Itera

Earnings Release • Aug 27, 2015

Improvements in profitability

Improvements in profitability

Oslo, 27. August 2015: The revenue generated by Itera's

consulting services in Norway and Sweden grew again in the

second quarter, while the equivalent services in Sweden

did not see growth. The company's IT hosting activities in

Norway returned to growth, and the restructuring that was

carried out has had the desired effect on profits.

The Group reports operating revenue of NOK 114.3 million

(114.8) for the second quarter of 2015 and of NOK 228.3

million (227.2) for the first six months of 2015.

The Group's operating costs totalled NOK 109.7 million

(113.6) in the second quarter of 2015 and NOK 220.8

million (223.6) in the first six months, representing

decreases of 4% and 1% respectively relative to the

equivalent periods in 2014.

The operating result before depreciation (EBITDA) for the

second quarter of 2015 was a profit of NOK 9.9 million (a

profit of NOK 6.6 million in Q2 2014), and for the first

six months of 2015 was a profit of NOK 17.6 million (a

profit of NOK 14.4 million in H1 2014).

The operating result before non-recurring items (EBIT) for

the second quarter of 2015 was a profit of NOK 4.7 million

(a profit of NOK 1.2 million in Q2 2014), and for the

first six months of 2015 was a profit of NOK 7.5 million

(a profit of NOK 3.6 million in H1 2014).

Itera's cash flow from operations in the second quarter of

2015 was NOK -6.6 million (13.0) and NOK -14.7 million

(2.4) in the first six months.

The revenue from Itera's 30 largest customers grew by

percent in the second quarter of 2015 and accounted for 67

percent of the Group's operating revenue, up from 64

percent in the second quarter of 2014.

Itera's consulting activities in Norway and Sweden

continued to achieve good profit performance with

significant improvements in profitability also seen this

quarter.

- We are very pleased that both the Norwegian and the

Danish consulting activities continued to achieve good

profit performance with significant improvements in

profitability also seen this quarter. However, weaker

figures were generated by Itera's consulting activities in

Sweden. Necessary measures have been defined, and we are

focused and targeted on improving this part of business,

says Arne Mjøs, CEO of Itera.

Central delivery agreements were signed with customers

such as Østfold Energi, Eurosko, KLP, Storebrand, the

Norwegian Directorate for Building Quality, Advokatfirmaet

Hjort, Selvaag, Gjensidige, If, Santander, NEMI

Forsikring, PRA Group, Aon and Eika Forsikring.

A contract that particularly stands out is Itera's new

agreement with Nets, which in the second quarter selected

Itera as its preferred partner for digital development,

including for communication services. The agreement

applies to all the countries in which Nets is represented:

Denmark, Norway, Sweden, Finland and Estonia.

- We experience that we are in the process of increasing

the brand awareness of Itera as a communications and

technology company in the Nordic market. The fact that

Nets chose us as their partner could serve as an

illustration, says Arne Mjøs, CEO of Itera.

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

2015 was 423 as compared to 465 at the end of June 2014.

This represents a decrease of approximately 9 percent.

Some of the reduction is due to an unprofitable department

in Itera's IT hosting activities in Norway being closed

down, and the nearshore ratio has also been somewhat

lower.

For further information:

Arne Mjøs, CEO

+47 905 23 172

arne.mjos@itera.no