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Introduction & Market Context
Econocom Group SA (EBR:ECONB) presented its H1 2025 results on July 24, 2025, revealing accelerated revenue growth of 6.6% compared to the same period last year. The company’s stock closed at €1.90, down 2.26% on the day of the presentation, suggesting investors may have concerns despite the positive narrative.
The IT services and digital transformation company reported total revenue of €1,421 million for the first half of 2025, up from €1,334 million in H1 2024. Operating margin increased by 8.7% to €41.4 million, maintaining a profitability rate of 2.9% despite competitive pressures and continued investments in salesforce expansion.
H1 2025 Financial Performance
Econocom’s growth trajectory has accelerated compared to the 3.6% revenue increase reported for full-year 2024. The company highlighted that organic growth contributed 5.9% of the total 6.6% revenue increase, demonstrating strong core business performance.
As shown in the following chart of the company’s overall financial performance:
While operating profit increased to €35.0 million (up from €32.5 million in H1 2024), net profit plummeted to just €0.8 million compared to €23.0 million in the prior year period. This dramatic decline was primarily attributed to losses and impairment related to Synertrade, a subsidiary classified under discontinued operations.
The detailed income statement reveals the significant impact of the Synertrade situation:
Philippe Renauld, Managing Director of Finance and M&A, explained that Synertrade, a provider of e-procurement software, required a €10 million goodwill write-off as of June 2025, following net losses of €7.3 million in 2024 and €6.8 million in H1 2025.
Segment Analysis
Econocom’s performance varied significantly across its three business segments, with Technology Management & Financing (TMF) delivering exceptional results while Products & Solutions faced challenges.
The TMF segment, which focuses on strategic assets financing, posted an impressive 18.4% revenue increase to €599 million, with operating margin surging to €25.3 million from €14.6 million a year earlier:
In contrast, the Products & Solutions segment experienced a 2.4% revenue decline to €575 million, with operating margin dropping sharply to €5.8 million from €14.2 million in H1 2024:
Management attributed this underperformance to "a difficult market, notably in France due to reduced public spending," along with "market pressure, contract renewals and lower operational leverage."
Meanwhile, the Services segment delivered modest growth of 3.6%, reaching €248 million in revenue with improved profitability:
Strategic Initiatives and Acquisitions
A key highlight of Econocom’s presentation was its strengthened position as Europe’s leading audiovisual integrator. Through four strategic acquisitions, the company has expanded its European footprint and added approximately €60 million in annual revenue and 260 professionals to its workforce.
The following map illustrates Econocom’s audiovisual integration acquisitions across Europe:
Angel Benguigui, Chief Executive Officer, emphasized the company’s transformation efforts: "We are transforming the Group for better efficiency while accelerating growth through both organic initiatives and strategic acquisitions."
The company is implementing several growth drivers, including its "Agent Model" with entrepreneurial independents contributing about one-third of group revenues, and a "Cross-Sell Model" that has delivered 23% growth on a €30 million client base in Spain.
Balance Sheet and Debt Management
Despite reporting that net financial debt remains "under control," Econocom’s debt increased to €208 million as of June 30, 2025, up from €180 million a year earlier and significantly higher than the €90 million reported at the end of 2024.
The company’s debt waterfall chart shows the various factors affecting the debt position:
To strengthen its financial position, Econocom successfully issued a €225 million Schuldschein (German debt instrument) in April 2025:
The company emphasized that this issuance provides "increased liquidity supporting the execution of the Group’s strategic plan" and was secured on favorable terms despite a volatile market environment.
ESG Achievements and Outlook
Econocom highlighted its sustainability credentials, including an improved EcoVadis rating placing it in the top 5% of companies:
Looking ahead, management expects H2 2025 revenue growth to remain in line with H1 levels, continuing the acceleration trend compared to 2024. The company plans to maintain its transformation efforts through salesforce expansion, improved tooling, and a new incentive plan.
Angel Benguigui concluded: "We are seeing the benefits of our balanced portfolio of activities and geographies, along with focused deal execution and integration. Our transformation journey continues as we strengthen our position across key European markets."
Full presentation:
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