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ISG Revenue Flat in 2010
US-based holding company Information Services Group (ISG) has announced results for the fourth quarter and year ended December 31, 2010. Q4 revenues were $31.6m, down $2.9m (8%) from Q4 2009, but the full year figure was close to that for 2009.
 The group has recently made two acquisitions to add to outsourcing consultancy TPI which it bought in April 2007. Benchmarking specialist Compass was added in January, and public sector specialist STA Consulting last month.
The group's fourth quarter revenues grew rapidly in Asia Pacific (49% up on Q4 2009 before currency impact), but tumbled in the Americas (down 19%) and declined in EMEA (down 3%). Q4 2010 adjusted EBITDA was $1.0m, down from $5.0m in Q4 2009 but dented by $2.3m in acquisition-related costs, mostly from the buying of Compass. The firm reported an operating loss of $2.5m including the $2.3m in acquisition-related costs, versus income of $1.6m for Q4 2009.
For the full year, ISG reported flat revenues of $132.0m (2009 $132.7m) with each quarter slightly down on the previous one. 2009 revenues were already down 24%. As with the fourth quarter, strong growth in Asia Pacific in the full year 2010 (35% at constant currencies) was offset by revenue decline in the Americas (down 1%) and EMEA (down 10%). Adjusted EBITDA for 2010 was $13.7m, or $16.1m excluding $2.4m in acquisition-related deal costs - a fall of $3.9m from the previous year. Diluted adjusted EPS was $0.14 ($0.18 excluding deal costs) compared to $0.26 for 2009.
The firm's Chairman and CEO, former VNU boss Michael Connors, said the firm had 'stabilized... after a tough 2009, witnessing a slow and steady recovery in 2010.' Connors believes that the two recent acquisitions have helped to make the company stronger, providing proprietary data, new capabilities and strong brands. He concludes: 'We are positioning ourselves for growth as economic conditions improve.'
Web site: www.informationsg.com .
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