ISG Gears Up Following Good Growth in 2016
Research and consulting firm Information Services Group has announced results for Q4 2016 and for the full year. At constant currency, full year revenues rose 4% to $216.5m, while the profit measure adjusted EBITDA fell 12% to $19.9m.
Fourth quarter revenue was $54.3m, up 1% at constant currency, while adjusted EBITDA was $2.9m, a sharp drop from $6.5m a year earlier. Both declines were blamed on softness in the UK market, and overall Q4 revenue grew rapidly in the Americas (up 20% to $29.7m), while falling 3% to $6.3m in Asia Pacific but more sharply, by 18% to $18.3m in Europe.
For the full year, revenues were up 7% (constant currency) to $116.6m in the Americas and up 9% to $24.8m in Asia Pacific, but down 2 percent to $75.1m in Europe.
ISG was founded in 2007 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, it announced it was spending $74m to acquire US-based Alsbridge Holdings, which like TPI is an outsourcing advisory firm.
Chairman and CEO Connors says of the latest figures: 'As we start 2017, we are well-positioned for a step-change in financial performance as a result of our recent acquisition and the significant work done in the fourth quarter to prepare our firm for a breakout year. Our full integration of Alsbridge is progressing ahead of plan, and we are on track to achieve at least $7m in synergy savings over 18 months... We are confident about our growth prospects for the full year, including the first quarter, as our pipeline continues to build, cost synergies are being achieved, cross-selling opportunities are beginning to emerge over our expanded client base, and demand for our digital and automation services continues to grow'.
Web site: www.isg-one.com .