EDB ErgoGroup reports EBITA of NOK 166 million for the second quarter
(Thomson Reuters ONE) -
(Oslo, 13 July 2011) EDB ErgoGroup reports operating revenue for the second
quarter of 2011 of NOK 3,202 million, as compared to pro forma NOK 3,155 million
in the same quarter of last year. Operating profit before intangible asset
amortisation (EBITA) was NOK 166 million, as compared to pro forma NOK 156
million for the second quarter of 2010. Pre-tax profit (EBT) was NOK 72 million,
as compared to pro forma NOK 5 million for the same quarter of last year.
"EDB ErgoGroup reports increased revenue and achieved organic growth of 7% in
Sweden in the second quarter. We are putting in a lot of effort every day on
realising the synergy benefits following the merger and on other measures to
improve the company's underlying quality and profitability. This work will
continue to have the highest priority in the time ahead", comments Terje Mjøs,
CEO of EDB ErgoGroup.
EDB ErgoGroup established an extensive synergy program for the merger of EDB and
ErgoGroup. The company has identified annual synergy gains of NOK 325 million,
which will be realised over a period of 18 months starting from the first
quarter of 2011. Work on the synergy program is proceeding well, and EDB
ErgoGroup now reports annual savings (run-rate) of NOK 128 million, as compared
to NOK 60 million at the end of the first quarter.
"In the second quarter we launched the next-generation of internet banking for
mobile phones (Mobilbank 2.0) and new card services for banks, and we are
experiencing strong demand for mobile solutions in Sweden. At the same time, we
have started deliveries of election solutions to local authorities ready for the
local elections this autumn. Customers are showing strong interest in the new
services we are developing, and through these developments and new contracts
totalling NOK 2.7 billion in the second quarter, we have laid a strong
foundation for continuing growth in the second half of the year", says Terje
Mjøs.
Key figures and main features of the second quarter of 2011
* Operating revenue of NOK 3,202 million as compared to pro forma NOK 3,155
million in the second quarter of 2010.
* EBITA of NOK 166 million (including a positive pension effect of NOK 28
million) as compared to pro forma NOK 156 million in the same quarter last
year.
* EBITA margin improved from 4.9% to 5.2%.
* Cash flow from operations of NOK 63 million as compared to pro forma NOK
186 million in the second quarter of 2010.
* Costs associated with the DigOff development project for the public sector
were reduced by NOK 9 million relative to the first quarter of 2011.
* Organic revenue growth of 7% in Sweden. EDB ErgoGroup is winning market
share through growth in all business areas in Sweden. In Norway, Solutions
reports continuing revenue growth, and the downward trend seen for IT
Operations has reversed. IT Operations reported organic growth in the second
quarter of 2011, making this the first quarter with organic growth since
2007.
* A range of short-term and long-term measures have been implemented following
the delivery problems affecting card services that occurred at Easter. These
measures are being carried out in close dialogue with the company's bank
customers and Finanstilsynet (the Financial Supervisory Authority of
Norway).
* New contractually-agreed orders totalling NOK 2.7 billion were signed in the
second quarter. In addition, Consulting signed up sizeable framework
agreements that are not included in the group's order backlog. The total
order backlog at the close of the second quarter of 2011 was NOK 17.1
billion.
Key figures for the first six months of 2011
* Operating revenue for the first six months of NOK 6,436 million, equivalent
to organic growth of 2%.
* EBITA for the first six months of 2011 was NOK 323 million (including a
positive pension effect of NOK 56 million) as compared to pro forma NOK 328
million for the first six months of 2010.
* EBITA margin improved to 5.2% from 4.4% in the same period of 2010.
* New customer agreements were signed in the first six months of 2011
representing total contract value of NOK 5.8 billion, of which the contract
with Bankernas Automatbolag AB (BAB) accounted for NOK 0.8 billion.
* Sales to the SME segment in the first six months showed organic growth of
8% relative to the first six months of 2010.
