Oslo, 19 August 2021: Itera’s core digital business had an all-time high organic growth of 24% and solid operating profit margin of 14.8%. The number of employees in this part of the business increased by 76 during the last 12 months, representing an increase of 16%.
Itera reports operating revenue of NOK 150.8 million (NOK 121.6 million) for the second quarter of 2021 related to its core digital business, representing growth of 24%.
- As we have seen over the past pandemic year, digital adoption curves are accelerating across industries and business functions. We are seeing positive developments in the market for our services in all locations. Cloud services, machine learning and artificial intelligence are ever more critical enablers as all our customers are increasing their focus on enterprise-wide transformation, says Arne Mjøs, CEO of Itera.
For Itera’s core digital business, total operating expenses in the second quarter of 2021 were 21% higher at NOK 128.5 million (NOK 106.0 million). The operating result before depreciation and amortisation (EBITDA) for the second quarter of 2021 was a profit of NOK 28.7 million (NOK 23.5 million), corresponding to an EBITDA margin of 19.0% (19.3%). The operating result (EBIT) for the second quarter was a profit of NOK 22.3 million (NOK 15.6 million) and the EBIT margin 14.8% (12.8%).
The transformation of Itera’s own data centre operations to the cloud is progressing according to plan. The revenue from this business constituted only 6% of the total revenue in the second quarter and will become marginal towards the end of the year. The transformation will have a negative impact on Itera’s revenue and earnings in 2021. Total operating revenue including the data centre operations in the second quarter of 2021 was NOK 161.1 million (NOK 150.0 million) with an EBIT of NOK 16.6 million (NOK 15.8 million).
Net cash flow from operating activities was NOK 24.1 million (NOK 39.6 million) in the second quarter of 2021. The reduction is primarily due to the authorities granting deferred payment of public duties from the second to the third quarter of 2020 in connection with the pandemic.
Itera’s headcount at the end of the second quarter of 2021 was 539 in the core digital business, which represents growth of 76 in the last twelve months. The number of employees in the data centre operations decreased by 27 in the same period. The business as a whole had 579 (530) employees at the end of the second quarter. Itera has nearshore development centres in Slovakia and Ukraine. 51% (48%) of Itera’s delivery capacity was located here at the end of the second quarter.
- All our customers are on a journey to becoming sustainable, digital businesses. I am incredibly proud of our fantastic people, who over the course of the pandemic have worked hard to help our customers use digital technology to get through one of the most challenging moments in modern history, says Arne Mjøs, CEO of Itera.
The revenue from Itera’s 30 largest customers accounted for 74% of its operating revenue, which is a decrease of two percentage points compared to the second quarter of 2020. New customers accounted for 15% of revenue.
For more information:
Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497
About Itera – specialists in creating sustainable digital business
Itera creates sustainable digital business for innovative businesses in data-intensive market segments. The group delivers solutions and services in interdisciplinary teams within technology, strategic consulting and design, and works in a distributed delivery model, with teams across national borders. For the past five years, Itera has been named one of Norway's 25 most innovative companies and its distributed delivery model was recognised as best in the world by the Global Sourcing Association (GSA) in 2018. The group has 579 employees, operations in Norway, Denmark, Sweden, Iceland, Slovakia and Ukraine and is listed on the Oslo Stock Exchange under the ticker ITERA.