Oslo, 5th May 2020: Itera had a strong growth of 13% in the first quarter as
well as further improvement in profitability with its EBIT margin reaching 11.9%
(9.7%). This growth was driven by a particularly strong increase in new
customers, which were responsible for 12% of total revenue in the period.  

Itera reports operating revenue of NOK 161.9 million (NOK 142.8 million) for the
first quarter of 2020, which represents growth of 13%. This growth was
predominantly from Itera’s core digital business, from which the  revenue
increased by 15% to NOK 131.6 million from NOK 114.5 million, while the revenue
generated by Itera’s traditional data centre operations increased by 7% from NOK
28.2 million to NOK 30.2 million. 

Itera’s total operating expenses in the first quarter of 2020 were 11% higher at
NOK 142.7 million (NOK 128.9 million). 

The operating result before depreciation and amortisation (EBITDA) for the first
quarter of 2020 was a profit of NOK 29.3 million (NOK 22.3 million). The
operating result (EBIT) for the first quarter was a profit of NOK 19.2 million
(NOK 13.8 million). The EBIT margin for the first quarter of 2020 was 11.9% as
compared to 9.7% in the first quarter of 2019. 

Net cash flow from operating activities was NOK 7.5 million (NOK –5.0 million)
in the first quarter of 2020. 

- Taking the unprecedented corona situation into account, Itera ended the first
quarter with a satisfactory activity level, with all our employees working from
home. One reason is that we have limited exposure to the industries worst
impacted, and that the major part of our role in these industries is core
systems and strategic digitalisation projects intended to improve customer
competitiveness, which are unlikely to be downscaled or stopped. Another factor
is our hybrid delivery model, which allows our services to provide a competitive
advantage relative to local staff augmentation based business models as a result
of their attractive blended rates for high-quality work. In fact, the Nordic
staff augmentation business model is being very disrupted by COVID-19, which
should benefit our hybrid delivery model that features cross-functional teams
across geographies, says Arne Mjøs, CEO of Itera.

The revenue from Itera’s 30 largest customers accounted for 77% of its operating
revenue, which is at the same level as in the first quarter of 2019.

Itera’s headcount at the end of the first quarter of 2020 was 527 as compared to
488 at the end of the first quarter of 2019. 

Itera has nearshore development centres in Slovakia and Ukraine. The proportion
of Itera’s capacity that is located in these locations (its nearshore ratio) was
49% (46%) at the end of the first quarter.



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 – the specialist in creating sustainable digital business 
Itera is a specialist in creating sustainable 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 has about 530
employees I the Nordics, Ukraine and Slovakia. Itera is listed on Oslo Stock
Exchange under the ticker ITE.