Itera ASA

10/27/2021 | Press release | Distributed by Public on 10/26/2021 23:15

Continued all-time high growth and solid operating margin

Oslo, 27 October 2021: Itera's core digital business reports an all-time high organic growth of 27% in the third quarter. The operating profit margin was 10.4% in the third quarter, and 13.5% for the first nine months of 2021. The number of employees in this part of the business increased with 50 in the third quarter, and with 103 employees (21%) over the last 12 months. - We are seeing all emerging technology become digital capabilities in the cloud. Every company will need to be a technology company, and data will be the key to success. While customers' digital transformations are creating momentum within our business, most companies are at an early stage in their transformation. All face multi-year journeys because the transition to the cloud and adoption of new technologies represent a profound transformation. These changes will simultaneously create exciting business opportunities as well as challenging jobs and career paths for our skilled people, says Arne Mjøs, CEO of Itera. Itera reports operating revenue of NOK 138.9 million (NOK 109.7 million) for its core digital business for the third quarter of 2021, which represents growth of 27%. For the first nine months, Itera's operating revenue was NOK 434.2 million (NOK 362.0 million), which represents growth of 20%. Total operating expenses in the third quarter of 2021 were 27% higher at NOK 124.5 million (NOK 98.3 million), while for the first nine months they were up 19% to 375.4 million. The operating result before depreciation and amortisation (EBITDA) for the core digital business for the third quarter of 2021 was a profit of NOK 21.0 million (NOK 19.1 million), giving an EBITDA margin of 15.1% (17.4%). For the first nine months EBITDA was NOK 78.0 million (NOK 69.1 million) with an EBITDA margin of 18.0% (19.1%). The operating result (EBIT) for the third quarter was a profit of NOK 21.0 million (NOK 11.3 million), giving an EBIT margin of 10.4% (10.3%). For the first nine months EBIT was NOK 58.9 million (NOK 45.6 million) with an EBIT margin of 13.5% (12.6%). The transformation of Itera's own data centre operations to the cloud has entered its final stage, with capacity and competence now being reallocated to focus on migrating existing customers to the cloud. In addition, greenfield solutions are being set up for new customers based on efficient, tailored methodology and Itera's Cloud Centre of Excellence. Itera expects the cloud business to gain momentum and to contribute to growth and profitability in 2022. Itera's total operating revenue including the data centre operations in the third quarter of 2021 was NOK 147.5 million (NOK 137.3 million) with an EBIT of NOK 10.0 million (NOK 14.5 million). Itera's headcount for its core digital business at the end of the third quarter of 2021 was 589 as compared to 487 at the end of the third quarter of 2020. This represents an increase of 103 employees (21%) over the last 12 months and 50 employees in the third quarter alone. Itera's total headcount at the end of the third quarter of 2021 was 622 as compared to 556 at the end of the third quarter of 2020. This includes a reduction of 37 employees related to the data centre operations. Itera has nearshore development centres in Slovakia and Ukraine. The proportion of Itera's capacity located in these locations (its nearshore ratio) was 51% (46%) at the end of the third quarter. - I am particularly content to see the growth in our pool of talented employees, which demonstrates the effectiveness of our work to increase awareness of our brand and our recruitment capacity in all locations. I am proud of our ability to provide exciting career paths, interesting projects with leading customers and partners, and our flexible, transparent, and diversified culture, says Arne Mjøs, CEO of Itera. The revenue from Itera's 30 largest customers accounted for 77% of its operating revenue, which is a decrease of one percentage point compared to the third quarter of 2020. New customers accounted for 14% of revenue. At its meeting on 26 October 2021, the Board of Directors approved the payment of an additional dividend of NOK 0.10 per share for 2020 in accordance with the authorisation it was granted at the Annual General Meeting on 25 May 2021. The share will trade excluding the right to receive the additional dividend starting on 22 November 2021 and the dividend will be paid on 3 December 2021. For more information: Arne Mjøs, CEO | [email protected] | +47 905 23 172 Bent Hammer, CFO | [email protected] | +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 622 employees, operations in Norway, Denmark, Sweden, Iceland, Slovakia and Ukraine and is listed on the Oslo Stock Exchange under the ticker ITERA.