"EDB's revenue and EBITA in the fourth quarter were both the highest ever, and 2006 was a good year for EDB. One in every four kroner of EDB's turnover is generated in Sweden, and I am particularly pleased to see a significant improvement in the profitability of the group's activities in Sweden over the course of 2006. EDB is delivering results in line with the strategy to be a leading Nordic IT services company, and we are well equipped for further profitable growth in the years to come", comments Endre Rangnes, CEO of EDB.

 

• Operating revenue was NOK 1,588 million as compared to NOK 1,269 million in the same quarter of 2005. This is equivalent to growth of 25 percent.
  
  
• The group reported operating profit before intangible asset amortisation (EBITA) of NOK 159 million, as compared to NOK 138 million for the fourth quarter of 2005.
  
  
• The group's EBITA margin was 10.0 percent for the quarter as compared to 10.9 percent for the same quarter of 2005.
  
  
• Profit after tax was NOK 141 million as compared to NOK 88 million for the same quarter in 2005. NOK 49 million of the improvement in profit after tax relates to the capitalisation of deferred tax assets in Sweden as at 31 December 2006 and the related reduction in tax charge.
  
  
• Earnings per share for the fourth quarter of 2006 before the increase in profit caused by capitalisation of deferred tax assets was NOK 1.01, as compared to NOK 0.92 for the fourth quarter of 2005, equivalent to an improvement of 10 percent. Earnings per share after deferred tax assets totalled NOK 1.55 for the fourth quarter of 2006 as a result of the capitalisation of deferred tax assets in Sweden.

• Operating revenues of NOK 5,822 million, equivalent to growth of 20 percent for the year.
  
  
• The group reported operating profit before intangible asset amortisation (EBITA) of NOK 541 million for 2006 as compared to NOK 503 million for 2005.
  
  
• EDB's activities in Sweden increased total revenues by 208 percent to NOK 1,338 million in 2006.
  
  
• Cash from operations before non-recurring items increased by 20 percent to NOK 709 million.
  
  
• The Board of Directors of EDB Business Partner will propose a dividend of NOK 1.10 per share.

Business areas in the fourth quarter of 2006
IT Operations: The business area's revenue for the quarter exceeded NOK 1 billion for the first time ever.  Operating revenue for the fourth quarter of 2006 was NOK 1,004 million, as compared to NOK 973 million in the same quarter of 2005. EBITA margin for the quarter was 9.2 percent as compared to 9.4 percent in the fourth quarter of 2005.

Solutions: The Solutions business area reported operating revenue of NOK 319 million in the fourth quarter of 2006 as compared to NOK 316 million in the same quarter of 2005. EBITA margin for the fourth quarter was 14 percent, as compared to 20 percent in the fourth quarter of 2005.

Application Services: The Application Services business area reported operating revenue of NOK 300 million in the fourth quarter of 2006 as compared to proforma revenue of NOK 245 million in the same quarter of 2005. This represents year-on-year organic growth of 22 percent for the activities that now make up Application Services. All the units in this business area reported double-digit organic growth in the fourth quarter. EBITA margin for the fourth quarter was 13 percent, as compared to proforma EBITA margin of 10.6 percent for the fourth quarter of 2005.

 

Future prospects
EDB expects to see good growth in the Nordic IT services market. EDB is following a growth strategy to strengthen the company's position as a Nordic supplier of IT services. The company is focusing in particular on taking steps to ensure that it develops the expertise of its staff and its cost competitiveness in line with or better than the market. In addition, EDB is well equipped to play an active role in the consolidation of the Nordic IT services sector.

 

Please see the attached quarter report for more detailed accounting information.

 

 

Any enquires may be addressed to:
Endre Rangnes, CEO. Tel: + 47 22 77 21 01
Tore Valderhaug, EVP and CFO. Tel: + 47 995 60 925
Geir Remman, EVP, Corporate Communications. Tel: +47 970 55 017

 

 

The fourth quarter 2006 interim report, including tables and the presentation of the results, can be downloaded from the following links: