EDB reports improvement in EBITA margin in the first quarter of 2010
(Thomson Reuters ONE) -
(Oslo, 20 April 2010) EDB Business Partner reports revenue of NOK 1,824 million
in the first quarter of 2010, as compared to NOK 1,936 million in the first
quarter of 2009. The group's operating profit before intangible asset
amortisation (EBITA) was NOK 134 million, as compared to NOK 135 million for the
first quarter in 2009. The group's EBITA margin was 7.4 percent, as compared to
NOK 7.0 percent in the same quarter of 2009.
"Conditions in the IT services market remained challenging in the first quarter.
However, we are seeing some signs of improvement in the market, and the decline
in revenue has slowed since the end of 2009. EDB is now seeing growth in revenue
in several areas, but we are still affected by lower demand from industrial
customers in the Nordic countries. It remains our view that the market will be
stronger in the second half of 2010 than in the first half of the year. It is
very pleasing to report that EDB has strengthened its EBITA margin this quarter,
but we will nonetheless continue with our focus on reducing costs in order to
strengthen our profitability", comments Acting CEO John-Arne Haugerud.
Successful launch of "One EDB"
Based on feedback from customers and its own market research, EDB started work
in 2009 on a program to develop "One EDB". The results of this program were
launched at the end of the first quarter of 2010. The main features include:
* Establishing EDB Consulting Group - a unified and powerful commitment to the
consulting market
* Co-ordinated and revitalised focus on the card services area in the Bank &
Finance vertical of the Solutions business area
* Simplified legal and organisational structure for the group
* Steps to stimulate organic growth and realise further synergy benefits
* A new corporate logo and brand image to support the changes
"We are hearing positive feedback from EDB's customers on our launch of "One
EDB" and our new brand. We are strengthening our focus on innovation and
collaboration with our partners in order to create new growth", explains
John-Arne Haugerud.
Recent developments include EDB being selected by Microsoft as a "Premium launch
partner" in Norway for the global launch of SharePoint 2010 and Office 2010. EDB
announces today that it is the first IT company to offer banking applications
for the iPad. This is a further development of the company's iPhone
applications, launched in February 2010.
Key figures and main features of the first quarter of 2010
* Operating revenue NOK 1,824 million (NOK 1,936 million)
* EBITA margin improved from 7.0 percent to 7.4 percent
* Cash from operations negative at NOK 182 million (positive NOK 19 million)
* CAPEX NOK 37 million (NOK 39 million)
* New contracts: NOK 1.3 billion (NOK 5.0 billion)
Results from the business areas for the first quarter of 2010
IT Operations: The business area reports revenue of NOK 1,076 million for the
first quarter of 2010 as compared to proforma NOK 1,102 million for the same
quarter in 2009. EBITA for the quarter was NOK 85 million, as compared to
proforma NOK 74 million in the first quarter of 2009.
Solutions: The business area reports revenue of NOK 403 million for the first
quarter of 2010 as compared to NOK 374 million for the same quarter in 2009.
EBITA for the quarter was NOK 49 million, as compared to NOK 48 million in the
first quarter of 2009.
Consulting: The business area reports revenue of NOK 452 million for the first
quarter of 2010 as compared to proforma NOK 522 million for the same quarter in
2009. EBITA for the quarter was NOK 29 million, as compared to NOK 38 million in
the first quarter of 2009.
Future prospect
The Nordic IT services market showed a marked decline in 2009 due to reduced
demand, resulting in pressure on prices. However, some areas of the IT solutions
market showed growth, and EDB strengthened its position in sectors including
bank and finance.
At the start of 2010, there is still reluctance with respect to investments, and
downward pressure on prices for some areas of services. EDB is experiencing
increased demand in service areas where standardisation of IT infrastructure and
automation of work processes is part of cost saving programs. This is reflected
by lower demand for development projects, and this has a negative effect on
EDB's revenue.
The market research companies IDC and Gartner are expecting an improving trend
in the IT services market during 2010, with the prospect of growth in the second
half of the year.
Please see the attached first quarter report for more detailed financial
information
Any enquiries may be addressed to:
John-Arne Haugerud, Acting CEO. Tel: + 47 22 77 21 01
Kristian Kuvaas Johansen, EVP and CFO. Tel: + 47 476 03 334
Geir Remman, EVP, Corporate Communications. Tel: + 47 970 55 017
About EDB
EDB Business Partner ASA (EDB) is a leading information technology (IT) services
provider in the Nordic region. We help customers unlock substantial value from
the entire IT services value chain, spanning solutions, consulting and
outsourcing. The company has some 6,000 employees and reported annual turnover
of around NOK 7.5 billion in 2009. EDB aims to be a close and attentive partner
that combines its local expertise and deep industry knowledge with substantial
international delivery capacity. EDB Business Partner ASA is listed on the Oslo
Stock Exchange with ticker code EDBASA.
Seewww.edb.com
This information is subject to the disclosure requirements of Section 5-12 of
the Norwegian Securities Trading Act.
This information is subject of the disclosure requirements acc. to §5-12 vphl
(Norwegian Securities Trading Act)
[HUG#1405495]
1st quarter 2010: http://hugin.info/194/R/1405495/359260.pdf
Presentation of 1st quarter 2010: http://hugin.info/194/R/1405495/359259.pdf
Unternehmensinformation / Kurzprofil:
Datum: 20.04.2010 - 08:02 Uhr
Sprache: Deutsch
News-ID 19303
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