Oslo, 25th February 2020: Itera experienced a high level of demand in the core
digital business and increased its total EBIT margin to 12.7% for the fourth
quarter and 10.0% for 2019 as a whole. Investments in Managed Cloud Service
offerings showed positive effects.

Itera reports operating revenue of NOK 146.0 million (NOK 141.3 million) for the
fourth quarter of 2019, which represents growth of 3%. Revenue from Itera’s own
services grew by 13% and subscription services grew by 7%. Third-party services
were down by 49% following the completion of a significant engagement in
Denmark.  

Operating revenue for 2019 as a whole was NOK 560.3 million (NOK 531.3 million),
equivalent to growth of 5%.

Gross profit (revenue minus cost of goods sold) was NOK 127.2 million (NOK 117.9
million) in the fourth quarter, an increase of 8%. This growth was driven by a
particularly strong increase in new customers. Gross profit for 2019 as a whole
was NOK 483.0 million (NOK 444.0 million), which represents growth of 9%
relative to 2018. 

Itera’s total operating expenses in the fourth quarter of 2019 were 2% higher at
NOK 127.4 million (NOK 124.4 million). Operating expenses for 2019 as a whole
totalled NOK 504.1 million (NOK 488.5 million).

The operating result before depreciation and amortisation (EBITDA) for the
fourth quarter of 2019 was a profit of NOK 28.0 million (NOK 22.3 million),
which corresponds to an EBITDA margin of 19.2% (15.8%). 
The operating result (EBIT) for the fourth quarter was a profit of NOK 18.6
million (NOK 16.9 million). The EBIT margin for the fourth quarter of 2019 was
12.7% as compared to 12.0% in the fourth quarter of 2018. 
EBIT for 2019 as a whole was NOK 56.2 million as compared to NOK 42.8 million in
2018, which corresponds to an EBIT margin of 10.0% (8.1%).  

Itera’s operating profit from its core digital business was NOK 15.7 million
(NOK 17.8 million), giving an EBIT margin of 14.4% (17.0%). Itera’s earnings
from its traditional data centre operations were NOK 2.9 million (NOK -0.9
million), giving an EBIT margin of 7.9% (-2.6%). The transformation program to
shift Itera’s data centre operations to cloud offerings is progressing in line
with the plan and the Managed Cloud Services business will be reported as part
of the core digital business from 2020.  

Net cash flow from operating activities was NOK 43.1 million (NOK 42.0 million)
in the fourth quarter of 2019 and NOK 80.0 million (NOK 56.8 million) in 2019 as
a whole. Cash and cash equivalents amounted to NOK 53.1 million at 31 December
2019, compared to NOK 55.3 million at 31 December 2018.

The revenue from Itera’s 30 largest customers accounted for 75% of its operating
revenue, down from 79% in the fourth quarter of 2018, as Itera expanded into new
industries and attracted new customers.

- 2019 has been a year of strong development. We have followed the strategy and
have gained new customers in new sectors, including energy, maritime and
fishery. We have entered new geographical markets and see a strong development
in both Western Norway and Iceland. We have also delivered assignments in the
United States, and experience more than ever that our delivery model facilitates
efficient and seamless collaboration across geographical borders. Furthermore,
we have built a new cloud managed services business area which gradually has
shown good results, says Arne Mjøs, CEO of Itera.
Itera’s headcount at the end of the fourth quarter of 2019 was 512 as compared
to 486 at the end of the fourth quarter of 2018. The proportion of Itera’s
capacity located in Slovakia and Ukraine was 49 percent (45 percent) at the end
of the fourth quarter.

At its meeting on 24 February 2020, the Board of Directors passed a resolution
to propose an ordinary dividend of NOK 0.30 per share at the Annual General
Meeting on 25 May 2020. It will also ask for its authorisation to approve
possible additional dividends to be renewed.


Further information:

Arne Mjøs, CEO | arne.mjos@itera.no | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.no | +47 982 15 497


About Itera – the specialist in creating 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 is listed on
Oslo Stock Exchange under the ticker ITE.