Services and Licensing in 2018
Licensing activity
The Licensing activity is the mainstay of ESI’s business model, representing 79% of annual sales at €109.8m (+3.9%). Primarily comprised of yearly licenses, which are for a large part billed at the end of the year, this business brought in €49.9m (+1.8%) for Q4, a good performance considering the early signing of the €1.7m renewal contract in the 3rd quarter, and €70.4m for H2 (+5.6%).
The FY18 Licensing activity consists of:
- Repeat business (€92.2m), (renewal and add-ons) representing 84% of the licensing revenues and generating significant recurring business (87.2%).
- New business (new customers or new solutions at existing customers) (€17.6m), representing 16% of total Licensing revenues.
Services activity
The Services (Consulting) activity combines various services, from industrial and advanced application studies, to R&D projects and training. The significant upturn in business during the second half (+6.3%) at €15.7m was driven by the global momentum of some major European companies, particularly in the French automotive, aeronautics and energy industries. Overall, sales for the Services division remained steady at €29.6m (+0.1%), for a 21% share of total annual revenues.
