EDB Business Partner increased its operating profit before intangible asset amortisation (EBITA) by 16% to NOK 143 million for the first quarter of 2007.
Good organic growth helped to increase operating revenue by 18% to NOK 1,583 million in the quarter. EDB signed new long-term agreements in the quarter that represent total contract value of NOK 1.1 billion.
"EDB has continued to win market share in 2007. Revenue is growing in line with our ambitions for profitable growth, and we have signed a number of strategically important agreements. Through our acquisition of Infopulse we have established a base for deliveries from a low cost country that ensures our future competitiveness and gives us greater delivery capacity. We have also launched a unique product suite for the public sector so that EDB is well positioned for continuing profitable growth", comments Endre Rangnes, CEO of EDB.
Highlights of the first quarter of 2007
- EDB reports overall organic growth of 6%, and organic growth of 27% in Sweden.
- EDB and Telenor have expanded their collaboration and have signed a 10-year Nordic framework agreement. So far this year, EDB has signed two new agreements for Telenor's Nordic activities, with total contract value of approximately NOK 500 million.
- EDB has acquired two companies in Sweden that strengthen the group's position in areas that offer opportunities for growth. The companies acquired are CEKAB, a card processing company, and Tre60, which specialises in Business Intelligence.
- EDB has signed new contracts with contract value of NOK 1.1 billion in total.
- EDB's order backlog is now close to NOK 11.1 billion, representing an increase of just under NOK 100 million since the start of the year.
Main figures for the first quarter of 2007
- Operating revenue was NOK 1,583 million. This represents an 18% increase from NOK 1,341 million in the same quarter of 2006.
- Operating profit before intangible asset amortisation (EBITA) was NOK 143 million, as compared to NOK 123 million for the first quarter of 2006.
- Profit before tax was NOK 96 million, as compared to NOOK 94 million in the same quarter of 2006.
- Earnings per share for the first quarter of 2007 was NOK 0.74, in line with the same quarter of 2006.
Revenue for the IT Operations business area was NOK 1,015 million, an increase of 6% from the first quarter of 2006.
The Solutions business area reported revenue of NOK 309 million. This represents growth of 2% from the same quarter last year. The Bank and Finance solutions area generated organic growth of 4%.
The Application Services business area reported operating revenue of NOK 291 million in the first quarter of 2007. Pro forma revenue for the first quarter of 2006 was NOK 248 million, giving overall organic growth of 17% for the first quarter of 2007.
EDB expects to see good growth in the Nordic IT services market. The company believes that demand will be strongest for application services and solutions, while outsourcing will continue to show modest growth. Outsourcing accounts for 40% of the IT services market. EDB is a significant player in this segment, and the company is well-positioned to grow in pace with or faster than the market as a whole.
EDB has announced agreements this year to acquire two companies in Sweden that will strengthen the company's position in segments with good growth. EDB's activities in Sweden accounted for 30% of the group's first quarter revenue. Sound market growth and the acquisitions mentioned will help to ensure that the Swedish activities will continue to generate an increasing proportion of the group's total revenue.
Separately, EDB Business Partner has appointed Lars Bjertnæs as Executive Vice President responsible for the IT Operations business area. Bjertnæs is 43 years of age and is currently an adviser in the IT sector.
Bjertnæs is an engineering graduate of the Norwegian University of Science and Technology and has extensive experience of the IT area. His management experience includes working on the Norwegian Armed Forces 'Golf' project, and he is currently working as the main project leader for the Ergo Group's delivery project in connection with the City of Oslo's major outsourcing of its IT services.
Bjertnæs will take up this appointment at a time to be agreed. He succeeds Ole Urdahl, who will work with major customer-related projects in order to strengthen EDB's organic growth.
Read the full Q1 results report here:Download the document now 61.4 kb (Adobe Acrobat Document)