Third quarter results and a new office in Stavanger Region

08 Nov 2024 07:15 CET

Oslo, 8th November 2024: Itera reports a 5% decline in revenue for the third
quarter, primarily due to a large customer downscale. Despite this challenge,
the company is beginning to see positive trends in demand and has during the
quarter secured several large framework agreements of 500 MNOK in estimated
value. Additionally, Itera is expanding its presence by opening a new office in
Stavanger through a small acquisition.

Itera reports operating revenue of NOK 184.2 million (NOK 193.9 million) for the
third quarter of 2024. For the first nine months of 2024 operating revenue was
NOK 636.9 million (NOK 649.5 million.

Revenue and profitability were negatively impacted by a global customer
replacing a significant portion of Itera’s activities with a global supplier,
leading to a sudden reduction in volume that affected approximately 35-40
consultants. The customer has, however, based on a comprehensive assessment,
decided to revert the assignments back to Itera and their successful distributed
delivery model with effect from November.

— I am very proud of our ability to win back this customer amid fierce global
competition. Furthermore, the customer intends to forge an even stronger
partnership with Itera for all its operations in the Nordic region, says Arne
Mjøs, CEO of Itera.


Total operating expenses in the third quarter of 2024 were 1% lower at NOK 184.1
million (NOK 185.2 million).
The operating result before depreciation and amortisation (EBITDA) for the third
quarter of 2024 was a profit of NOK 8.3 million (NOK 16.9 million), giving an
EBITDA margin of 4.5% (8.7%).

The operating result (EBIT) for the third quarter was a profit of NOK 0.1
million (NOK 8.7 million), giving an EBIT margin of 0.1% (4.5%).

During the third quarter, a new substantial framework agreement was signed with
the Norwegian Directorate of Integration and Diversity (IMDi) valued up to NOK
300 million over four years. In addition, Kredinor renewed its framework
agreement with Itera valued at NOK 200-250 million over four years.

— After more than a year in a challenging environment, we are beginning to see
positive trends in demand and several large new agreements that are expected to
improve utilisation gradually, says Arne Mjøs.

Itera’s headcount at the end of the third quarter of 2024 was 699 as compared to
762 at the end of the third quarter of 2023. This represents a decrease of 63
employees (-8%) over the last 12 months and a net decrease of 14 employees in
the third quarter.

Today, Itera announces a small acquisition, adding 20+ skilled employees and an
attractive customer base, to establish a new office in the Stavanger region.
This expansion enables closer proximity to significant customer potential within
energy, offshore, and other industries, advancing the green shift.

— We are opening a new office in the Stavanger region to strengthen our
position in South-Western Norway. I am also pleased to announce that the office
will be led by Nils Olav Nergaard, among the best IT leaders in the industry,
says Arne Mjøs, CEO of Itera.

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 – specialist in sustainable digital transformation
Itera is a leading international tech company that helps businesses and
organisations to accelerate their sustainable digital transformation. We have a
holistic ability to bring digital to the core of their business because of our
full range of services in digital strategy and consulting, customer experience,
technology, and cloud operations. Our integrated services and multi-disciplined
teams meet customer needs rapidly and at scale through our world-class
distributed delivery model across borders and our Digital Factory at Scale,
doing more for less. Working from our 15 offices in the Nordics and Central and
Eastern Europe, we serve customers in 20 countries worldwide. Itera is a listed
company on the Oslo Stock Exchange under the ticker ITERA.

More information:
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631682_Itera interim report Q3 2024.pdf
631682_Itera Q3 2024 presentation.pdf