EDB Business Partner ASA reports operating revenue for the second quarter of 2005 of NOK 1,285 million, with an operating profit before amortisation of intangible assets (EBITA) of NOK 117 million.
EDB has increased revenue by 23 percent over the past year while maintaining its EBITA margin.
Operating revenue increased by 23 percent from NOK 1,045 million in the second quarter of 2004 to NOK 1,285 million in the second quarter of 2005. The group reports operating profit before amortisation of intangible assets (EBITA) of NOK 117 million for the second quarter, equivalent to a growth of 23 percent from EBITA of NOK 95 million in the second quarter of 2004. This represents an EBITA margin of 9.1 percent, in line with the IFRS-adjusted margin for the second quarter of 2004.
"We have carried out yet another quarter with high revenue growth and good profitability. The organisation is working with continuous improvements to secure the good profitability and utilize opportunities for continued high growth," comments CEO Endre Rangnes.
The IT Operations business area reported operating revenue of NOK 962 million in the second quarter, up by 21 percent from the second quarter of 2004. Growth in revenue was principally due to the acquisition of Telenor Operating Services Division from 1 May 2004 and the activities acquired from IBM and Capgemini. The IT Operations business area generated operating profit before intangible asset amortisation (EBITA) of NOK 85 million in the second quarter, a year-on-year increase of 18 percent. EBITA margin for the second quarter was 8.9 percent, unchanged from the second quarter of 2004.
The Solutions business area reported operating revenue of NOK 285 million in the second quarter, representing growth of 25 percent after adjusting for activities transferred from IT Operations. The increase was principally related to the business acquired from IBM and acquisition of BanqIT Business Applications, as well as a high level of activity in the banking and finance market. Solutions produced a 19 percent year-on-year increase in second quarter EBITA from NOK 36 million to NOK 43 million. EBITA margin was 15 percent, as compared to the IFRS adjusted EBITA margin of 16.7 percent for the same quarter last year. The implementation of the transition to IFRS has again affected this quarter's reported revenues and profit negatively compared to the second quarter of 2004.
The remaining part of the Telecom business area reported operating revenue of NOK 59 million, representing an increase of 20 percent. Telecom produced EBITA of NOK 3 million for the second quarter of 2005, as compared to NOK 2 million for the second quarter of 2004.
Ordinary depreciation for the second quarter showed a year-on-year increase from NOK 61 million to NOK 82 million after acquisitions and the effect of new contracts. The second quarter accounts include a provision of NOK 12 million for restructuring costs in respect of the IT Operation business area's activities in Sweden. The group reports operating profit (EBIT) of NOK 80 million for the quarter following NOK 24 million amortisation of intangible assets. The group did not amortise intangible assets in the second quarter of 2004, in accordance with IFRS. The reported operating profit (EBIT) for the second quarter of 2004 was NOK 395 million following a gain on disposal of NOK 300 million. Net financial expense for the second quarter was NOK 11 million as compared to NOK 13 million in the second quarter of 2004. Pre-tax profit for the second quarter was NOK 69 million as compared to NOK 383 million in the second quarter of 2004.
The parent company reported an operating loss (EBITA) of NOK 14 million, in line with the operating loss for the second quarter of 2004.
The group reports a post-tax profit for the second quarter of 2005 of NOK 42 million as compared to NOK 278 million for the same quarter in 2004 after adjusting for IFRS. Earnings per share amounted to NOK 0.47 for the quarter as compared to NOK 3.07 for the second quarter of 2004.
EDB maintains its positive view of market prospects, and still expect the Nordic IT Services market to see growth in 2005 in line with 2004.
Detailed financial information can be found in the attached interim report.
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