Oslo, 25th October 2022: Itera continued its strong growth trajectory in the
third quarter with an increase of 23% in operating revenue and an operating
margin of 5.9%. The company is investing in its new offices in Central Europe
and has hired a new manager to expand in the Swedish market.
Itera reports operating revenue of NOK 170.9 million (NOK 138.9 million) for the
third quarter of 2022, which represents a growth of 23%. Operating revenue for
the first nine months was NOK 530.4 million (NOK 434.2 million). The annualised
growth rate the last 24 months has been 20% with an average EBIT margin of
11.7%.
"We are very pleased with the growth of the company in the third quarter, which
we are experiencing at the same time as we are investing in new locations and
markets, employees and cloud services", says Arne Mjøs, CEO of Itera.
To speed up digitalisation in various industries, Itera has invested more than
NOK 30 million in a digitalisation factory for data-driven businesses, in the
cloud. The Digital Factory at Scale encompasses all our services, from digital
strategy, customer experiences and cloud transformation journeys to cloud
migration and modernisation, data-driven development, use of artificial
intelligence and management of the entire product lifecycle.
"It's all about doing more for less. While industries and markets are being
affected differently by the backdrop of the current macroeconomic environment,
there is one common theme: all strategies lead to technology, particularly
cloud, data, AI and security - all fundamental elements of our Digital Factory
at Scale", says Mjøs.
Itera's headcount at the end of the third quarter of 2022 was 701 as compared to
589 at the end of the third quarter of 2021. This represents an increase of 122
employees (19%) over the last 12 months, of which 40 during the third quarter of
2022.
Total operating expenses in the third quarter of 2022 were 29% higher at NOK
160.7 million (NOK 124.6 million). This includes around NOK 5 million in
start-up costs for recruitment, offices, administration, and onboarding of new
employees at the company's three new locations. For the first nine months,
Itera's operating expenses was NOK 472.6 million (NOK 375.3 million).
The operating result before depreciation and amortisation (EBITDA) for the third
quarter of 2022 was a profit of NOK 18.7 million (NOK 20.6 million), giving an
EBITDA margin of 10.9% (14.8%). For the first nine months EBITDA was NOK 80.8
million (NOK 77.3 million) with an EBITDA margin of 15.3% (17.8%).
The operating result (EBIT) for the third quarter was a profit of NOK 10.2
million (NOK 14.3 million), giving an EBIT margin of 5.9% (10.3%). For the first
nine months EBIT was NOK 57.8 million (NOK 58.9 million) with an EBIT margin of
10.9% (13.6%).
Itera has appointed Joachim von Ekensteen as the new CEO in Sweden to strengthen
their efforts there. He has extensive experience from distributed delivery
models and has, among other things, been responsible for building up Sopra
Steria's delivery capacity in Central Europe.
"I see exciting partnerships, solid services and a genuine desire to make a
difference. Itera is what I would call a 'people company' where people grow
together with the customer and the company," says Joachim von Ekensteen, CEO of
Itera Sweden.
Over the last 3-4 months, Itera has established three offices in accordance with
their growth plan. These new locations are Brno in the Czech Republic, Zilina in
Slovakia and Kraków in Poland. Their office in Kraków will serve both local new
hires and their colleagues from Ukraine that have relocated to the Kraków area.
"We have built a strong ONE Itera culture based on organic growth, rather than
acquiring companies. According to McKinsey, companies that grow organically
experience a higher shareholder return than those that grow based on
acquisitions. In addition, we are customer-centric, and part of our success lies
in being close to the customer and understanding their needs. Most of our top
customers have been with us for five years or more", says Arne Mjøs.
The revenue from Itera's 30 largest customers accounted for 83% of its operating
revenue, which is six percentage points higher than in the third quarter of
2021. New customers accounted for 9% of revenue.
For more information:
Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497
About Itera - specialists in creating sustainable digital business
Itera creates sustainable digital business for innovative organisations 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 six years, Itera has been recognised as 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
more than 700 employees, working from offices in the Nordics and Central and
Eastern Europe, and deliver digital solutions to around 20 countries worldwide.
Itera is a listed company on the Oslo Stock Exchange under the ticker ITERA.