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Dato/tid 19.02.2016 08:25
Utsteder Itera ASA
UtstederID ITE
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Kategori HALVÅRSRAPPORTER OG REVISJONSBERETNINGER / UTTALELSER OM FORENKLET REVISORKONTROLL
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Tittel Continued improvements in growth and profitability
Tekst
Oslo, 19 February 2016: Itera's IT hosting and consulting 
activities in Norway and Denmark grew strongly with 
signficant profitability improvements achieved. Itera's 
nearshore activities also saw strong growth.

The Group reports operating revenue of NOK 113.1 million 
(110.4) for the fourth quarter of 2015 and NOK 435.4 million 
(439.8) for 2015 as a whole.

As in the previous quarters of 2015, Itera's consulting 
activities in Sweden produced weak figures in the fourth 
quarter. Keeping this unit is not regarded as important to 
Itera's ability to realise its strategy, and it will be 
closed with effect for accounting purposes from 1 February 
2016. The business in question has operated on a stand-alone 
basis in Sweden, meaning its closure will have no effect on 
the Group's Nordic customers, as they are being served by 
other units in the Group.

The Group experienced strong demand for its services and 
achieved a high level of efficiency in the quarter. Pro 
forma 
operating revenue excluding discontinued businesses (Itera's 
IT hosting business in Sweden was sold with effect from 1 
July 2015) was NOK 106.6 million (95.8) for the fourth 
quarter, equivalent to growth of 11%. Pro forma operating 
revenue for 2015 as a whole was NOK 394.2 million (379.5), 
equivalent to growth of 4%.

The group's total operating costs were 7% lower in the 
fourth 
quarter of 2015 relative to the same period in 2014 at NOK 
105.0 million (112.6). Pro forma operating costs were NOK 
94.5 million (97.9) for the fourth quarter and NOK 366.3 
million (371.5) for 2015 as a whole.

The operating result before non-recurring items (EBIT) for 
the fourth quarter of 2015 was a profit of NOK 8.2 million 
(a 
loss of NOK 2.2 million in Q4 2014). EBIT for 2015 as a 
whole 
was NOK 20.1 million (3.8). Pro forma figures excluding 
discontinued businesses show EBIT before non-recurring items 
of NOK 8.8 million (-2.1) for the fourth quarter and NOK 
26.4 
million (4.0) for 2015 as a whole.

The fourth quarter has traditionally been the quarter with 
the strongest cash flow from operations. Cash flow from 
operations was NOK 30.1 million (46.8) for the fourth 
quarter 
of 2015 and NOK 20.8 million (45.8) for 2015 as a whole. 
Cash 
flow from operations for 2015 was NOK 19.7 million lower 
than 
EBITDA, which is largely due to higher accounts receivable 
from customers due to growth and on-account invoicing 
towards 
the end of the year not paid in the quarter. Cash flow from 
operations for 2015 was also influenced by exceptionally 
high 
cash flow from operations in 2014. 

The revenue from Itera's 30 largest customers grew by 11% in 
the fourth quarter of 2015 and accounted for 72% of the 
Group's operating revenue, up from 68% in the fourth quarter 
of 2014.

"We are very satisfied with Itera's performance from 
continuing operations, with double-digit pro forma revenue 
growth. The Group's structure has been simplified, and we 
are 
now concentrating on reinforcing the strong progress we have 
made", comments Arne Mjøs, CEO of Itera.

The Group experienced good order inflows in the fourth 
quarter of 2015, with customers such as Eika Forsikring, 
VPS, 
If Skadeforsikring, Santander, KLP, the Norwegian Public 
Service Pension Fund and Bluegarden either extending 
existing 
or entering into new agreements. These agreements span the 
whole range of services offered by the group, from 
consultancy and strategy through to IT hosting and 
management 
via design and development. The design and development 
projects cover both business-critical core systems and 
communications solutions for Itera's customers to use with 
their own customers, existing as well as potential. The IT 
hosting and management services to an increasing degree 
involve setting up and hosting cloud-based platforms and 
applications rather than more traditional technology. 

The Group's headcount at the end of the fourth quarter of 
2015 was 400 as compared to 445 at the end of the fourth 
quarter of 2014. The decrease can largely be explained by 
the 
sale of Itera's IT hosting business in Sweden in the first 
half of 2015 and the discontinuation of unprofitable 
activities over the course of the year.

The proportion of Itera's capacity that is located nearshore 
(its nearshore ratio) was 33% (29%) at the end of the fourth 
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 

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