The integration of former Société Générale
subsidiary ECS has led to a drop in net profit at French IT and
telecoms funder Econocom.
Profit fell 25% in 2011 to €21.5m from the
2010 total of €28.8m, however, recurring operating profit, before
amortisation of the ECS customer portfolio at €2m per year, was up
40% to €66.6m
The integration of ECS, which Econocom
acquired in late 2010, resulted in €14.9m of one-off operating
costs, according to a statement from the company.
The firm also paid off the bank loan which
facilitated the acquisition early, at a cost of €6.1m, which leaves
Econocom with zero net financial debt as of 31 December 2011.
The technology funder did enjoy record
revenues in 2011, up to €1.58bn from €1.02bn in 2010. On a
like-for-like basis, given the 2010 figures take into account three
months of ECS’ activity compared with 12 months in 2011, growth was
The results exceeded Econocom’s targets for
the year which aimed for €1bn revenue and €60m recurring
For 2012, Econocom has targeted a slight rise
in revenue, recurring operating profit of over €70 million, and net
profit per share around €2. In its statement, the firm’s management
said it is in an ideal position to continue its profitable combined