One of Europe’s largest resellers and IT services outfits has just posted growth, albeit only thanks to the contribution of recent acquisitions.
Franco-Belgian giant Econocom saw revenues rise by 3.9% year-on-year to €1.337bn in the first six months of 2023.
The results were “in line with expectations in an economic context adversely affected by inflation, rising interest rates and a decline in the digital asset distribution market”, the Euronext Brussels-listed outfit said.
On an organic basis, revenues were actually down 0.4% as a decline in product sales dragged on its top line.
‘Digital general contractor’
Operating in 16 countries, Econocom expanded its UK presence in 2021 by acquiring Apple partner Trams.
It bills itself as “Europe’s first digital general contractor”, offering equipment, services and financing to large companies and public organisations.
Although Econocom’s product and solutions business grew 5.5% to €585m in the first half, that number was down 2.8% on an organic basis.
Financing-related revenues grew 2.8% to €498m, or 0.9% on an organic basis. Services revenues widened by 2.6% to €254m on a reported and organic basis, meanwhile.
Despite citing the “difficult economic conditions”, Econocom said it is maintaining its 2023 objectives of both a 5% revenue growth and an improvement in its consolidated net profit for 2023 as a whole.
Pattern of growth
Econocom’s results continue a pattern of growth among Europe’s top IT solutions providers.
Nordic giant Atea saw revenues rise 17% YoY in Q2 to NOK8.87bn (£680m), with organic growth standing at 8%.
Germany’s Bechtle grew business volumes 15.8% YoY to €1.89bn in its first quarter (its interim results are due out in August).