EDB's operating revenue increased from NOK 990 million in the third quarter of 2004 to NOK 1,164 million in the third quarter of 2005. The group's EBITA margin was 10.6 percent as compared to 12.3 percent in the same quarter last year. The year-on-year change is related entirely to unusually high net income recognition in accordance with IFRS in the figures for the third quarter of 2004 that does not reflect the level of activity in the quarter.

"We continue to report very strong earnings, and we are working on measures that will ensure continuing growth and profitability. We have entered into a number of important contracts this quarter", comments Endre Rangnes, CEO of EDB Business Partner.

• EDB has entered into a strategically important agreement with DnB NOR for e-invoicing in the corporate market.
• EDB has signed a final agreement with i-flex. The contract creates opportunities in the banking and finance area both with a Nordic perspective and for the global distribution of EDB's software components.
• EDB is strengthening its focus on the public sector. It is renewing its product portfolio, and Eva Trasti, who previously headed up the Payments & Cards section of Solutions, has been appointed as the new head for this area.
• EDB sold its Telecom division in the third quarter, and its activities are now focused on the business areas of IT Operations and Solutions.
• EDB has a 37 percent share of the corporate midmarket in Norway. This is the most rapidly growing market segment for outsourcing in the Nordic countries.
• EDB's third quarter cash flow was its best ever. EDB now has liquidity reserves of NOK 764 million. 

The IT Operations business area reported a 14 percent year-on-year increase in revenue for the third quarter as result of the business activities acquired from IBM and Capgemini. The Solutions business area delivered year-on-year revenue growth of 26 percent. This was largely the result of the activities acquired from IBM and the acquisition of BanqIT Business Applications, as well as a continuing high level of activity in the banking and finance area. The activities of the Telecom business area were sold to Comptel Corporation and the management of Telesciences Inc. as at 30 September 2005, and this business area is deconsolidated with effect from the third quarter of 2005. Earnings per share amounted to NOK 0.70 for the quarter as compared to NOK 0,90 for the third quarter of 2004.

 

EDB expects macroeconomic conditions to remain positive throughout the remainder of 2005 and into 2006. We believe that the Nordic IT Services market will continue to see market growth in line with 2005. In our business areas, we see increasing focus on outsourcing among medium-sized businesses, and sound growth for our industrial verticals, particularly banking and finance.

 

Please see the attached third quarter report for more detailed financial information.

 

The third quarter 2005 presentation can be downloaded from the following link (PDF):

 

 

The third quarter 2005 interim report, including financial tables, can be downloaded from the following link: