AKKA Technologies: Q3 2019 Revenue: +26% At € 441M

PARIS--()--Regulatory News:

AKKA Technologies (Paris:AKA):

Q3 2019 PRFORMANCE

 

  • Consolidated revenue on 9 months: +25.5% to €1.3Bn
  • Sustained activity in France
  • Growth in Germany in line with expectations: +2.4%
  • Solid momentum in North America: +17% at €78m
  • 2019 targets confirmed

 

2019 THIRD QUARTER REVENUE

(€ million)

Q3 2019

Q3 2018

Change

Change

Pro-forma

Group

441.1

349.8

+26.1%

+7.4%

France

163.3

152.6

+7.0%

+7.0%

Germany

123.5

120.6

+2.4%

+2.4%

North America*

78.4

6.1

+1,186.6%

+16.8%

International**

75.9

70.4

+7.8%

+7.8%

* PDS Tech has been consolidated since 1 November 2018
** Excluding Germany and North America

  • The Group’s revenue increased by 26.1% in the third quarter of 2019 and by 25.5% YTD, in a contrasted macroeconomic environment. This dynamic is driven by strong growth in France, International and North America while Germany continues to improve.
  • Mobility, AKKA’s main sector, remains buoyant, with 28% revenue increase YTD.
  • AKKA owes its resilience to its expertise in cutting edge digital technologies. The Group delivered a strong performance in communications related to smart infrastructure, connectivity and CASE1 related technologies.
  • At the end of September 2019, AKKA’s activity pipeline is robust with several new contracts scheduled to start in Q1 2020. Digital disruption and transformation in the mobility sector offer opportunities in an environment still clouded by international politics and cultural adjustments of large OEMs.

PRO-FORMA REVENUE GROWTH OF 7.4% IN THE THIRD QUARTER OF 2019

  • Displaying a positive momentum, the French BU delivered a 7% increase in revenue for Q3 and 7.7% growth YTD. Performance was impacted by slow recruitment levels in the first quarter of 2019. However, France has accelerated its recruitment activity since May in order to fuel future growth.
  • German BU delivered a 2.4% revenue growth in Q3. This was driven by solid traction in the Automotive sector thanks to contracts with Volkswagen and improved revenue streams with Daimler. The resilience of the group in Germany, and for the Group overall, is the result of AKKA’s unique positioning and its capacity to accompany its clients in the automotive industry in their transformation toward digital and technologies in high demand for future products and services.
  • 7.8% revenue increase in the International BU in Q3 2019 was mainly driven by growth in Belgium, Italy and Spain thanks to numerous commercial successes as a direct result of the Strategic Customers Department launched earlier this year.
  • AKKA North America confirms its successful growth. Pro-forma revenue (including PDS Tech) increased by 16.8% and AKKA legacy activities grew by 59.9% in Q3 2019 despite a more demanding comparison basis. YTD performance was 22.7% and 82.5%, respectively.
  • As of September 30th, 2019, AKKA had 20,901 employees, an increase of 21.9% in comparison with the third quarter of 2018, including 7,717 talents in France, 5,068 in Germany, 4,041 in North America and 3,969 internationally.

ALL OBJECTIVES FOR 2019 and 2022 CONFIRMED

The Group remains confident in its business outlook despite a contrasted economic environment. This confidence is supported by its ability to benefit from continued investments in high-demand digital technologies aligned with its strategic positioning.

2019 OUTLOOK

 

  • Organic growth: ≥ 6%
  • Operating margin from ordinary operations: ≥ 8%
  • Free cash flow: ≥ 5%

 

2022 OUTLOOK

 

  • Revenue of €2.5 billion
  • €250 million in operating profit from ordinary activities6
  • €150 million in free cash flow

 

LISING AT EURONEXT BRUSSELS

AKKA is in the process of listing on Euronext Brussels, as part of its long-term commitment to its Belgium stakeholders.

The listing is expected to be finalized by the end of this month. The company will not issue any new shares and its primary listing will remain with Euronext Paris. This listing is expected to diversify and enlarge its shareholder base, and therefore enhance the global liquidity of its shares.

Next event:

Full-year 2019 revenue: Thursday, 6 February 2020

Full-year 2019 results: Tuesday, 17 March 2020

In case of discrepancies between the French and English versions of the press release, only the English version shall be deemed valid.

About AKKA

AKKA is the European leader in engineering consulting and R&D services in the mobility segment. As an innovation accelerator for its clients, AKKA supports leading industry players in the automotive, aerospace, rail and life sciences sectors throughout the life cycle of their products with cutting edge digital technologies (AI, ADAS, IoT, Big Data, robotics, embedded computing, machine learning, etc.).

Founded in 1984, AKKA has a strong entrepreneurial culture and is pursuing its fast-paced growth and international development in line with its CLEAR 2022 strategic plan. With approximately 21,000 employees, who are passionate about technology and dedicated to advancing the future of industry, the Group recorded revenues of €1.5 billion in 2018.

AKKA Technologies is listed on Euronext Paris – Segment A – ISIN code: FR0004180537.

For more information, please visit www.akka-technologies.com

Follow us on: twitter.com/AKKA_Tech

APPENDIX:

REVENUE BY QUARTER

Revenue

(€ million)

Q1 2019

Q2 2019

Q3 2019

2019 YTD

France

169.1

161.7

163.3

494.1

% change

5.4%

11.0%

7.0%

7.7%

Organic growth2

5.4%

11.0%

7.0%

7.7%

Economic growth3

7.1%

11.0%

5.4%

7.7%

 

 

 

 

 

Germany

126.2

129.2

123.5

378.9

% change

6.4%

-3.1%

2.4%

1.7%

Organic growth2

6.4%

-3.1%

2.4%

1.7%

Economic growth3

6.4%

-1.6%

1.0%

1.7%

 

 

 

 

 

North America

75.6

76.8

78.4

230.8

% change

1,433.1%

1,392.7%

1,186.6%

1,327.4%

Organic growth2

35.9%

60.1%

35.1%

43.3%

Economic growth3

35.7%

60.3%

34.8%

43.2%

 

 

 

 

 

International

75.4

77.4

75.9

228.7

% change

7.7%

4.9%

7.8%

6.7%

Organic growth2

7.3%

4.4%

6.9%

6.2%

Economic growth3

7.3%

4.4%

4.4%

5.3%

 

 

 

 

 

Total Group

446.3

445.2

441.1

1,332.5

% change

26.1%

24.4%

26.1%

25.5%

Organic growth2

6.6%

5.1%

5.9%

5.9%

Economic growth3

7.3%

4.8%

5.0%

5.7%

1 Connected, Autonomous, Shared, Electric
2 Growth at constant scope and exchange rates
3 Growth at constant scope, exchange rates and number of working days

Contacts

AKKA Contacts
Investor Relations
Dov Levy
VP Investor Relations
Tel: +32(0) 2 712 61 24
dov.levy@akka.eu

Media Relations
Markus Leutert
Group Head of Communications
Tel.: +32(0) 4 96 26 27 55
markus.leutert@akka.eu

FTI Consulting
akka@fticonsulting.com
Media Relations, France
Emily Oliver
Tel.: +33(0) 1 47 03 68 65

Contacts

AKKA Contacts
Investor Relations
Dov Levy
VP Investor Relations
Tel: +32(0) 2 712 61 24
dov.levy@akka.eu

Media Relations
Markus Leutert
Group Head of Communications
Tel.: +32(0) 4 96 26 27 55
markus.leutert@akka.eu

FTI Consulting
akka@fticonsulting.com
Media Relations, France
Emily Oliver
Tel.: +33(0) 1 47 03 68 65