EVRY reports EBITA of NOK 169 million for the second quarter of 2015
GlobeNewswire
(Oslo, 16 July 2015) EVRY reports EBITA of NOK 169 million for the second quarter of 2015, as compared to NOK 181 million for the second quarter of 2014. EBITA margin for the second quarter was 5.1% compared to 5.5% in the same period last year. Cash flow from operations totalled NOK 259 million in the second quarter of 2015, representing an increase from NOK 136 million in the second quarter of 2014.
EVRY signed contracts worth NOK 3.5 billion in the second quarter, and a strong inflow of contracts helped the company increase its order backlog to NOK 17.4 billion at 30 June 2015. The group reported operating revenue of NOK 3,292 million for the second quarter of 2015, as compared to NOK 3,271 for the same period in 2014. Organic growth was flat at the company.
"In the second quarter we secured the renewal of a number of long-term contracts that are strategically important to EVRY, and this helped us increase our order backlog. We have also announced that we are simplifying the company`s organisation in order to ensure a stronger focus on customers and less complexity, which in turn will improve our long-term competitive position. And, last but not least, we are seeing free cash flow improve as a result of stronger working capital and improved capital management," comments Björn Ivroth, CEO of EVRY.
Key figures and main features of the second quarter of 2015
Operating revenue of NOK 3,292 million, in line with the second quarter of 2014.
EBITA before non-recurring items of NOK 169 million (NOK 181 million in the second quarter of 2014).
Pre-tax loss (EBT) of NOK 28 million (pre-tax profit of NOK 62 million in the second quarter of 2014).
Earnings per share before non-recurring items (EPS) of NOK 0.20 (NOK 0.39 in the second quarter of 2014).
Cash flow from operations of NOK 259 million (NOK 136 million in the second quarter of 2014).
The group`s order backlog totalled NOK 17.4 billion at 30 June 2015.
Second quarter 2015 figures for EVRY`s business areas
The EVRY Financial Services segment reports operating revenue of NOK 919 million for the second quarter of 2015 as compared to NOK 921 million for the second quarter of 2014, representing flat organic growth. EVRY Financial Services produced EBITA of NOK 104 million in the second quarter of 2015 as compared to NOK 94 million in the second quarter of 2014.
The EVRY Sweden segment reports operating revenue of NOK 893 million for the second quarter of 2015 as compared to NOK 910 million for the second quarter of 2014, representing an organic decrease of 3%. The EVRY Sweden segment produced EBITA of NOK 42 million in the second quarter of 2015 as compared to NOK 48 million in the second quarter of 2014.
The EVRY Norway segment reports operating revenue of NOK 1,554 million for the second quarter of 2015 as compared to NOK 1,551 million for the second quarter of 2014, representing flat organic revenue growth. EVRY Norway produced EBITA of NOK 49 million in the second quarter of 2015 as compared to NOK 72 million in the second quarter of 2014.
Company outlook
Expectations for the general economic outlook in Norway have weakened. The Confederation of Norwegian Enterprise`s Business Barometer shows that businesses think the Norwegian economy will be weaker this year and next. In Sweden, the Swedish National Institute for Economic Research has seen its Economic Tendency Indicator, which produces an aggregate result from answers given by private individuals and businesses, fall a little during the course of the second quarter. Despite the decrease, the Indicator shows a somewhat higher level than the historical average.
EVRY is seeing significant differences in the market conditions in the industries and regions in which it operates. In Norway, it is particularly the Stavanger region that has been weakened by the general slowdown. In contrast, there are business opportunities where the value proposition is digitalisation designed either to increase businesses` ability to compete or to improve the way public sector organisations use resources. This is particularly the case in relation to healthcare and municipalities.
The market for operating services for larger customers is expected to continue to be characterised by pressure on prices as a consequence of international competition. The newly launched operating services centre at Fet that benefits from very advanced technological solutions is giving EVRY greater cost-effectiveness and security, which is strengthening the company`s competitive position in the market. The trend for medium-sized businesses to replace the traditional procurement of equipment with service deliveries is continuing. EVRY is seeing demand for `Client as a Service`, its concept for providing PCs and mobile devices which involves customers using a financing solution to pay a fixed unit price that includes hardware, software and support.
Reduced demand is being seen in the market for general consulting, while industry and solution-focused consulting activities are stable. EVRY is intensifying its work on industry specialisation and its focus on attractive regions, and is making organisational adjustments in Norway and Sweden in order to strengthen the development of the company. It is also continuing to focus on verticals such as banks, insurance, healthcare and other areas of the public sector as well as specific customers and industries. The measures that are being taken are intended to streamline operations, and to bring about significant benefits in terms of EVRY`s dialogue with its customers and its competitiveness. Thanks to EVRY`s attractive solutions, and EVRY`s sharpened focus on innovation in its dialogue with customers is strengthening its position as the leading supplier in Financial Services in the Nordic countries.
Overall, with its broad portfolio of business from a range of geographic and industry segments, EVRY expects to follow the moderate rate of market growth anticipated in Norway and Sweden.
This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
EVRY is one of the leading IT companies in the Nordic countries, with a strong local and regional presence in 50 Nordic towns and cities. Through its knowledge, solutions and technology, EVRY contributes to the development of the information society of the future, and so creates value for the benefit of its customers and for society as a whole. EVRY combines in-depth industry knowledge and technological expertise with a local delivery model and international strength.
EVRY has some 10,000 employees, and the company is committed to demonstrating that Nordic customers are best served by a supplier that understands Nordic business from the inside. EVRY reports annual turnover approaching NOK 13 billion. The company is listed on the Oslo Stock Exchange and operates from headquarters at Fornebu in Bærum, with major activities in both the Norwegian and Swedish markets.
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein. Source: EVRY via GlobeNewswire HUG#1939166
