Itera

Earnings Release • Oct 19, 2016

Corr: Good order inflows and positive growth

Corr: Good order inflows and positive growth

Oslo, 19th October 2016: Itera achieved revenue growth of 3

percent in the third quarter of 2016 relative to the same

period last year. This growth was achieved through its

nearshore activities, with a double-digit revenue growth, and

through the Norwegian consulting and product units. The

revenue generated by Itera's Danish activities and its IT

hosting activities in Norway decreased slightly.

The Group reports operating revenue of NOK 91.8 million (NOK

88.7 million) for the third quarter of 2016, which represents

growth of 3 percent. This revenue growth was largely achieved

through the Group's nearshore services, whereas sales of

hardware/software decreased significantly.

- We are satisfied with the development in those parts of the

businesses that deliver the strongest results. Going forward,

we will focus on bringing out more of the potential of the

other operations, says Arne Mjøs, CEO of Itera.

The Group's total operating costs were up 3 percent to NOK

85.5 million (NOK 82.4 million) in the third quarter of 2016.

The operating result before depreciation and amortisation

(EBITDA) for the third quarter of 2016 was a profit of NOK

11.0 million (a profit of NOK 11.1 million in Q3 2015), and

the operating result (EBIT) before non-recurring items was a

profit of NOK 6.3 million (a profit of NOK 6.4 million in Q3

2015). The EBIT margin was 6.3 percent as compared to 7.2

percent in the same period last year.

Cash flow from operational activities was NOK 4.4 million

(NOK 5.3 million) in the third quarter of 2016. This is NOK

6.7 million less than EBITDA, which is due primarily to a

reduction in other current liabilities.

- Itera is finding the market position that it has created in

collaboration with its customers to be strong, and believes

that the Group has the right knowledge, experience and

approach to further strengthen its position: insight into

advanced technology, a good understanding of business, and a

strong focus on creating good user experiences. The Group's

range of services in communication and technology are more

relevant than ever before, says Arne Mjøs, CEO of Itera.

During the third quarter Itera was recognised as one of the

top-25 most innovative organisations in Norway across all

sectors, along with other strong brands such as DNV GL,

Norwegian, Snøhetta, Telenor, Statoil and Schibsted.

The revenue from Itera's 30 largest customers grew by 9

percent in the third quarter of 2016 and accounted for 75

percent of the Group's operating revenue, up from 69 percent

in the third quarter of 2015.

The proportion of Itera's capacity that is located nearshore

(its nearshore ratio) was 36 percent (33 percent) at the end

of the third quarter. The Group has development centres in

Slovakia and Ukraine and has a strategic target of achieving

a nearshore ratio of 50% in the future.

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 about

400 employees across the Nordics and in Ukraine and Slovakia.

Itera is listed on Oslo Stock Exchange under the ticker ITE.