Itera (ITERA) Q1 2022 earnings summary

Executive summary

• Q1 continuing-operations revenue rose 22% YoY to NOK 176.0m; EBITDA was NOK 33.3m and EBIT NOK 26.1m, both up 18%.

• Almost all Ukrainian customer projects returned to near-normal activity after brief disruption; safety and continuity plans remained priorities.

• Results reflect the core digital business after the residual data-centre operations were sold and reported as discontinued operations.

Financial highlights

• Revenue was NOK 176.0m, up 22%; gross profit was NOK 162.0m, up 22%, with gross margin of 92.1%, up 0.4 percentage points.

• EBITDA was NOK 33.3m, up 18%, with an 18.9% margin vs. 19.5%; EBIT was NOK 26.1m, up 18%, with a 14.9% margin vs. 15.3%.

• Profit before tax was NOK 26.0m, up 19%; continuing-operations net income was NOK 20.0m, up 17%; continuing-operations EPS was NOK 0.25 vs. NOK 0.21.

• Net income including discontinued operations was NOK 11.3m vs. NOK 14.2m; operating cash flow was NOK -0.4m vs. NOK 0.6m.

• One extra Norwegian working day contributed ~NOK 1.3m to revenue and profit; reported growth was organic.

Outlook and guidance

• Focus remains on profitable growth, long-term customer relationships, end-to-end services, distributed delivery and operational efficiency; no market guidance was provided.

• Cloud Centre of Excellence and Digital Factory at Scale are growth platforms; freed data-centre capacity will support consulting and managed services.

• Continued profitable development in Ukraine is expected, but the war’s future impact remains uncertain; customers largely reaffirmed commitments.

• Expansion in the Nordics and Central Europe, including Žilina and planned Brno offices, is intended to widen access to talent.