Oslo, 27 October 2023: The third quarter for Itera was characterized by an
organic growth of 14% and an operating profit margin of 4.5%. Although the
overall macro environment remains somewhat uncertain, Itera's performance
demonstrates its resilience. The Board has approved an additional dividend of
NOK 0.40 per share. 

- The most important thing is for us to stay connected to our customers and to
truly understand their needs. Our customers require short-term solutions to add
value, as well as support with digitally transforming their businesses. Strong
revenue growth and effective cost control, combined with reduced expansion pace,
enable us to increase the total dividend by 40% in 2023, says Arne Mjøs, CEO of
Itera.

Itera reports operating revenue of NOK 193.9 million (NOK 170.9 million) for the
third quarter of 2023, which represents organic growth of 14%. For the first
nine months operating revenue was NOK 649.5 million (NOK 530.4 million), which
represents organic growth of 22%.

- To reflect on how our market has developed over the last 4-5 months, we and
our customers have had to navigate a tougher macroeconomic environment than we
anticipated at the beginning of the year. As we soon enter 2024, we remain
focused on creating value for our customers and we are going to pivot to areas
of growth and optimize our business. We believe helping our customers to
accelerate the digital transformation of their business will be the drivers of
our growth, says Arne Mjøs, CEO of Itera.

Itera's headcount at the end of the third quarter of 2023 was 762 as compared to
701 at the end of the third quarter of 2022. This represents an increase of 61
employees (9%) during the last 12 months and an increase of 21 employees in the
third quarter, of which mostly university graduates. 

- The growth in our headcount has been slower over the last quarters to adapt to
the softer market. We also continued to leverage our Digital Factory at Scale,
doing more with less through automation and managed services, which means our
overall headcount will not really need to grow at the same rate as our revenue,
says Arne Mjøs.
Total operating expenses in the third quarter of 2023 were NOK 185.3 million
(NOK 160.7 million) and NOK 589.2 (NOK 472.6 million) for the first nine months.
Itera has implemented a business optimization programme that is expected to
improve operating margins by 1.2-1.6% when fully implemented. 

The operating result before depreciation and amortization (EBITDA) for the third
quarter of 2023 was a profit of NOK 16.9 million (NOK 18.7 million), giving an
EBITDA margin of 8.7% (10.9%). For the first nine months EBITDA was NOK 84.1
million (NOK 80.8 million) with an EBITDA margin of 13.0% (15.2%).

The operating result (EBIT) for the third quarter was a profit of NOK 8.7
million (NOK 10.2 million), giving an EBIT margin of 4.5% (5.9%). EBIT for the
first nine months was NOK 60.3 million (NOK 57.8 million) with an EBIT margin of
9.3% (10.9%).

-  We are implementing several business optimization actions to lower costs in
2023 and beyond, in order to achieve margin improvements over the next quarters.
This includes increasing our demand-generation activities, increasing hourly
rates in line with inflation, transforming overheads into billable value
creation and reducing operating expenses and capex, says Mjøs.

The revenue from Itera's 30 largest customers accounted for 83% of its operating
revenue, which is the same as in the third quarter of 2022. New customers
accounted for 5% (15%) of revenue. 

For more information:

Arne Mjøs, CEO | arne.mjos@itera.com | +47 905 23 172
Bent Hammer, CFO | bent.hammer@itera.com | +47 982 15 497

 
About Itera - specialist in sustainable digital transformation  
Itera is a leading international tech company that helps businesses and
organisations to accelerate their sustainable digital transformation. We have a
holistic ability to bring digital to the core of their business because of our
full range of services in digital strategy and consulting, customer experience,
technology, and cloud operations. Our integrated services and multi-disciplined
teams meet customer needs rapidly and at scale through our world-class
distributed delivery model across borders and our Digital Factory at Scale,
doing more for less. For the past six years, Itera has been recognised as one of
Norway's 25 most innovative companies, and its distributed delivery model was
recognised as the best in the world by the Global Sourcing Association (GSA) in
2018. Working from our 14 offices in the Nordics and Central and Eastern Europe,
we serve customers in 20 countries worldwide. Itera is a listed company on the
Oslo Stock Exchange under the ticker ITERA.