ISG Continues Growth on Back of Outsourcing Buy
US-based Information Services Group has announced results for the third quarter of 2017. Revenue rose 30 percent at constant currency to $68.3m, in part due to the acquisition of Alsbridge Holdings in December.
Americas revenue rose fastest, up 42% to $41.5m, while European and Asia Pacific revenue grew slower, up 15% to $19.7m and 12% to $7.1m respectively. Operating income rose by c. one third from $2.6m to $3.5m, EPS from $0.02 per share to $0.03, and adjusted EBITDA was up 46% to $9.6m - the last very similar to results from the first two quarters of 2017.
Chairman and CEO Michael P. Connors (pictured) described the results as 'another strong quarter, highlighted by record-setting revenues and adjusted EBITDA', adding 'Client demand continues to grow for all things digital, and we're responding with continued investment in this area, especially in Robotic Process Automation (RPA) services'.
For 2017, the company has reaffirmed its forecast of revenue growth in the range 25-34 percent ($270-290m) and adjusted EBITDA growth of 60-75% ($32-35m) over the prior year.
Since its formation in 2007, ISG 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.
Founded in 2006, and based in Stamford, CT, ISG employs more than 1,300 professionals, ISG is online at www.isg-one.com .