Oslo, 15th February 2019: Itera finished 2018 with an EBIT margin of 12.0% (10.3%) in the fourth quarter, fuelled by 9% growth in its core digital business.
Itera reports operating revenue of NOK 141.3 million (NOK 135.0 million) for the fourth quarter of 2018, which represents growth of 5%. This growth was predominantly from Itera’s core digital business, revenue from which increased from NOK 97.4 million to NOK 105.9 million (+9%), while revenue from traditional data centre operations decreased by 6% from NOK 37.5 million to NOK 35.4 million.
Operating revenue for 2018 as a whole was NOK 531.3 million (NOK 475.0 million), equivalent to growth of 12%.
Itera’s total operating expenses in the fourth quarter of 2018 were 3% higher at NOK 124.4 million (NOK 121.1 million). Operating expenses for 2018 as a whole totalled NOK 488.5 million (NOK 435.7 million).
The operating result before depreciation and amortisation (EBITDA) for the fourth quarter of 2018 was a profit of NOK 22.3 million (NOK 19.1 million), while the operating result (EBIT) was a profit of NOK 16.9 million (NOK 13.9 million). The EBIT margin for the fourth quarter of 2018 was 12.0% as compared to 10.3% in the fourth quarter of 2017. EBIT for 2018 as a whole was NOK 42.8 million as compared to NOK 39.3 million in the same period last year.
Net cash inflow from operating activities was NOK 42.0 million (NOK 33.0 million) in the fourth quarter of 2018 and NOK 56.8 million (NOK 49.7 million) for 2018 as a whole. The increase in the fourth quarter was due to higher EBITDA combined with significant receivables that fell due on the last weekend of September being received at the beginning of October.
- Itera is proud to take an active part in the digitalisation of Norway. An example of our contribution from the fourth quarter is a project delivered to BITS, the banking and finance industry's infrastructure company in Norway, where Itera was engaged to simplify the data exchange between the financial industry and the public sector. Digital collaboration between the finance industry and public sector is a contribution to the digitalisation of Norway, and will represent higher efficiency at lower cost, says Arne Mjøs, CEO of Itera.
The revenue from Itera’s 30 largest customers grew by 10% in the fourth quarter of 2018 and accounted for 79% of its operating revenue, up from 78% in the fourth quarter of 2017.
Itera’s headcount at the end of the fourth quarter of 2018 was 486 as compared to 491 at the end of the fourth quarter of 2017.
The proportion of Itera’s capacity that is located nearshore (its nearshore ratio) was 45% (43%) at the end of the fourth quarter. Itera has development centres in Slovakia and Ukraine, and is approaching its long-term strategic target of achieving a nearshore ratio of more than 50%.
At its meeting on 14 February 2019, the Board of Directors passed a resolution to propose an ordinary dividend of NOK 0.25 per share at the Annual General Meeting on 21 May 2019. 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 specialist in creating digital business, with communication, technology and innovation as its 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 is listed on Oslo Stock Exchange under the ticker ITE.