In a deteriorated economic context, Econocom showed good resilience and posted revenue at the end of September 2023 of 1,926 million euros, up1 0.9% (down 2.0% on an organic basis2) driven by the Services business but impacted by a declining market for Products & Solutions.
The following developments were achieved during the first nine months of 2023:
- Products & Solutions (P&S) revenue amounted to €862 million, representing limited growth1 of 0.1%. Business continued to benefit from the successful integration of SEMIC in Spain and LYDIS in the Netherlands, but posted an organic2 decline of 5.1% after strong growth during the equivalent period in 2022. Indeed, the current market environment, marked in particular by persistent component price inflation and a steady rise in interest rates, is less favourable than last year, causing companies to postpone their investment decisions. Nevertheless, Econocom held up better than the rest of its benchmark3, mainly due to its cross-divisional combined offerings.
- Technology Management & Financing (TMF) revenue edged up1 0.3% to €689 million (down 1.0% on an organic basis2). Since the beginning of the year, TMF has managed to match the level of almost all of the major revenue-generating contracts recorded in H1 2022. Econocom expects to return to stronger growth in the fourth quarter, traditionally a high seasonal peak.
- In line with the second quarter, Services maintained a positive growth trajectory (total1 and organic2), up 3.9% to €374 million driven by buoyancy on markets outside France.
End-of-year outlook
Given the level of growth at the end of September, the Group estimates that its 2023 revenue growth will be positive but below the 5% target, despite an expected fourth quarter increase in revenue compared to 2022.
Thanks to an active policy of preserving margins and optimizing overheads, the Group nevertheless expects net income in 2023 to be of the same order of magnitude as in 2022.
2024-2028 Strategic Plan
Econocom will present its strategic plan to the financial community on 16 November in Brussels during a dedicated Capital Markets Day.
Next publication: annual revenue 2023
Econocom will post its 2024 financial information publication schedule on the company website by the end of the year.
1 At constant standards
2 At constant standards and scope
3 The B2B IT distribution market has declined 15% on average according to several benchmark studies.