3 april 2015
MAYKOR Reports 2014 Year End Financial Results: Strong Growth Despite Russia’s Weakened Economy
MAYKOR today announced that the company’s 2014 total revenue was 10.89 billion rubles, a 17.4% increase over the previous year. The company was able to achieve this positive growth despite the downturn in Russia’s economy. As in prior years, most of MAYKOR’s 2014 revenue came fr om retail services at 5.27 billion rubles (48% of revenue) and government agencies at 2.24 billion rubles (21% of revenue). Growth rates in these areas were 17% and 30%, respectively.

MAYKOR’s customer base continues to consist primarily of large and medium geographically distributed companies taking an integrated approach to IT support, physical infrastructure and business applications. The economic downturn has encouraged the development of BSaaS (Business Solutions as a Service) models, where customers lease the necessary infrastructure together with technical support and, in most cases, even staff. Essentially, customers are paying for outcome-based business solutions which allow them to avoid the cost of modernization and integration. In general, MAYKOR has seen a gradual increase in the duration of contracts: previously, contracts lasting more than 1 year were rare; however, in 2014, more and more customers began to execute contracts lasting 3 to 5 years. The company also saw a high percentage of customers extending existing contracts.

In addition to basic IT infrastructure maintenance services, MAYKOR’s customers are gradually expanding their engagement scope and adding service control and access control systems, alarm systems and video surveillance, ventilation, air conditioning systems and other physical infrastructure. Demand for the most comprehensive range of outsourcing services comes from the retail sector. MAYKOR’s key customers in the retail industry include CentrObuv, Detsky Mir Group, DIXY, Gloria Jeans, IKEA, INCITY, KARI, K-Rаutа, Korablik, Media Markt, METRO Cash & Carry, Melon Fashion Group, O'STIN, Obuv.com, Snow Queen, Sportmaster, Yuterra, X5 Retail Group and YUM! Brands Russia; retail stores of MegaFon, MTS, Svyaznoy and retail gas stations such as Gazprom Neft, LUKOIL and Rosneft.

In 2014, MAYKOR executed a number of government contracts covering IT infrastructure support for Federal Agency for State Property Management, Federal Bailiff Service, Federal Customs Service, FSUE Goznak, FSUE Russian Post, Government of Dagestan, Government of Moscow Province, Ministry of Agriculture, Ministry of Finance, Moscow Department of Finance, Social Insurance Fund and State Duma. The company also signed the largest outsourcing contract to date in the education sector with Far Eastern Federal University.

MAYKOR significantly strengthened its banking division, completing a deal to acquire BTE in 2014. This has led to an increase of over 33% in revenues from the banking sector. The acquisition resulted in the formation of MAYKOR-BTE subsidiary and Russia's largest repair center for banking equipment. In 2014, MAYKOR provided services for leading companies in the financial sector including B&N BANK, Gazprombank, Otkritie Bank, Promsvyazbank, Raiffeisenbank, Russian Agricultural Bank, Sberbank of Russia and VTB 24.

In addition, in 2014, MAYKOR continued its partnership with Russia’s Big Three mobile operators and Rostelecom – both within the IT outsourcing and infrastructure services areas. The company also collaborated with prominent industrial sector clients such as Merkator, Synergy, Tikhvin Freight Car Building Plant and Tsaritsyno as well as with key energy and utilities companies such as E.ON Russia, RusHydro and Rosseti.

"MAYKOR’s financial performance in 2014 was influenced by two factors. First, the economic downturn motivated customers to abandon large integration projects and focus on maintaining stable operations and developing existing infrastructure. Secondly, the company as a whole is in a constant state of self-improvement: developing our range of services and capabilities to strengthen the quality and value we provide to our customers. As an industry leader, MAYKOR has contributed greatly to the formation and growth of the Russian outsourcing market, wh ere not only new customers, but also traditionally conservative industry segments have become more open to the notion of outsourcing," commented Sergey Sulgin MAYKOR’s President.

The global professional community continues to recognize MAYKOR as an outsourcing leader – the company maintained its position on the International Association of Outsourcing Professionals (IAOP) Global Outsourcing 100 list and was also recognized as one of the top ten providers in the EMEA region in the ISG Outsourcing Index.

The number of MAYKOR’s employees grew to 5,200 in 83 delivery centers across Russia in 2014 and the company’s corporate social policy with social, educational and charitable programs throughout the country reflects this expansive presence. In 2014, MAYKOR actively collaborated with universities around the country to increase the popularity of technical professions among young people. In particular, the company became a partner of the "Contemporary Art Museum: Department of Labor and Employment" exhibition at the State Tretyakov Gallery, which aimed to revive the prestige of the applied professions.
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