EVRY reports NOK 151 million in EBITA in the first quarter of 2012
(Thomson Reuters ONE) -
(Oslo, 7 May 2012) EVRY, formerly EDB ErgoGroup, reports consolidated operating
profit before intangible asset amortisation (EBITA) for the first quarter of
2012 of NOK 151 million. After adjusting for pension effects, this represents an
increase of 17% from the first quarter of last year. Pre-tax profit was NOK 148
million as compared to pro forma NOK 82 million in the same quarter of 2011.
"It is very pleasing that EVRY has increased its organic growth in the Norwegian
market for the second quarter in a row, and that our underlying profit margin
has improved for the third quarter in a row. In addition, our strong growth in
Sweden continues, and we are achieving sound organic growth in Solutions and
Consulting driven by good demand from a number of sectors, including the public
sector and banking and finance. In seasonal terms, the first quarter is our
weakest quarter, and although the trend is positive we still have more to
achieve", comments Terje Mjøs, CEO of EVRY.
Key figures and main features of the first quarter of 2012
* Operating revenue of NOK 3,328 million as compared to pro forma NOK 3,221
million in the first quarter of 2011. This represents organic growth of 4%.
* EBITA of NOK 151 million. After adjusting for pension effects, this
represents an increase of 17%. The accounts for the first quarter of 2011
included a positive pension effect of NOK 28 million relating to an
actuarial gain, and there were no such effects in the first quarter of 2012.
* Cash flow from operations of NOK -120 million as compared to pro forma NOK
-283 million in the first quarter of 2011.
* Synergy program well underway, with a run rate of NOK 280 million.
* Continuing strong performance in Sweden, with organic growth of 11%. EVRY
reports revenue growth for all segments, with particularly strong growth for
Consulting and IT Operations in the first quarter of 11% and 16%
respectively.
* New contracts totalling NOK 2.6 billion were signed in the first quarter.
EVRY started the second quarter with an order backlog of NOK 15.5 billion.
First quarter 2012 figures for EVRY's business areas
IT Operations: The IT Operations business area reported operating revenue of NOK
1,449 million for the first quarter of 2012 as compared to NOK 1,495 million in
the first quarter of 2011. EBITA was NOK 30 million in the first quarter of
2012 as compared to NOK 50 million in the first quarter of 2011.
Solutions: The Solutions business area reported operating revenue of NOK 1,126
million as compared to pro forma NOK 1,035 million in the first quarter of
2011. EBITA was NOK 88 million in the first quarter of 2012 as compared to pro
forma NOK 64 million in the first quarter of 2011.
Consulting: The Consulting business area reported operating revenue of NOK 994
million for the first quarter of 2012 as compared to NOK 930 million in the
first quarter of 2011. EBITA was NOK 83 million as compared to NOK 66 million in
the first quarter of 2011.
Performance in Sweden in the first quarter of 2012
Revenue in Sweden (including Finland) was NOK 919 million, equivalent to organic
growth of 11% compared to the first quarter of 2011. All segments of the Swedish
activities showed organic growth in the first quarter of 2011. IT Operations
achieved organic growth of 16%, with 2% growth for Solutions and 11% growth for
Consulting. EBITA was NOK 70 million as compared to NOK 66 million in the first
quarter of 2011.
Future prospects
The IT services market in Norway and Sweden showed a positive trend in 2011, and
growth continued at a cautious pace in the first quarter of 2012.
The economic outlook in Norway is on the one hand characterised by high levels
of business investment, driven in particular by activity in oil-related sectors.
On the other hand, Norwegian exporters are suffering from weak conditions in
international markets, combined with a high cost level in Norway. The Business
Tendency Survey published by Statistics Norway indicates that growth in 2012
will be in line with 2011, with GDP growth for mainland Norway of 2.7%. The
Confidence Indicator published by the Swedish National Institute of Economic
Research is now clearly below its historical average, and indicates that growth
prospects for the Swedish economy are weaker than normal. However, in its latest
report the Swedish Central Bank identifies positive signs for Swedish exporters,
and expects GDP growth to turn positive following the downturn reported for the
fourth quarter of 2011. Even so, GDP growth for 2012 is expected to be weak at
0.4% compared to 3.9% for 2011. It remains to be seen whether the uncertain
outlook for Norway and Sweden will spill over into slower growth in the main
markets for IT services. The downturn in 2008/2009 had a delayed effect on the
IT market, and the resultant slowdown in the IT services market was much less
pronounced than the drop in economic growth in general. This tends to suggest
that in the uncertain period we are currently experiencing the level of
investment in IT may be maintained to a greater extent than in the previous
downturn. This may be the case because IT has become an essential tool not only
for reducing costs but also for maintaining growth and market position. However,
the effect of the current uncertainty will undoubtedly have a differing effect
on the various segments of the market, and the SMB segment with its high
proportion of export-based businesses is expected to show the sharpest cutback
in IT investment.
The continuing high level of activity is reflected in generally good demand for
consulting services and a good supply of potential operating service
assignments. EVRY is well positioned in its main markets to meet this demand,
and the company expects to achieve moderate growth in 2012.
Given current market conditions, EVRY has a cautiously optimistic view of the
outlook for the Swedish market, and expects continuing good demand from the
public sector. The banking and finance sector has implemented measures to reduce
its IT costs, and this is expected in the short term to lead to lower demand for
IT consulting services. On a somewhat longer-term view, outsourcing of services
is expected to show growth, creating new opportunities in the operating services
segment. In the Norwegian market, EVRY anticipates good opportunities thanks to
the generally high level of activity in both the private sector and the public
sector. The SMB segment is expected to continue to show good growth, but with
significant variation within the segment depending on the extent of individual
companies' exposure to international market conditions.
Contact names
Terje Mjøs, CEO, EVRY. Tel: + 47 06500
Eli Giske, CFO, EVRY. Tel: +47 908 44 189
Geir Remman, SVP Corporate Communications, EVRY. Tel: + 47 970 55 017
About EVRY
EVRY is one of the leading IT companies in the Nordic countries, with a strong
local and regional presence in 50 Nordic towns and cities. Through its
knowledge, solutions and technology, EVRY contributes to the development of the
information society of the future, and so creates value for the benefit of its
customers and for society as a whole. EVRY combines in-depth industry knowledge
and technological expertise with a local delivery model and international
strength.
EVRY has some 10,000 employees, and the company is committed to demonstrating
that Nordic customers are best served by a supplier that understands Nordic
business from the inside. EVRY reports annual turnover approaching NOK 13
billion. The company is listed on the Oslo Stock Exchange and operates from
headquarters in Oslo, with major activities in both the Norwegian and Swedish
markets.
EVRY is the result of the merger in 2010 of Norway's two leading IT companies,
EDB Business Partner and ErgoGroup.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Presentation of 1st quarter 2012:
http://hugin.info/194/R/1609209/510965.pdf
1st quarter 2012:
http://hugin.info/194/R/1609209/510964.pdf
This announcement is distributed by Thomson Reuters on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: EVRY via Thomson Reuters ONE
[HUG#1609209]
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Datum: 07.05.2012 - 01:41 Uhr
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