Oslo, 17th August 2018: The Group's operating revenue was up 21% compared with the same period in 2017. The organic growth for the first half year was 16 percent.
The Group reports operating revenue of NOK 137.6 million (NOK 113.5 million) for the second quarter of 2018, which represents a growth of 21%. Revenue from services delivered by Itera's own consultants grew by 21%, while third-party service revenue was up by 34%. Subscription-related revenue grew by 4%. For the first six months revenue was up 16% to NOK 268.7 million.
The Group's total operating expenses in the second quarter of 2018 were 21% higher at NOK 128.1 million (NOK 105.7 million), while for the first six months they were up 17% to NOK 249.3 million.
The operating result before depreciation and amortisation (EBITDA) for the second quarter of 2018 was a profit of NOK 14.7 million (NOK 12.9 million), while the operating result (EBIT) was a profit of NOK 9.4 million (NOK 7.8 million). The EBIT margin for the second quarter of 2018 was 6.9% as compared to 6.8% in the second quarter of 2017.
Cash flow from operating activities was NOK 21.6 million (NOK 5.5 million) in the second quarter of 2018 and NOK 13.3 million (NOK 4.7 million) for the first six months of 2018, which is seasonally very good. Cash flow from operating activities last 12 months was NOK 58 million.
- Innovation is picking up speed in larger private and public companies, with increasing use of digital platforms. I am particularly pleased to see that more and more customers choose Itera due to our holistic approach with interdisciplinary project teams, focus on customers' customers, full range of services and our hybrid delivery model with consultants in the Nordic and nearshore region, says Arne Mjøs, CEO of Itera.
The revenue from Itera's 30 largest customers grew by 26% in the second quarter of 2018 and accounted for 80% of the Group's operating revenue, up from 76% in the second quarter of 2017.
The Group's headcount at the end of the second quarter of 2018 was 486 as compared to 430 at the end of the second quarter of 2017.
The proportion of Itera's capacity that is located nearshore (its nearshore ratio) was 44% (39%) at the end of the second quarter. The Group has development centres in Slovakia and Ukraine and is approaching its long-term strategic target of achieving a nearshore ratio of more than 50%.
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 specialist in creating digital business, with communication, technology and innovation as the core competency tools. Itera delivers projects and services in cross-functional teams to Nordic organisations that see the instrumental contribution that innovation, efficient communication and smart utilization of technology can make to achieving their goals. Itera's core sectors are banking and insurance, public, healthcare, the service industry, energy and utility. Itera is headquartered in Oslo, and has about 500 employees across the Nordics and in Ukraine and Slovakia. Itera is listed on Oslo Stock Exchange under the ticker ITE.