Itera

Earnings Release • Aug 22, 2017

Strong growth in capacity to meet market demand

Strong growth in capacity to meet market demand

Oslo, 22 August 2017: The Group has had strong focus on recruitment

in the first half year, which has shown good effects. The Group's

headcount at the end of the second quarter of 2017 was 430 as

compared to 370 at the end of the second quarter of 2016.

The Group reports operating revenue of NOK 113.5 million (NOK 110.0

million) for the second quarter of 2017 and of NOK 232.1 million

(NOK 215.7 million) for the first six months of 2017. These figures

represent revenue growth of 3% and 8%, respectively.

The Group's total operating expenses for the second quarter of 2017

were 6% higher at NOK 105.7 million (NOK 99.3 million), while for

the first six months they were up 7% to NOK 199.5 million.

The operating result before depreciation and amortisation (EBITDA)

for the second quarter of 2017 was a profit of NOK 12.9 million (NOK

15.6 million), while the operating result (EBIT) was a profit of NOK

7.8 million (NOK 10.7 million). The quarterly result was negatively

impacted by 4 fewer working days than the corresponding quarter last

year. The EBIT margin was 6.8% for the second quarter of 2017 as

compared to 9.7% in the second quarter of 2016, while for the first

six months it was 8.2% (6.7% in H1 2016).

Cash flow from operating activities was NOK 5.5 million (NOK 10.7

million) in the second quarter of 2017 and NOK 4.7 million (NOK 7.2

million) in the first six months of 2017.

- Like in the first quarter, we have focused strongly on recruitment

in the second quarter. The activity level is high both in the

Nordics as well as at our nearshore centers in Kiev and Bratislava.

There is strong demand for Itera's services both in emerging areas

of technology such as machine learning, artificial intelligence and

robotics, but also within traditional areas such as developing and

hosting applications. Hence, we are pleased that we have been able

to increase our capacity by 16 percent compared to the corresponding

quarter last year, making us well poised for further growth, says

Arne Mjøs, CEO of Itera.

The revenue from Itera's 30 largest customers grew by 13% in the

second quarter of 2017 and accounted for 76% of the Group's

operating revenue, up from 72% in the second quarter of 2016.

The proportion of Itera's capacity that is located nearshore was 39%

(36%) at the end of the second quarter. The Group has development

centres in Slovakia and Ukraine and has a strategic target of

achieving a nearshore ratio of 50%.

For more 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 - great experiences for the customer's customers

Itera is a communication and technology company that delivers

services in the strategy and consulting, design and development, and

operations and management areas. Its customers are Nordic

organisations that aim to deliver great

user experiences to their customers, and that see the instrumental

contribution that innovation, efficient communication and good

technology use can make to achieving their goals. Itera is

headquartered in Oslo, and has more than

400 employees across the Nordics and in Ukraine and Slovakia. Itera

is listed on Oslo Stock Exchange under the ticker ITE.