financial position as at 31 March 2019 was positive at EUR50.0 million (EUR134.3 million excluding the effects of the application of IFRS 16).

"In 2019 Reply achieved very positive results, both in terms of turnover and margins." said Reply Chairman Mario Rizzante following the Board of Directors meeting. "The first six months of the year have been marked by a huge number of projects focused on our core offering: cloud, IoT and connected products, data platforms and digital experience."

Mario Rizzante continued "Over the course of those months, we saw a strong drive from new applications linked to the use of artificial intelligence and automation using robotics, specifically applied to both to autonomous cars and business processes."

"The current world is now firmly modelled on a combination of artificial intelligence, cloud platforms and network connectivity," Mario Rizzante added. "This new digital foundation represents the starting point from which further changes in technology and organisations, such as blockchain or 5G, will be introduced. New opportunities will open for emerging markets and unexplored business models, for which the capacity to understand and better exploit the technology as well as to integrate it with human components will be the key to success."

(*) Reply has applied the new international accounting standard IFRS 16 prospectively from 1 January 2019, which has had an effect on the value of EBITDA (+EUR12.1 million) and on the net financial position (-EUR82.8 million).

The manager responsible for preparing the company's financial reports, Dr Giuseppe Veneziano, states in accordance with Paragraph 2 of Article 154-bis of the Consolidated Finance Act, that the accounting information contained in this press release corresponds to the company's records, ledgers and accounting entries.

Reply
Reply [MTA, STAR: REY] specialises in the design and implementation of solutions based on new communication channels and digital media. As a network of highly specialised companies, Reply defines and develops business models enabled by the new paradigms of big data, cloud computing, digital media and the internet of things. Reply delivers consulting, system integration and digital services to organisations across the telecom and media; industry and services; banking and insurance; and public sectors.

 

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August 1, 2019

This press release is a translation, the Italian version will prevail.