IT services vendor Sopra SA said it is on course to become one of Europe’s 10 largest services companies after reporting strong growth in revenue and profitability in the first half.
In the six months to June 30, 2004, Paris, France-based Sopra increased net profit 121.4% to 6.2m euros ($7.6m) on revenue that grew 14.7% to 299.4m euros ($366m).
Sopra chairman Pierre Pasquier said organic revenue growth was 9% during the first half, which he said outstrips the organic growth rates at all other leading European IT services companies. Sopra has recently increased the size of its domestic operation through the acquisition of systems integrators Inforsud Ingeierie and Valoris, but it has some way to go to become a top 10 player.
Sopra made full-year 2003 revenue of 525.3m euros ($643m), which placed it in 18th position in ComputerWire’s rankings of Europe’s largest IT services companies. The 10th largest player, Telecom Italia subsidiary Finsiel SpA, made full-year sales of $1bn, which means that Sopra will almost have to double in size to achieve its goal.
In the first half of 2004, Sopra made 70.9% of its revenue from its domestic systems integration business. Higher-margin consulting services accounted for only 5.8% of sales, with its European integration business representing 12.1%. The remaining 11.2% came from its middleware unit Axway, which suffered a drop in sales during the first half.