Second Quarter 2017

Strong growth in product revenue shows that IFS is executing well on its strategy

Second Quarter (April–June 2017)

  • License revenue amounted to SKr 216 million ('16: SKr 190 million), an increase of 11 percent in constant currency.
  • Maintenance revenue was SKr 354 million ('16: SKr 300 million), an improvement of 14 percent in constant currency.
  • Consulting revenue amounted to SKr 429 million ('16: SKr 420 million), a decrease of 1 percent in constant currency.
  • Net revenue totaled SKr 1,025 million (Q2 '16: SKr 923 million), an improvement of 8 percent in constant currency.

Year to Date (January–June 2017)

  • License revenue amounted to SKr 387 million ('16: SKr 292 million), an increase of 28 percent in constant currency.
  • Maintenance revenue was SKr 704 million ('16: SKr 596 million), an improvement of 15 percent in constant currency.
  • Consulting revenue amounted to SKr 858 million ('16: SKr 825 million), no change in constant currency.
  • Net revenue totaled SKr 1,994 million ('16: SKr 1,734 million), an improvement of 11 percent in constant currency.

Download: 2017 Q2 Presentation

Chief Executive Summary

IFS has seen record growth year to date which, being significantly higher than the growth in the market, indicates that we are continuing to increase our market share. Our recent acquisitions, including Mxi, continue to perform well and are proving to be excellent investments. Over recent years, we have continued to invest in service management as we see this as a logical extension to our established markets of manufacturing, asset management, and project-based industries. Our analyst rating for service management continues to ride high and we are pleased with the exciting new customers in this sector that we have welcomed to IFS already this year.

We are seeing great interest in our managed cloud service from both existing and new customers; and we expect to see this develop increasingly as a significant part of our business. There is also a rising interest today in Digital Transformation and especially in the Internet of Things (IoT), which is coming from all sectors of our diverse global customer community.

IFS is continuing in its scaled-up investment program to develop strategic growth drivers in the business. A good outlook for the full year is supported by the strong performance seen in the first two quarters.

Download: 2017 Q2 Presentation

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