Softline boosts turnover 18% to $950 mln in FY 2013
MOSCOW. May 26 (Interfax) - Russia's Softline group, a supplier of IT solution, saw turnover grow 18% year-on-year in the 2013 financial year ending March 31, 2014 to $950 million, Softline CEO Ruslan Belousov said.
"The company earned most of this money in Russia, which accounted for 82% of the company's turnover. Another 12% of company turnover was from CIS countries, and the remaining portion - from international business," he said. The company currently operates in 27 countries.
Softline has four main areas of business: software (licensing and supplying software), service (various IT services, including systems integration), could (providing cloud services and creating clouds for customers) and hardware (supplying hardware solutions).
Belousov said the fastest growing business for the company last year was cloud services. Revenue from this division grew nearly 100% to $12.4 million from $6.4 million. "Customers began going from initial experiments and pilot projects to high-grade industrial cloud use. The first to stat using cloud services is retail and medium-sized commercial companies," he said.
Softline's turnover from hardware grew nearly 100% as well to $7 million from $3.5 million. Belousov said the company had actually only begun developing this area of business in 2012. Hardware solutions include mostly supplies of servers and database systems as part of Softline's projects.
Turnover from services grew to $33.2 million from $28.2 million last year. Belousov said that this division accounts for 25% of overall margin, while the share of the company's service business in overall turnover is not yet large.
The company is planning to boost the group's overall revenue to $1.2 billion this financial year. It is expecting revenue from cloud services to show triple digit growth to $37.2 million, from services - double digit to $59.7 million, and hardware - double digit to $14 million.
Softline is also expecting to double its business in non-CIS countries (Latin America and Southeast Asian countries) to $91.6 million from $45.8 million in FY 2013.
Softline is planning for yearly growth of 30%-40% before 2020. Belousov said the company's strategic goals for this period included reaching turnover of $2-3 billion, and earnings before taxes, depreciation, and amortization (EBITDA) of $100-200 million. It is also assumed that the Russian market will account for around 50% of turnover. Softline expects for 50% of earnings to come from services, and the other 50% from software and equipment sales.
