Respectable Growth, Strong Profit for ISG

Information Services Group (ISG) has announced results for the second quarter and first half ended June 30th, 2018. Q2 revenue rose two percent at constant currency, to $71.0m, while the profit measure adjusted EBITDA rose 23% to $9.8m.

ISG said the US public sector market was soft and had held back further increases in overall revenue - nevertheless US revenue rose 2% (reported basis) to $40.8m, while in Europe it jumped 12% to $24.0m. Asia Pacific revenue declined 6.5% to $6.1m. Overall, fully diluted income per share of $0.05 replace a loss per share of $0.01 a year earlier.

First-half 2018 revenues of $139.9m were up 4% reported or just 1% at constant currency, while adjusted EBITDA was $15.7m, vs $15.0m in H1 2017. For the full year, the company reaffirmed its forecast revenue of between $35 and $37m.

Chairman and CEO Michael P. Connors (pictured) says the highest-ever revenue quarter and strong EBITDA margins were 'propelled by strong demand for all things digital'. He adds: 'Our revenue mix continues to grow in value, based, in part, on rising demand for our digital services, which represent more than 40 percent of our total revenues, and the high market valuations for automation services we are seeing of late'.

ISG was founded in 2006 as an acquisition vehicle by former Nielsen exec Michael P. Connors, and since then has acquired TPI, Compass, STA Consulting, and more recently emerging IT trends analyst Saugatuck Technology and subscription-based research, advisory and benchmarking firm Experton Group AG. In December 2016 it spent $74m to acquire US-based Alsbridge Holdings, which like TPI is an outsourcing advisory firm.

The company recently moved its headquarters across Stamford, CT; employs more than 1,300 professionals operating in more than twenty countries and is online at www.isg-one.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.