Itera (ITERA) Q3 2021 earnings summary

Executive summary

• Core digital revenue grew 26.7% to NOK 138.9m in Q3, with a 10.4% EBIT margin; total revenue rose 7.4% to NOK 147.5m despite the data-centre wind-down.

• Focus remained on profitable growth and cash flow while data-centre operations were migrated to cloud services or exited.

Financial highlights

• Core digital EBIT rose 27.8% to NOK 14.5m; EBITDA was NOK 21.0m vs NOK 19.1m, with EBITDA margin of 15.1% vs 17.4%.

• Total-business Q3 EBITDA was NOK 17.5m and EBIT NOK 10.0m; net income was NOK 7.6m vs NOK 10.6m, and EPS was NOK 0.09 vs NOK 0.13.

• 9M core digital revenue rose 20% to NOK 434.2m; EBITDA was NOK 78.0m and EBIT NOK 58.8m.

• Q3 operating cash flow was NOK 15.6m vs negative NOK 16.4m; rolling 12-month operating cash flow was NOK 77m.

Outlook and guidance

• Core digital business was expected to continue growing, with profitable growth and cash flow as priorities; no market guidance was provided.

• Data-centre migration or termination was expected to be largely complete by year-end, with the full transition finalised in early 2022; cloud services were expected to gain momentum thereafter.

• Data-centre sunset was expected to reduce full-year 2021 total-business growth by 12–13 percentage points.

• Strategy focused on long-term customer relationships, broader project delivery, distributed Nordic and nearshore teams, and operational efficiency; regional expansion was aimed at proximity to customers and talent.