Alten’s revenues in Q4 slowed down to a growth of +7.3% yoy (at CC/CS ), following double-digit CC/CS growth during Q1-Q3 2019. The company suffered from a demanding comparison basis (+13.7% in Q4 2018), and one lesser working day in several countries (a 0.15% impact on the group’s revenues).
Alten impressed, again, with its growth performance. In Q1 2019, revenue growth (at CC/CS yoy) reached +12.5%, to EUR 643m. This quarter, Alten added almost EUR 100m in revenues, two-thirds of it through organic growth and one third through acquisitions. The Forex impact was negligible.
We are now entering the season for Q1 earnings, and as always we will look into changes in major trends. The state of the automotive industry will be an area we will be closely monitoring.
It is striking to see how few onshore ER&D service vendors have built a significant Indian or nearshore presence. Onshore vendors do acknowledge that the Indian ER&D service vendors grow faster than they do but argue that most of the Indian vendors service U.S. clients or industries (mostly, ISVs, technology vendors and telecom equipment manufacturers) they do not quite address.
Alten has continued to perform well this year, with a Q2 2018 growth of 12.9% yoy, to revenues of EUR 552m. CC/CS growth accelerated sequentially from 8.5% in Q1 to 11.5% in Q2, driven by high recruitment levels, high
Altran, Alten, and Akka have in the past year accelerated their expansion into the US ER&D services market. It is striking to see how they have taken different routes. Altran swallows Aricent and gets scale in the US telecom
ERDservices is pleased to announce its ranking of the fastest-growing ER&D service vendors in CY 2017. Note that this ranking is based on reported numbers (and not on CC or CC/CS numbers). More about the methodology below the chart.
As part of its 2017 earnings, Alten reiterated the core principles of its business model, which include onshore delivery, geographical expansion, ER&D services, and a balanced client base. Alten made a point that it is not altering its business
Several industry observers, and even, the CEO of Altran, Dominique Cerutti, have predicted that following the Altran Aricent move, the ER&D industry would accelerate its industry consolidation. Is this right? The USD 2bn Aricent acquisition certainly is the largest