Third quarter results and a new office in Stavanger Region

Despite this challenge, the company is beginning to see positive trends in demand and has during the quarter secured several large framework agreements of 500 MNOK in estimated value. Additionally, Itera is expanding its presence by opening a new office in Stavanger through a small acquisition.

Itera reports operating revenue of NOK 184.2 million (NOK 193.9 million) for the third quarter of 2024. For the first nine months of 2024 operating revenue was NOK 636.9 million (NOK 649.5 million).

Revenue and profitability were negatively impacted by a global customer replacing a significant portion of Itera’s activities with a global supplier, leading to a sudden reduction in volume that affected approximately 35-40 consultants. The customer has, however, based on a comprehensive assessment, decided to revert the assignments back to Itera and their successful distributed delivery model with effect from November.

— I am very proud of our ability to win back this customer amid fierce global competition. Furthermore, the customer intends to forge an even stronger partnership with Itera for all its operations in the Nordic region, says Arne Mjøs, CEO of Itera.

Total operating expenses in the third quarter of 2024 were 1% lower at NOK 184.1 million (NOK 185.2 million).

The operating result before depreciation and amortisation (EBITDA) for the third quarter of 2024 was a profit of NOK 8.3 million (NOK 16.9 million), giving an EBITDA margin of 4.5% (8.7%).

The operating result (EBIT) for the third quarter was a profit of NOK 0.1 million (NOK 8.7 million), giving an EBIT margin of 0.1% (4.5%).

During the third quarter, a new substantial framework agreement was signed with the Norwegian Directorate of Integration and Diversity (IMDi) valued up to NOK 300 million over four years. In addition, Kredinor renewed its framework agreement with Itera valued at NOK 200-250 million over four years.

— After more than a year in a challenging environment, we are beginning to see positive trends in demand and several large new agreements that are expected to improve utilisation gradually, says Arne Mjøs.

Itera’s headcount at the end of the third quarter of 2024 was 699 as compared to 762 at the end of the third quarter of 2023. This represents a decrease of 63 employees (-8%) over the last 12 months and a net decrease of 14 employees in the third quarter.

Today, Itera announces a small acquisition, adding 20+ skilled employees and an attractive customer base, to establish a new office in the Stavanger region. This expansion enables closer proximity to significant customer potential within energy, offshore, and other industries, advancing the green shift.

— We are opening a new office in the Stavanger region to strengthen our position in South-Western Norway. I am also pleased to announce that the office will be led by Nils Olav Nergaard, among the best IT leaders in the industry, says Arne Mjøs, CEO of Itera.