“In the first nine months of 2020, despite some effects, there were no relevant Covid-19 effects,” guaranteed Novabase, which published a “trade update”.
However, the company says it remains “cautious” considering that “the next few months are still of great uncertainty due to new waves of the pandemic, the duration and amplitude of which are still difficult to predict,” the document said .
Novabase also said that international business was up 13% compared to the same period last year and that 62% of the next-gen business is overseas.
In this segment, sales rose 11% to 67 million euros, announced the group, which did not disclose the net results for this period.
Novabase was able to increase its net cash flow to 49.4 million euros, due to several deals that were made in the first nine months of the year and generated 15.2 million euros in cash.
The group was able to earn 35.4 million euros from the sale of the GTE business, received 1.4 million euros for the sale of Collab and paid 20 million euros for the acquisition of Vodagone’s stake in Celfocus.
The company also reported a talent pool of 1,739 employees over the same period, a 2% reduction from 2019, “in line with management reorganization and anticipated synergies,” the same release said.
The group pointed out that its securities rose 31% in the first nine months of this year and reached 3.37 euros on the last trading day of this period.
Novabase also recalled that given the current context, it has decided to reverse its original intention of proposing a dividend of EUR 0.85 per share to shareholders.
Novabase President João Nuno Bento, quoted in the same document, warned of further negative signs in the future, namely “a negative feeling during the budgeting process for 2021” that could lead the group’s customers to “cut investments”.
In addition, Novabase expects M&A activities (mergers and acquisitions) to be delayed.
“We remain optimistic in the medium term. In fact, recent studies suggest that compound interest digital investments will grow by over 15% by 2023, ”concluded the manager.