The group reports operating revenue of NOK 1,126 million for the fourth quarter, NOK 125 million (12%) higher than in the previous quarter. All business areas reported higher turnover than in the third quarter. The increase is due in part to normal seasonal variations and in part to higher turnover for the Computer Operating Services business area as a result of a major new outsourcing assignment.

 

Fourth quarter operating profit before goodwill depreciation (EBITA) for the group as a whole was NOK 15 million, sharply down from the previous quarter. After adjusting for non-recurring provisions, the fourth quarter shows better underlying profitability than the previous quarter, with operating profit of NOK 77 million after adjusting for non-recurring provisions as compared to a profit of NOK 71 million in the third quarter.

 

Turnover for the fourth quarter of 2002 was NOK 1,126 million as compared to NOK 1,519 million for the fourth quarter of 2001. The change reflects the fall in market demand experienced by the Bank & Finance, Telecommunications and Consultancy Services business areas since the close of 2001. The turnover figure reported for the fourth quarter of 2001 included gains on disposals of NOK 104 million.

 

Operating profit (EBITA) for the quarter was NOK 193 million lower than in the fourth quarter of 2001. After adjusting for capital gains in 2001 (NOK 104 million) and the net difference in nonrecurring items (NOK -42 million) the drop in profit is NOK 48 million. This should be seen in relation to the fall in turnover of NOK 289 million (excluding capital gains). The significant cost savings that have been implemented served to markedly reduce the impact of lower turnover on profit. Computer Operating Services reported an improvement in operating profit from the fourth quarter of 2001 thanks to cost savings achieved, and Consultancy Services showed an improvement in underlying margin despite a significant fall in turnover.

 

Consolidated turnover for 2002 as a whole was NOK 4,341 million with an operating profit (EBITA) of NOK 117 million. Turnover was NOK 720 million (14%) lower than in 2001, while operating profit was NOK 244 million weaker. After adjusting for non-recurring items the fall in operating profit was NOK 155 million. The lower turnover reported was a result of general weak market conditions in 2002.

 

Headcount reductions and other cost saving measures have helped to ensure that the company maintained a positive operating margin for the year as a whole despite the marked deterioration in market conditions. Profitability showed a gradual improvement over the course of the year.

 

The group's staff numbers reduced by 435 over the course of 2002. The most recent reductions in headcount are expected to have a full impact on profitability during the first quarter of 2003.

 

The group reviewed of all balance sheet goodwill items at the close of the fourth quarter. Individual goodwill items have been evaluated on the basis of the discounted present value of expected future cash flows. This has resulted in write-downs of goodwill totalling NOK 352 million, of which NOK 259 million relates to Bank & Finance and NOK 93 million to Consultancy Services.

 

A loss of NOK 13 million was recognised in the fourth quarter on share-related financial items (of which a write-down of shares in TIBE accounted for the major part) as compared to a loss of NOK 109 million in the fourth quarter of 2001. 

 

Net financial items for the quarter of NOK -5 million include NOK 10 million of net currency gains, principally in respect of liabilities denominated in foreign currency. For 2002 as a whole net currency gains amounted to NOK 10 million.

 

The fourth quarter of produced a post-tax loss of NOK 312 million as compared to a profit of NOK 14 million in the fourth quarter of 2001. Earnings per share after tax but before goodwill depreciation was equivalent to NOK 0.96 in the fourth quarter as compared to NOK 0.69 in the fourth quarter of 2001.

 

The group reports a post-tax loss for 2002 as a whole of NOK 432 million as compared to a loss of NOK 1,061 million in 2001. Earnings per share after tax but before goodwill depreciation was equivalent to NOK 1.03 for 2002 as compared to NOK 4.46 for 2001.

 

The Board of EDB Business Partner notes that the company has maintained a strong position in a difficult market. The Board does not consider the earnings reported for 2002 to be satisfactory, but welcomes the positive improvement in profitability generated by the cost saving measures implemented during the year.

 

 

The fourth quarter 2002 presentation is available for download on the following link:

 

The full fourth quarter 2002 interim report with tables: