Continued growth and strong EBITA margin in line with strategy
31 October 2019
(31 October 2019, Fornebu) EVRY reports operating revenue of NOK 3 092 million for the third quarter of 2019, as compared to NOK 3 005 million in the third quarter of 2018. Adjusted for currency impact and acquisitions, the growth within consulting and application services was strong, 5.5% and 9.2% respectively. The Group reported organic growth of 2.5% in the third quarter.
Operating revenue for the first nine months of 2019 was NOK 9 599 million, up from NOK 9 499 million compared to the same period last year.
Reported EBITA* in the third quarter of 2019 was NOK 422 million, compared to NOK 413 million in the third quarter of 2018. The EBITA* margin ended at 13.7%, in line with the same quarter last year. The reported EBITA the first nine months of 2019 was NOK 1 108 million, compared to NOK 1 107 million in the first nine months of 2018. The EBITA margin ended at 11.5% in the first nine months of 2019, compared to 11.7% in the first nine months of 2018.
EVRY had an order backlog of NOK 16.7 billion at the end of September.
TietoEVRY merger on track to create a leading Nordic digital service company The integration planning for the merger of Tieto and EVRY is on schedule. The merger is awaiting approval from the respective competition authorities. The integration planning focuses on cultural integration, operational readiness and synergy implementation. Recently, a new Group Leadership for TietoEVRY was announced. These appointments will come into effect after the closing of the merger, which is expected to take place during the fourth quarter of 2019, or the first quarter of 2020 at the latest.
Attractive employer brand in competitive market In a fierce war for IT and tech talent, EVRY keeps attracting competence. EVRY started 2019 with the challenging ambition to recruit at least 1,000 employees before the year-end. At the end of September, a total of 917 new people had joined EVRY in the Nordics. 180 of the recent hires are graduates in Norway and Sweden. EVRY stands out with a strong employer brand and continues to be ranked as a very attractive place to work, both among graduates as well as more experienced IT professionals. EVRY is also Norway’s largest employer for women in technology with over 1,000 female IT professionals. EVRY is now number eight on EY’s “She Index” among Norwegian companies in general – and stands out as the most gender balanced IT company in Norway.
CEO Per Hove comments:
“I am pleased to inform that EVRY is progressing well towards our goal to become a Nordic technology and consulting powerhouse. We see that our strategic choices are now leading to solid growth and positive impact, also in Sweden. It makes me very proud to see how strong EVRY’s employer brand and value proposition are now - and especially how we are recognised for our efforts to become a more gender balanced company.
The TietoEVRY merger integration planning is also on track and has been well received by both customers and employees. The announced Group structure and leadership team constitute an important part of the TietoEVRY integration programme, and I believe we have landed on a strong leadership team that is well-equipped to take us into the future as one company.”
Total revenue of NOK 3 092 million in Q3 2019 (NOK 3 005 million in Q3 2018)
Total revenue of NOK 9 599 million YTD 2019 (NOK 9 499 million YTD 2018)
Organic growth** of 2.5% in Q3 2019 (4.0% in Q3 2018)
Organic growth** of 0.9% in YTD 2019 (3.9% YTD 2018)
EBITA* in Q3 2019 of NOK 422 million (NOK 413 million in Q3 2018), representing an EBITA* margin of 13.7% in Q3 2019 (13.7% in Q3 2018)
EBITA* YTD 2019 of NOK 1 108 million (NOK 1 107 million YTD 2018), representing an EBITA* margin of 11.5% YTD 2019 (11.7% YTD 2018)
EPS* in Q3 2019 of NOK 0.67 (NOK 0.79 Q3 2018)
EPS* YTD 2019 was NOK 1.73 (NOK 1.87 YTD 2018)
Backlog of NOK 16.7 billion as of 30 September 2019
Last Twelve Months (LTM) Cash Conversion at 30 September 2019 of 90.5%, up from 82.8% in Q3 2018
*) Before other income and expenses
**) Organic growth is defined as revenue adjusted for impacts from acquisitions, divestment and foreign currency effects.
EVRY is a leading Nordic tech and consulting company. Together with our customers and an ecosystem of the best global digital experts, we shape the future today by applying new technologies to improve end user experiences, and the performance of people, processes and systems.
We are close to our customers and represent a Nordic mindset on responsibility, quality and security.
We leverage our Nordicness to do business in more than 18 countries. EVRY is listed on Oslo Stock Exchange under the ticket code EVRY. Our 9 000 employees are passionate about creating digital advantage and shaping the future – today.
EVRY reported turnover of NOK 12.9 billion in 2018 and the company's headquarters are located at Fornebu just outside Oslo.
This information is subject to disclosure under the Norwegian Securities Act section §5-12.