Oslo 21 August 2019: Webstep ASA reports a slight revenue decrease in the first
half of 2019, due to lower capacity year-on-year. The EBITDA margin remains
solid, although affected by one-off costs and use of subcontractors. The order
book remains strong. Additional measures to re-establish growth capacity have
been implemented to enable Webstep to capitalise on the continued attractive
market momentum.
Webstep ASA ("the Group" or "Webstep") recorded consolidated revenues in the
second quarter of NOK 162.0 million, down 7.4 per cent from the same quarter
last year. The decline is mainly explained by reduced capacity and calendar
effects related to Easter holidays. Revenues in the first half of 2019 decreased
by 1.0 per cent from the same period last year and ended at NOK 346.5 million,
reflecting the previously communicated situation with reduced capacity and
increasingly fierce competition for IT expert consultants.

"Webstep enjoys a strong market position, and the long-term growth drivers are
strong, but growth capacity is a continuous challenge these days. IT expertise
has become a scarce resource, and continuous investments in human capital is key
to increase our ability to recruit, develop and retain the best people", says
Arne Norheim, CEO of Webstep ASA.

EBITDA for the second quarter amounted to NOK 22.0 million, down 22.9 per cent
from the corresponding quarter of 2018, following the drop in Q2 revenues
explained above. EBITDA for the first half year was NOK 44.3 million, down by
15.5 per cent from the first half of 2018, mainly due to increased use of
subcontractors, one-off costs related to CEO recruitment and transition, and
expensed costs related to Internet of Things (IoT). The EBITDA margin was 13.5
per cent (16.3 per cent) in the quarter and 12.8 per cent (15.0 per cent) in the
first half year, reflecting the abovementioned situation.

Net profit for the second quarter was NOK 14.8 million, down 29.0 per cent
compared to same quarter last year. Net profit for the first half year was NOK
30.2 million down 21.5 per cent compared to the first half of 2018.

The financial position at 30 June is strong, with total equity of NOK 361.0
million (NOK 350.5 million), corresponding to an equity ratio of 64 per cent (65
per cent). Equity was affected by the payment of dividend of NOK 42.4 million
(NOK 39.5 million), NOK 1.60 per share (NOK 1.50 per share), in the second
quarter. Cash flow from operations in the second quarter amounted to negative
NOK 6.4 million (negative NOK 1.3 million). The negative figures are mainly
explained by calendar effects related to which weekday receivables are falling
due.

The market growth continues, with generally high demand for Webstep's core
digitalisation offering. Sales of New Services, such as IoT, analytics and
machine learning are also growing, partly as a result of the Group's strong
emphasis on sharing knowledge and expertise across the organisation. This is
strengthening the offering to existing and new clients in all Webstep locations.

Webstep expects long-term market growth, supported by the fact that both Webstep
and its partners have won some large, long term contracts and frame agreements
in 2019. Webstep enjoys a strong position in an attractive growth market and has
a robust order book. The high demand has driven an increase in hourly rates
compared to 2018. However, growth capacity is still a challenge, following the
already high utilisation and the continuously challenging conditions for
recruitment of IT experts. Further measures to re-establish growth capacity have
been implemented in the second quarter, hereunder new initiatives to retain
employees and strengthen recruitment capacity, leverage new geographic
expansions, pursue inorganic growth opportunities and continue strengthening the
partnerships with world-leading technology platforms. These initiatives are
expected to contribute to building a new and robust platform for future growth,
which supports the long-term ambition to exceed the average market levels for
growth and profitability. The focus on identifying further growth opportunities
will remain strong.

A strategic review process is ongoing and will be concluded during the fall,
followed by a strategic update to the capital market on 7 November 2019, in
connection with the announcement of the third quarter results.
Contact details for further information:

Liv Annike Kverneland, CFO

Cell: +47 911 51 110

Email : ir@webstep.com

Website :  (http://www.webstep.com)www.webstep.com
This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

Webstep ASA is a provider of consultancy services to the private and public
sector, with the IT expertise necessary to deliver the most demanding
digitalisation and IT services.The Webstep Group employs approximately 400
employees in Norway and Sweden. The company offers its services to more than 200
customers annually and has been recognised for its work environment.