Oslo, 24 August 2016: The progress achieved in the first
quarter continued and strengthened in the second quarter,
and the Group delivered solid growth. Growth was
particularly strong in Denmark and at the Group's nearshore
activities, but all units in Norway also achieved
profitability improvements.
The Group reports pro forma operating revenue for continuing
operations of NOK 110.0 million (NOK 99.7 million) for the
second quarter of 2016 and of NOK 214.1 million (NOK 198.9
million) for the first six months of 2016. This represents
revenue growth of 10% and 8% respectively. In percentage
terms Itera's Danish unit and its nearshore activities
achieved the strongest revenue growth, but revenue was also
up at all the Group's Norwegian units.
The Group's operating result before depreciation and
amortisation (EBITDA) for the second quarter of 2016 was a
profit of NOK 15.6 million (a profit of NOK 11.0 million in
Q2 2015), and for the first six months of 2016 was a profit
of NOK 26.7 million (a profit of NOK 20.8 million in H1
2015). For these same periods the Group's operating results
before non-recurring items (EBIT) were a profit of NOK 10.7
million (a profit of NOK 6.1 million in Q2 2015) and a
profit of NOK 16.8 million (a profit of NOK 11.2 million in
H1 2015) respectively. The EBIT margin was 9.7% (6.2%) for
the second quarter of 2016 and 7.9% (5.7%) for the first six
months of the year.
Cash from operating activities was NOK 10.7 million (NOK
-6.6 million) for the second quarter of 2016 and NOK 7.2
million (NOK -14.7 million) for the first six months of the
year.
A key part of Itera's strategy is to maintain and develop
the Group's largest and most strategic relationships across
national borders and areas of expertise. An example of this
from the second quarter is Itera's development of new web
solutions for Nets, which is a centrally important customer
for the Group. Itera has total responsibility for developing
an entirely new universe of internet solutions to maintain
Nets' corporate branding in five countries as well as in
relation to a global English version. 'Total responsibility'
means that most of Itera's areas of expertise and service
spectrum is being used, which represents part of the core of
the Group's strategy.
"We are very satisfied that the progress achieved in the
first quarter continued in the second. We are becoming more
and more efficient at using resources and units across the
Group. Local presence is becoming less critical, and it is
becoming easier to grow in conjunction with our customers
regardless of where delivery teams are physically located",
comments Arne Mjøs, CEO of Itera.
The revenue from Itera's 30 largest customers grew by 7% in
the second quarter of 2016 and accounted for 73% of the
Group's operating revenue, up from 69% in the second quarter
of 2015.
The proportion of Itera's capacity that is located nearshore
(its nearshore ratio) was 36% (29%) at the end of the second
quarter. The Group's development centre in Bratislava
provides great flexibility with regard to meeting the target
of achieving a nearshore ratio of 50% in the future.
For more information:
Arne Mjøs, CEO
+47 905 23 172
arne.mjos@itera.no
Bent Hammer, CFO
+47 982 15 497
bent.hammer@itera.no
About Itera - great experiences for the customer's customers
Itera is a communication and technology company that
delivers services in the strategy and consulting, design and
development, and operations and management areas. Its
customers are Nordic organisations that aim to deliver great
user experiences to their customers, and that see the
instrumental contribution that innovation, efficient
communication and good technology use can make to achieving
their goals. Itera is headquartered in Oslo, and has about
400 employees across the Nordics and in Ukraine and
Slovakia. Itera is listed on Oslo Stock Exchange under the
ticker ITE.