EVRY ASA: Strong Net Profit and Free Cash Flow combined with significant increase in Backlog
08 February 2019
(Fornebu, 8 February 2019): The EVRY Group reported total revenue for the fourth quarter of 2018 of NOK 3 413 million, equal to an organic growth of 0.4%. For the full year 2018 EVRY delivered an organic growth of 3.0%, equal to a total revenue of NOK 12 912 million, compared to NOK 12 596 million in 2017. The adjusted EBITA for the fourth quarter was NOK 475 million (13.9%), compared to NOK 495 million (14.5%) in the fourth quarter of 2017. The adjusted EBITA margin for the full year 2018 ended in line with the guidance at 12.3% (NOK 1 582 million), compared to 12.5% (NOK 1 569 million) in 2017.
Application services has been the main growth driver in 2018, but EVRY also experience very positive momentum within the consultancy business. The demand for digital consultancy services is high, and the fourth quarter of 2018 proof the position of EVRY in the Nordic market, where several consulting projects within emerging technologies and digital growth areas have been initiated and completed.
Financial Services is the business area with the strongest performance both during the quarter and for the full year, where it continues to extend scopes on the existing customer base, as well as the service delivery has expanded internationally. The fourth quarter of 2018 was the breakthrough for EVRY’s Financial Services business in Finland, through the new strategic agreement with Handelsbanken for delivery of core banking and payment solutions in Finland.
−What we have achieved in 2018 is a solid step in the right direction. We have had an exciting year, with growth outside of the Nordics in the financial market and a breakthrough in Finland, CEO Per Hove says
The order intake during the fourth quarter of 2018 has been significant, and the backlog which ended at NOK 19.4 billion as of December 2018 has been improved by NOK 1.6bn from September 2018. This is a result of some major contracts that have been signed, but also high intake of a balanced mix of multiple smaller and medium sized contracts and projects.
In 2018 EVRY delivered a total Net profit of NOK 640 million, an increase of NOK 901 million from 2017. This in combination with a full year 2018 Free cash flow of NOK 997 million (plus 9.2% compared to NOK 913 million in 2017), has resulted in a proposal from the board of directors to the AGM of paying a dividend of NOK 1.75 per share based on the 2018 financial performance.
Total revenue of NOK 3 413 million in Q4 2018, in line with Q4 2017. Organic growth** of 0.4% in Q4 2018 (3.7% in Q4 2017)
Total revenue of NOK 12 912 million in 2018 (NOK 12 596 million in 2017) resulting in an organic growth of 3.0% in 2018 (2.4% in 2017)
EBITA* in Q4 2018 of NOK 475 million (NOK 495 million in 2017), representing an EBITA* margin of 13.9% in 2018 (14.5% in 2017)
EBITA* in 2018 of NOK 1 582 million (NOK 1 569 million in 2017), representing an EBITA* margin of 12.3% in 2018 (12.5% in 2017)
Net profit of NOK 640 million in 2018, an increase of NOK 901 million from 2017
Free cash flow in 2018 of NOK 997 million, up 9.2% from NOK 913 million in 2017
Backlog of NOK 19.4 billion as of 31 December 2018, increased by NOK 1.4 billion from NOK 18.0 billion as of 31 December 2017
EPS* in 2018 of NOK 2.89 compared to NOK 2.82 in 2017
Other income and expenses down to NOK 545 million in 2018 (excluding provisions to former CEO) from NOK 1 215 million in 2017 in line with guidance
Board of Directors proposes dividend of NOK 1.75 per share, equal to 61% of Adjusted Net Profit
*) Before Other income and expenses
**) Organic growth is defined as revenue adjusted for impacts from acquisitions, divestment and foreign currency effects
More information regarding the Q4 2018 presentation today at 8:00 CET is found here: https://investor.evry.com/events/event-details/fourth-quarter-results-2018-and-preliminary-annual-results-2018-8-february
EVRY is one of the leading IT services and software providers in the Nordic region and has more than 10 000 customers across the private and public sectors. Every day more than five million people in the Nordic region use solutions delivered by EVRY. Through its strong local presence and in-depth technological and commercial insight, EVRY is a driving force for innovation and modernisation at its customers. EVRY reported turnover of NOK 12.9 billion in 2018 and has around 8 800 employees across nine countries. Its headquarter is located at Fornebu just outside Oslo, and the company is listed on Oslo stock exchange.
This information is subject to disclosure under the Norwegian Securities Act section §5-12