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2009 Revenues Down 24% at ISG
Information Services Group (ISG), the company started by former VNU leader Michael Connors and now based around outsourcing consultancy TPI, has announced results for 2009, showing an improved fourth quarter rounding off a tough year.
 Chairman and CEO Connors said the firm faced 'a difficult economic environment' in 2009 but reported 'significant progress', with the opening up of new geographic and vertical markets, the launch of its first information products and the beginnings of an annuity revenue stream in TPI Governance Services. He added: 'we believe we are seeing the signs of a shift back to the use of sourcing strategies by our clients to optimize cost structures now that many of them have completed most of their short-term cost reduction actions.'
Q4 revenues or $34.5m were down 8% on the same period in 2008, but up 6% on Q3 2009, with revenues in the Americas less impacted (down 4%) than those in the rest of the world (down 22%). Operating income of $1.6m compared with $3.2m in Q4 2008 - although a goodwill impairment charge distorted the 2008 figure, reported as a loss of $70.9m. Adjusted EBITDA totaled $5.0m (15.6% of fee revenues), down from $5.8m (16.8%) in Q4 2008.
The firm said the declines resulted primarily from lower revenues in all regions partially offset by cost reductions resulting from ongoing productivity programs.
Full year figures showed a more dramatic fall: reported revenues were $132.7m, down 24% from $174.8m in 2008. In the Americas the fall year-on-year was 20%, while revenues from international operations decreased 22% on a constant currency basis and 29% including the impact of currency translation. Excluding the impact of goodwill impairment charges in both years, operating income of $7.6m for full year 2009 was $9.0 million below the figure for 2008, while adjusted EBITDA was $19.9m (16.1% of fee revenues), down 32% from $29.1m (18.1%) in 2008; a decline of 26% at constant currencies.
Founded in 2006, the shell group bought TPI, the largest sourcing advisory firm in the world, in November 2007. ISG is based in Stamford, Connecticut and is online at www.informationsg.com . TPI's home page is at www.tpi.net .
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