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EDB posts fourth quarter results

03 February 2010  |  1014 views  |  0 Source: EDB

EDB Business Partner reports revenue of NOK 1,917 million in the fourth quarter of 2009, as compared to NOK 2,145 million in the fourth quarter of 2008.

EDB's operating profit before intangible asset amortisation (EBITA) was NOK 168 million, as compared to NOK 193 million for the fourth quarter in 2008.

"2009 proved to be one of the most challenging years ever for the IT services market. We experienced a decline in demand in the same way as the rest of our industry, but EDB's improvement program helped us to maintain satisfactory profitability. Despite the difficult market conditions, our customers have showed great confidence in EDB and this helped us to achieve a record level of order inflow for the year at NOK 8.6 billion", comments Acting CEO John-Arne Haugerud.


Key figures and main features of the fourth quarter of 2009

• Operating revenues of NOK 1,917 million (NOK 2,145 million)
• EBITA of NOK 168 million (NOK 193 million)
• EBITA-margin 8,8 percent (9,0)
• Cash from operations of NOK 374 million (NOK 606 million)
• CAPEX of NOK 62 million (NOK 71 million)
• New contracts: NOK 1.4 billion (NOK 850 million)
• Earnings per share: NOK 0.59 (NOK 0.54)


Key figures and main features of 2009

• Operating revenues of NOK 7,492 million (NOK 7,871 million)
• EBITA of NOK 603 million (NOK 724 million)
• Cash from operations of NOK 591 million (NOK 759 million)
• CAPEX of NOK 215 million (NOK 329 million)
• New contracts: NOK 8.6 billion (NOK 3.7 billion)
• Reduction in costs of NOK 400 million achieved through the cost program
• Earnings per share: NOK 1.36 (NOK 2.18)

Results from the business areas for the fourth quarter of 2009

IT Operations: The business area reports revenue of NOK 1,110 million for the fourth quarter of 2009 as compared to NOK 1,211 million for the same quarter in 2008. EBITA for the quarter was NOK 97 million, as compared to NOK 101 million in the fourth quarter of 2008.

Solutions: The business area reports revenue of NOK 405 million for the fourth quarter of 2009 as compared to NOK 382 million for the same quarter in 2008. EBITA for the quarter was NOK 51 million, as compared to NOK 52 million in the fourth quarter of 2008.

Application Services: The business area reports revenue of NOK 506 million for the fourth quarter of 2009 as compared to NOK 626 million for the same quarter in 2008. EBITA for the quarter was NOK 48 million, as compared to NOK 60 million in the fourth quarter of 2008.

In Application Services EDB wants to prepare for increased use of global sourcing consultants in collaboration with EDB's nordic consultants.

So far this area has been organized as to separate units within Application Services. To realize the potential in a closer collaboration between the units, Tom Scharning is appointed new Executive Vice President responsible for the business area Application Services with effect from 3. February.

Future prospects

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 within bank and finance.

At the start of 2010, there is still reluctance with respect to investments. EDB is experiencing growth 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, having 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.

Read the full statement here:

» Download the document now 176 kb (PDF File)

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