ICT Group’s revenue fell from $453.6 million in 2007 to $428.2 million in 2008. The company’s net loss deepened from $11.8 million to $23.3 million during the same period. The year ended Dec. 31.
Part of the depending net loss was due to $2.3 million in asset impairment and $12.2 million in goodwill impairment, charges the company did not incur during 2007.
Between the end of 2007 and the end of 2008, the number of operating centers ICT operates globally dropped from 43 to 41. But the number of workstations rose from 13,020 to 13,435, despite the company’s employee ranks having fallen. At the end of 2007, it boasted 19,006 workers. By the end of 2008, this had fallen to approximately 18,000.
As of the end of the year, ICT ceased providing market research services.
While it still boasted roughly the same number of clients – “over 150” – in 2007 no single client accounted for more than 10% of its business. In 2008, Rogers Communications was responsible for 10% of its revenue. That said, the total percentage of revenue its top 10 customers accounted for in 2008 actually dipped to 47% from 49% a year earlier.
As in years past, financial services accounted for nearly half of ITC’s revenue. But since the end of 2006, two industries have seen dramatic shifts in the amount of revenue they contribute. Technology and telecommunications, which had made up 24% of all revenue two years ago, amounted to 31% of the company’s annual take by the end of 2008. And healthcare, which had generated 20% of revenue two years ago, fell to 11% for the year just ended. “Other” has remained more or less consistent, ticking up slightly from 7% to 9%.
The Analyst’s Take: It’ll be interesting to see how financial services as a source of revenue changes during 2009. ICT’s U.S. financial telesales made up 14% of its revenue during 2008, as opposed to 20% during 2007. And the lay of the land for U.S.-based financial services marketers hasn’t gotten any rosier during recent months.
