Oslo, 16th February 2018: The Group's operating revenue was up 15% compared with the same period in 2016. Itera added another net 16 employees in the quarter, bringing the net increase for the year to 96 employees or 24%.
The Group reports operating revenue of NOK 135.0 million (NOK 117.3 million) for the fourth quarter of 2017, which represents growth of 15%. Revenue from services delivered by Itera's own consultants grew by 25%, while third-party service revenue was up by 11%. Subscription-related revenue grew by approximately 1%. Revenue growth in Denmark and Sweden totalled 48%.
Operating revenue for 2017 as a whole was NOK 475.0 million (NOK 424.8 million), equivalent to growth of 12%.
The Group's total operating expenses in the fourth quarter of 2017 were 16% higher at NOK 121.2 million (NOK 104.0 million). Operating expenses for 2017 as a whole totalled NOK 435.8 million (NOK 389.0 million).
The operating result before depreciation and amortisation (EBITDA) for 2017 as a whole was a profit of NOK 59.6 million (a profit of NOK 55.6 million in 2016), while the operating result (EBIT) was a profit of NOK 39.3 million (a profit of NOK 34.1 million in 2016). The operating margin in 2017 was 8.3% (8.0%).
Cash flow from operating activities was NOK 32.7 million (NOK 36.8 million) in the fourth quarter of 2017 and NOK 49.4 million (NOK 48.4 million) for 2017 as a whole.
- A year ago, we stated that we had to ramp up recruitment to meet the strong demand related to digitalization. Our efforts have been succesful, with almost 100 new employees. We are now an organization of 500 specialists in creating digital business, enabled through combining the Group's complete range of services within communication and technology. The fact that we have onboarded that many people in 12 months illustrates the maturity and efficiency of the organization, with well-functioning processes and routines that are common across borders, says Arne Mjøs, CEO of Itera.
The revenue from Itera's 30 largest customers grew by 17% in the fourth quarter of 2017 and accounted for 78% of the Group's operating revenue, up from 74% in the fourth quarter of 2016.
- During 2017, we have established Iceland as a new market. Our activity in the Icelandic market started just over a year ago. Today, more than 40 of our employees have full-time engagements at our Icelandic clients in hybrid projects. Iceland is an exciting market with a general maturity associated with nearshoring, which is a good fit with our strategy, says Arne Mjøs.
The Group's headcount at the end of the fourth quarter of 2017 was 491 as compared to 395 at the end of the fourth quarter of 2016.
The proportion of Itera's capacity that is located nearshore (its nearshore ratio) was 43% (37%) at the end of the fourth quarter. The Group has development centres in Slovakia and Ukraine and has a strategic target of achieving a nearshore ratio of 50% over the long term.
At its meeting on 15 February 2018, the Board of Directors passed a resolution to propose an ordinary dividend of NOK 0.25 per share at the Annual General Meeting on 22 May 2018. It will also ask for its authorisation to approve possible additional dividends to be renewed.
Further information:
Arne Mjøs, CEO Bent Hammer, CFO
+47 905 23 172 +47 982 15 497
arne.mjos@itera.no bent.hammer@itera.no
About Itera - specialists in creating digital business
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 almost 500 employees across the Nordics and in Ukraine and Slovakia. Itera is listed on Oslo Stock Exchange under the ticker ITE.