Second quarter 2011 figures for the business areas
IT Operations: The IT Operations business area reported operating revenues of
NOK 1,517 million for the second quarter of 2011 as compared to pro forma NOK
1,484 million in the second quarter of 2010. EBITA was NOK 76 million as
compared to pro forma NOK 77 million in the second quarter of 2010.
Solutions: The Solutions business area reported operating revenues of NOK 1,060
million as compared to pro forma NOK 982 million in the second quarter of 2010.
EBITA was NOK 80 million in the second quarter of 2011 as compared to pro forma
NOK 59 million in the second quarter of 2010.
Consulting: The Consulting business area reported operating revenues of NOK 923
million for the second quarter of 2011 as compared to pro forma NOK 953 million
in the second quarter of 2010. EBITA was NOK 40 million as compared to pro forma
NOK 52 million in the second quarter of 2010.
Performance in Sweden in the second quarter of 2011
Revenue in Sweden in the second quarter of 2011, including some revenue from
Finland, was NOK 895 million, equivalent to organic growth of 7% from the second
quarter of 2010. All segments of the Swedish activities reported organic revenue
growth in the second quarter of 2011. IT Operations reported organic growth of
6%, Solutions 13% and Consulting 4%. EBITA was NOK 57 million compared to pro
forma NOK 50 million in the second quarter of 2010.
Company outlook
The IT services market in Norway and Sweden showed some improvement in the first
six months of 2011 in line with general economic conditions. The market research
companies IDC and Gartner expect to see moderate growth in the IT services
market in 2011.
EDB ErgoGroup also expects to see market growth in 2011, especially in the
public sector, bank and finance, and SME segments of the market and in the
consulting area.
The group's revenue from the large customer segment of the outsourcing market in
Norway is currently affected by contractually-agreed price reductions and a
shortage of new contracts in the market. Part of the resulting revenue shortfall
is being offset through sales of additional services and through growth in the
large customer segment of the Swedish market, as well as by sound growth in
outsourcing for the SME segment of the market. The company has previously
announced the loss of customer contracts in the large customer segment of the
Norwegian market with effect from 1 July 2011 that represent annual revenue in
the order of NOK 200 million. As a result of the continuance of some aspects of
deliveries to Norsk Hydro, the loss of revenue will be reduced by NOK 50 million
in the second half of 2011.
The Board will focus on ensuring that the company carries out a successful
integration as a result of the merger between the former EDB and ErgoGroup
companies that properly takes into account the interests of its customers and
employees. The Board is committed to ensuring that the company strengthens its
profitability by achieving the targets the company has set for synergy benefits.
Contact names:
Terje Mjøs, CEO, EDB ErgoGroup. Tel: + 47 06500
Eli Giske, CFO, EDB ErgoGroup. Tel: +47 908 44 189
Geir Remman, SVP Corporate Communications, EDB ErgoGroup. Tel: + 47 970 55 017
About EDB ErgoGroup
EDB ErgoGroup ASA is one of the leading Nordic IT companies, with some 10,000
employees and annual turnover approaching NOK 13 billion. The company is listed
on the Oslo Stock Exchange and operates from headquarters in Oslo with major
activities in both the Norwegian and Swedish markets. In all, the company
operates from 135 offices in 16 countries around the world.
This information is subject to the disclosure requirements stipulated in §5-12
of the Norwegian Securities Trading Act.
Presentation of 2nd quarter 2011:
http://hugin.info/194/R/1530585/465732.pdf
2 quarter 2011:
http://hugin.info/194/R/1530585/465733.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: EDB ErgoGroup ASA via Thomson Reuters ONE
[HUG#1530585]
Unternehmensinformation / Kurzprofil:
Datum: 13.07.2011 - 07:45 Uhr
Sprache: Deutsch
News-ID 56350
Anzahl Zeichen: 9805
contact information:
Town:
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Kategorie:
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