, November 8, 2012

Ordina N.V. third-quarter results

Ordina on track, sees further increase in result in 3rd quarter

Key developments:

  • Recurring EBITDA up EUR 0.8 million to EUR 2.7 million (Q3 2011: EUR 1.9 million);
  • Recurring revenue down 4.5% to EUR 95.3 million (Q3 2011: EUR 99.8 million);
  • Recurring EBITDA margin increases to 2.8% (Q3 2011: 1.9%);
  • Net debt / recurring EBITDA ratio at 1.3, well within the agreed covenants (≤ 2.5);
  • Rising Star in Best Employer 2012 survey rankings;
  • New contracts from Equens, Stichting Dichterbij, Dutch National Archives and the Education Inspectorate.

Stépan Breedveld, CEO Ordina on the results

“The improvement in our profitability continued in the third quarter, a period which is usually quieter and includes a lot of holiday time. The cost measures we introduced in mid-2011 are clearly having a structural impact. And the productivity in the third quarter has stabilised at a higher level than we saw in the same period of 2011. In Belgium, where we faced lagging results in the first half of the year, we have taken measures to bring cost levels in line with market conditions.

Following a successful launch in the field of Mobile, we have continued our investments in proposition development in some seven innovation themes, this time in the field of Security. We are also very proud of the improvement in employee engagement at Ordina. It made us the Rising Star in the 2012 Best Employer survey among companies with more than 1,000 employees.”


The economic outlook and the developments in the markets in which Ordina operates remain uncertain. This applies to both the Netherlands and Belgium. This means it is difficult to predict revenue development and thus profit. Barring changes in market conditions, we expect the development of results to remain unchanged in the fourth quarter.


Revenue per market (in EUR million)

Q3 2011 Q3 2012 Difference
Public / Healthcare 38,4 39,1 1,8%
Financial services 32,2 29,9 -7,1%
Industry 29,2 26,3 -9,9%
Total 99,8 95,3 -4,5%

Revenue per division (in EUR million)

Q3 2011 Q3 2012 Difference
Professional Services & Projects 70,2 67,3 -4,1%
Business Solutions 7,6 6,8 -10,5%
Consulting 10,0 8,3 -17,0%
Belgium/Luxembourg 17,8 17,0 -4,5%
Intra-company services -5,8 -4,1 -29,3%
Total 99,8 95,3 -4,5%

Companies and (semi) government institutions remain cautious when it comes to starting major projects. However, even in this uncertain market, Ordina has been able to demonstrate its added value to customers. This is also clear from the various new projects agreed in the third quarter, such Stichting Dichterbij’s outsourcing of its entire ICT infrastructure to Ordina and InterAccess. Dichterbij specifically opted for Ordina as an innovation partner in this project. The Dutch National Archives and the Education Inspectorate selected Ordina as ICT partner for application development and management. For Equens, Ordina now provides maintenance and management of Oracle EBS, Hyperion and Business Intelligence.


The programme for proposition development based on a number of innovation themes is progressing on schedule. The successfully launched Mobile unit has been anchored in the Professional Services & Projects division.

The demand for mobile services has translated into various concrete contracts. For instance, we are providing electronics firm Philips with various mobile solutions, such as Philips Vital Signs. This camera app allows people to measure their breathing and heartbeat based on the changes to colouration of their faces. At Philips’ request, Ordina has expanded the app, adding the option to store the history of the test data and read the data in the form of a graph. Ordina also provides Philips with lifecycle management of its apps.

We are also working on innovative propositions on the cutting edge of the themes mobile, security and big data. For instance, at the request of the De Volkskrant daily national newspaper, we documented all Facebook messages relating to Project X in Haren. This information was used to create a detailed reconstruction of the run-up to the riots in the village in the northern province of Groningen. The justice department and police have since shown an interest in these services.


The number of employees at the end of the third quarter stood at 2,904 FTEs. This is a reduction of 200 compared with the end of the third quarter of 2011. When compared to the second quarter of 2012, there was a slight drop of 32 FTEs.

Financial position

The net debt position at the end of the third quarter of 2012 was EUR 21.9 million, down from EUR 56.4 million at the end of the third quarter of 2011. There was a slight increase when compared to the EUR 20.4 million balance at the end of the second quarter of 2012. This increase was largely due to the negative change to the working capital.

Total net debt / adjusted EBITDA stood at 1.3 (covenant: ≤ 2.5) and the Interest Coverage Ratio was 10.7 (covenant: ≥ 3.5). The ratios stayed well within the agreed bank covenants.