Itera

Earnings Release • Oct 29, 2015

Continued improvements in profitability

Continued improvements in profitability

Oslo, 29. october 2015: As in the first two quarters

of this year, good improvements were seen in the third

quarter in the profitability of Itera's consulting

activities in Norway and Denmark. Weaker figures were

generated by Itera's consulting activities in Sweden.

The Norwegian operating activities shows growth and a

solid operating margin due to long-term and targeted

efforts.

The Group reports operating revenue of NOK 94.0

million (96.0) for the third quarter of 2015.

The Group's operating costs totalled NOK 89.5 million

(93.4) in the third quarter of 2015, representing a

decrease of 4% relative to the same period last year.

The operating result before depreciation (EBITDA) for

the third quarter of 2015 was a profit of NOK 9.3

million (a profit of NOK 7.7 million in Q3 2014).

The operating result before non-recurring items (EBIT)

was a profit of NOK 4.5 million (a profit of NOK 2.6

million in Q3 2014).

Itera's cash flow from operations in the third quarter

of 2015 was NOK 5.3 million (-3.2). There were changes

to working capital which, in conjunction with the

improvement in profit, led to an improvement in cash

flow from operations relative to the third quarter of

The revenue from Itera's 30 largest customers grew by

2% in the third quarter of 2015 and accounted for 70%

of the Group's operating revenue, up from 68% in the

third quarter of 2014.

- We have had a long-term and determined focus over a

long period in order to improve profitability, and are

satisfied to see results. We have well-defined plans

ahead to ensure that the positive trend remains stable

where it today is good, and to turn around the trend

in Sweden, says Arne Mjøs, CEO of Itera.

Agreements were signed with customers such as

Storebrand Livsforsikring, Eika, KLP, Santander, the

Norwegian Defence Estates Agency, PRA Group,

Norconsult, Lovisenberg Diakonale Sykehus, If, the

Norwegian Agriculture Agency, OBOS Forsikring and VPS.

A high proportion of these agreements are extensions

or expansions of existing commitments. This is in line

with the company's strategy, which is to develop long-

lasting relationships with customers that have the

potential to purchase the whole range of services

offered by Itera.

The Group's headcount at the end of the third quarter

of 2015 was 401 as compared to 429 at the end of the

same quarter in 2014. This represents a decrease of

12%. Some of the reduction is due to the closure of an

unprofitable department in Itera's IT hosting

activities in Norway as previously announced, and the

nearshore ratio has also been somewhat lower.

The proportion of Itera's capacity that is located

nearshore (its nearshore ratio) was 31% (33%) at the

end of the third quarter. The Group's development

centre in Bratislava provides flexibility with regard

to meeting the target of achieving a nearshore ratio

of 50% in the future.

For information:

Arne Mjøs, CEO

+47 905 23 172

arne.mjos@itera.no

Bent Hammer, CFO

+47 982 15 497

bent.hammer@itera.no