| Continued strong growth and good profitability at EDB |
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(Oslo, 26 April 2005) EDB Business Partner asa reported operating revenue for the first quarter of 2005 of NOK 1,231 million, with an operating profit before amortisation of intangible assets (EBITA) of NOK 104 million. The 18 percent growth in revenue came principally from acquisitions of three businesses units from Telenor, IBM and Capgemini. The operating margin at 8.5 percent is assessed to be very satisfactorily. First quarter operating revenue increased by 18% from NOK 1.047 million in the first quarter of 2004 to NOK 1.231 million in the first quarter of 2005. After adjusting for the activities sold to Accenture in the second quarter of 2004, revenue was up by 31%. The group reports operating profit before amortisation of intangible assets (EBITA) of NOK 104 million for the first quarter, equivalent to a growth of 17% from EBITA of NOK 89 million in the first quarter of 2004. This represents an EBITA margin of 8.5%, in line with the IFRS-adjusted margin for the first quarter of 2004.
"In the first quarter we have been integrating the businesses acquired from IBM and Capgemini and have continued the integration following the acquisition of Telenor Operating Services in 2004. At the same time, we have made major organisational changes to the group. I am very satisfied to see that the business areas have delivered strong growth in turnover and continued good margins during a period of major changes", comments CEO Endre Rangnes.
The IT Operations business area, including around 55 percent of the business volume from the IBM-transaction, reported operating revenue of NOK 944 million in the first quarter, up by 33% from the first quarter of 2004. Growth in revenue was principally due to the acquisition of Telenor Operating Services Division and the activities acquired from IBM and Capgemini. The IT Operations business area generated operating profit before intangible asset amortisation (EBITA) of NOK 83 million in the first quarter, a year-on-year increase of 38%. EBITA margin for the first quarter was 8.8% as compared to 8.4% for the same quarter in 2004.
The Solutions business area, including around 45 percent of the business volume from the IBM-transaction, reported operating revenue of NOK 250 million in the first quarter, representing growth of 21%. The increase was principally related to the business acquired from IBM. Solutions produced a 14% year-on-year increase in first quarter EBITA from NOK 29 million to NOK 33 million in the quarter. EBITA margin was 13.2%, as compared to 14.0% for the same quarter last year. The implementation of the transition to IFRS has affected reported revenues and profit negatively compared to the first quarter of 2004, when reported EBITA-margin was 9,3% according to NGAAP.
The remaining part of the Telecom business area reported operating revenue of NOK 57 million, representing an increase of 22% mainly from the Network Inventory Management Systems (NIMS) area. Telecom produced EBITA of NOK 2 million for the first quarter of 2005, as compared to an operating loss for the first quarter of 2004. Telecom is now operationally part of the Solutions business area, but its figures are reported separately to assist with evaluation of the new business area since Telecom does not operate in the same market as the other activities of Solutions and its market is subject to different value-drivers
Ordinary depreciation for the first quarter showed a year-on-year increased from NOK 48 million to NOK 73 million after acquisitions and start up of new contracts. The group reports operating profit (EBIT) of NOK 81 million for the quarter, following amortisation of intangible assets with NOK 23 million. The group did not amortise intangible assets in the first quarter of 2004, after IFRS. Net financial expense was NOK 16 million, in line with financial expense in the first quarter of 2004. Pre-tax profit for the quarter was NOK 65 million
The parent company reported an operating loss (EBITA) of NOK 13 million, in line with the operating loss for the first quarter of 2004.
The group reports a post-tax profit for the first quarter of 2005 of NOK 44 million as compared to NOK 51 million for the same quarter in 2004. Earnings per share amounted to NOK 0.49 for the quarter as compared to NOK 0.56 for the first quarter of 2004.
EDB's view of market prospects remains unchanged, and it still expects the Nordic IT Services market to grow at 6 percent in 2005.
Detailed financial information can be found in the attached interim report.
Presentation of 1st Quarter 2005 can be downloaded from the following link:
1st Quarter Report 2005, inclusive financial tables can be downloaded from the following link: Any enquires may be addressed to:
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