| Improved profitability for EDB |
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(Oslo, 29 January 2004) EDB Business Partner's turnover for the fourth quarter of 2003 was NOK 1,113 million, with an operating profit (EBITA) of NOK 106 million. Corresponding numbers for 2002 were NOK 1,126 mill and NOK 15 million. The operating margin for the quarter of 9.5% is the highest that the group has achieved since the fourth quarter of 2001. "In a market that fell slightly, this means that EDB has maintained or increased its market shares. Taking this together with improved operating margins for all business areas, we are satisfied with the group's performance in the fourth quarter. This forms a good starting point for 2004", comments CEO Endre Rangnes. The quarter's operating profit represents an operating margin (EBITA) of 9.5% as compared to 1.3% in the same quarter of 2002 (6,8% adjusted for one off items in fourth quarter 2002).
Fourth quarter operating profit (EBITA) by business area relative to the same quarter of 2002 was NOK 73 million (NOK 64 million) for IT Operations, NOK 30 million (NOK -31 million) for Bank & Finance, and NOK 19 million (NOK 9 million) for Telecommunications. The holding company's costs were NOK 16 million (NOK 10 million).
"We made a number of changes in 2003 to reduce the group's cost base. The clear improvement in the company's profitability shows that these measures have worked. Work on better adapting the organisation to the market also proceeded in line with expectations in a very hectic final quarter of 2003. There is a real willingness to embrace change throughout the organisation, and we are seeing a continuous improvement in pace within the company."
All business areas are showing improved profitability both compared to last quarter and fourth quarter 2002 as result of the measures implemented in 2003. IT Operations, the largest business area, reported 5% higher turnover in the fourth quarter and an 8% improvement for the year as a whole. And operating margin of 9.6% in the last quarter pulled this business area's margin for the year as a whole up to 8.7%. Bank & Finance experienced a demanding year, with major changes that affected its earnings. The operating margin for the year as a whole was negative (-5.1%), but a margin of 14.1% in the fourth quarter shows that this business area is moving quickly in the right direction. The Telecommunications business area is affected by stagnant market conditions, but a strong focus on costs allowed an improvement in operating margin to 11.1% in the 4th quarter and 10.3% for the year as a whole.
Goodwill amortisation in the fourth quarter was NOK 38 million. This gives an operating profit (EBIT) for the fourth quarter of 2003 of NOK 68 million as compared to an operating loss of NOK 383 million for the same quarter of 2002. By comparison the fourth quarter of 2002 saw goodwill amortisation and write-downs totalling NOK 399 million.
Cash from operations in the fourth quarter was NOK 343 million as compared to NOK 241 million in the same quarter of 2002 and NOK 112 million in the third quarter of 2003. Net financial items represented a charge of NOK 4 million in the fourth quarter as compared to NOK 5 million in the same quarter of 2002. Post-tax profit for the fourth quarter was NOK 45.8 million as compared to a loss of NOK 312 million for the same quarter in 2002. Earnings per share was NOK 0.51 as compared to a loss per share of NOK 3.45 for the same quarter of 2002.
Operating revenues for 2003 as a whole totalled NOK 4,289 million, down from NOK 4,341 million in 2002. After adjusting for businesses purchased and sold and activities discontinued during the course of the year, turnover was stable in 2003 compared to last year. Operating profit (EBITA) for 2003 was NOK 165 million, an increase from NOK 117 million in 2002, and operating margin for the year as a whole was 3.8%, up from 2.7% in 2002. The post-tax result for 2003 was a loss of NOK 63 million as compared to a loss of NOK 439 million for 2002.
More detailed financial information can be found in the interim report provided as an appendix to this announcement.
Presentation of 4th Quarter 2003 can be downloaded from the following link:
4th Quarter Report 2003, inclusive financial tables can be downloaded from the following link:
Any enquires may be addressed to:
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