Itera

Earnings Release • Feb 17, 2022

Growth continues with solid profitability

Growth continues with solid profitability

Oslo, 17 February 2022: As companies embrace digital transformation, customers turn to Itera as their trusted partner, as reflected in our strong organic growth of 17% in the fourth quarter and 19% for the full year in our core digital business. We also improved the profitability of the core digital business and delivered an EBIT margin of 11.1 % in the fourth quarter and 12.9% for the entire year.

Itera reports operating revenue of NOK 158.7 million (NOK 135.6 million) for its core digital business for the fourth quarter of 2021, which represents growth of 17%. In total in 2021, Itera’s operating revenue was NOK 593.0 million (NOK 497.6 million), which represents growth of 19%.

Itera's headcount for its core digital business at the end of the fourth quarter of 2021 was 617 as compared to 504 at the end of the fourth quarter of 2020. This represents an increase of 113 employees (22%) over the last 12 months.

- Despite great competition to hire the best IT heads, we have once again managed to grow the number of employees in the last quarter. With a 22% increase in employees over the last 12 months, well-functioning and efficient onboarding processes are important, both in digital and physical contexts. At Itera, we aim to let all new employees become well acquainted with both the corporate culture and the group's strategy, regardless of whether they are in our offices, out at the customer's or at home offices, says Arne Mjøs, CEO of Itera.

Total operating expenses in the fourth quarter of 2021 were 16% higher at NOK 141.1 million (NOK 122.0 million), while for the year as a whole they were up 18% to 516.5 million.

The operating result before depreciation and amortisation (EBITDA) for the core digital business for the fourth quarter of 2021 was a profit of NOK 24.5 million (NOK 21.3 million), giving an EBITDA margin of 15.5% (15.7%). For the year as a whole EBITDA was NOK 101.5 million (NOK 90.3 million) with an EBITDA margin of 17.1% (18.1%).

The operating result (EBIT) for the fourth quarter was a profit of NOK 18.3 million (NOK 13.6 million), giving an EBIT margin of 11.5% (10.0%). For the year as a whole EBIT was NOK 77.1 million (NOK 59.2 million) with an EBIT margin of 13.0% (11.9%).

As previously reported, Itera is in the process of discontinuing its own data centre operations. The Danish data centre was closed down in the beginning of 2022 and the Norwegian will follow shortly. Itera’s total operating revenue including the data centre operations was NOK 167.8 million (NOK 167.3 million) in the fourth quarter of 2021, with an EBIT of NOK 13.6 million (NOK 13.0 million). Itera's total headcount at the end of the fourth quarter of 2021 was 648 as compared to 569 at the end of the fourth quarter of 2020.

- Despite growing tensions in and around Ukraine, we have a normal operation and activity level in our office in Kyiv which is located more than 600 kilometres from the centre of the unrest in the country's eastern regions. We have updated our business continuity plans for personnel and operations in case of further escalations. Indeed, our distributed delivery model and high mobility of consultants enable us to work from anywhere as needed, including home offices or other Itera offices in western Ukraine, Slovakia or the Nordics, says Arne Mjøs, CEO of Itera.

The revenue from Itera's 30 largest customers accounted for 76% of its operating revenue, which is four percentage points lower compared to the fourth quarter of 2020. New customers accounted for 13% of revenue.  

At its meeting on 16 February 2021, the Board of Directors passed a resolution to propose an ordinary dividend of NOK 0.20 per share at the Annual General Meeting on 24 May 2022. It will also ask for its authorisation to approve possible additional dividends to be renewed.

For more information:

Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172

Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497

About Itera – specialists in creating sustainable digital business

Itera creates sustainable digital business for innovative businesses in data-intensive market segments. The group delivers solutions and services in interdisciplinary teams within technology, strategic consulting, and design, and works in a distributed delivery model, with teams across national borders. For the past five years, Itera has been named one of Norway's 25 most innovative companies and its distributed delivery model was recognised as best in the world by the Global Sourcing Association (GSA) in 2018. The group has around 660 employees, operations in Norway, Denmark, Sweden, Iceland, Slovakia and Ukraine and is listed on the Oslo Stock Exchange under the ticker ITERA.