Weight of public procurement in Novabase has fallen by half since the crisis – Jornal de Negócios – Portugal

The internationalization has been a key driver of results for 2015 Novabase, weighing already 46% of its total activity. However, the technology remains focused on the domestic market, having reversed the declining sales trend for the first time since the crisis.

“In terms of turnover, the business in Portugal decreased by 5% last year” said Luis Salvado (pictured), CEO of Novabase, during the presentation conference of the results for 2015 this Thursday, February 11. “But,” he continued, “for the first time there was a reversal of sales [contracts won] in Portugal”, not detailing the value of this growth.

Since the contracts with the government did not follow the same pace. “They have declined for several years,” he lamented.

In 2015 public procurement accounted for 10% of total technological turnover. “Before the crisis were worth 18%, fell by nearly half,” added Luis Salvado.

But it is not only the state of the field that Novabase has the perception is still no economic recovery. “We do not feel that is already there is a recovery on the part of our customers,” he said.

To improve performance in the domestic market, Novabase will leave some business with lower margins related to the provision of services. “We want to reduce dependence on third-party products,” he said.

“There are services we provide that are less interesting” in terms of profit margins, he said. Therefore, the intention is to divest these services and strengthen other areas.

“PT has done its job”

Asked if Portugal Telecom (PT) would be one of the companies that would cut these services with low margins, Luis Salvado stressed that not only was a particular company.

“major customers have great bargaining power. And they have mechanisms to make interesting business. There are cases where the services reach a margin of 2 or 3%, whereas before it was 10%. Novabase is not interested in that. But it is not one o’clock PT phenomenon is cross, “he said.

with regard to the cuts that the carrier acquired by Altice proposed to suppliers, Luis Salvado said only that “PT has streamlined its suppliers and has done its job.”

the CEO of Novabase also said that the technology will not only be a supplier of PT altogether, will only cut some of the services it provides to the operator as a result of the new strategy of the group to divest in areas with lower rate of return.

Novabase announced Thursday the results for 2015. the net profit of the company more than doubled to 7.4 million euros, compared to 3.1 million recorded in 2014.

the international operations drove these results, with turnover exceeded outside doors for the first time, the EUR 100 million. Europe continues to excel with operations to increase 44%, already accounting for more than half of international business.