Itera

Earnings Release • Feb 26, 2014

Strong development and profitable growth

Strong development and profitable growth

Oslo, 26 February 2014:

The positive trend from the last quarters continues

in the fourth quarter. The Group delivers good,

profitable growth. The income-related predictability

continues due to stronger customer relationships and

growth in both size and duration of the customer

engagements.

Operating revenue amounted to MNOK 125.1 (113.3) in

the fourth quarter and MNOK 465.2 (438.21) for the

full year, corresponding to a growth of 10 percent

for the fourth quarter and 6 percent for the year as

a whole.

The operating expenses amounted to MNOK 117.4 (111.6)

in the fourth quarter and MNOK 442.7 (431.0) for the

full year. This represents an increase of 5 and 3

percent respectively.

Operating profit before depreciation (EBITDA)

increased by 93 percent to MNOK 13.2 (6.8) in the

fourth quarter, corresponding to a margin of 10.6

(6.0) percent. EBITDA for the full year increased by

70 percent to MNOK 43.9 (25.9) corresponding to a

margin of 9.4 (5.9) percent.

Operating profit (EBIT) increased by MNOK 5.9 to MNOK

7.6 (1.7) in the fourth quarter, corresponding to a

margin of 6.1 (1.5) percent. EBIT for the whole year

increased by MNOK 15.3 to 22.5 (7.3), corresponding

to a margin of 4.8 (1.7) percent.

The cash flow from operations amounted to MNOK 35.8

(17.3) in the fourth quarter and MNOK 57.7 (22.5) for

the year as a whole. This confirms the solid

improvement of the operational performance compared

to last year.

The 10 largest customers accounted for 42 percent of

the Group's revenue in the fourth quarter, up from 37

percent in the corresponding quarter last year. The

growth of the 30 largest customers was 42 percent

compared to the corresponding period last year and 38

percent for the full year compared to 2012.

Digitalization of most sectors and industries is a

market megatrend. This causes radical shifts in

buying patterns of communication and technology

services. Itera is experiencing that we are perfectly

well positioned, and we see exciting opportunities

for the years to come, says Arne Mjøs, CEO of Itera.

By the end of the fourth quarter the number of

employees was 460, compared to 428 in the fourth

quarter last year, corresponding to an increase of 7

percent. Implementation of projects in teams across

borders works very well and is a mature model both

among employees and customers.

Arne Mjøs, CEO

+47 905 23 172

arne.mjos@itera.no

Torunn Havre, CFO

+ 47 909 43 403

torunn.havre@itera.no

Ane Gjennestad, CCO

+47 90 55 60 77

ane.gjennestad@itera.no