EVRY: Record order inflow in the second quarter

(Oslo, 16 July 2014) EVRY signed new contracts totalling NOK 5.2 billion in the second quarter of 2014, and closed the quarter with its order backlog at an all-time high of NOK 18.4 billion. Operating revenue for the second quarter of 2014 totalled NOK 3,296 million, equivalent to organic growth of 2%, while EBITA for the quarter of NOK 180 million was in line with the same quarter last year.

"We have signed a number of important contracts this quarter, particularly in the bank and finance segment, which are strategically important for our long-term growth strategy. In addition to growing our revenue, we are continuing our program of work to improve organisational efficiency, and this will help to strengthen our profitability in the future", comments Terje Mjøs, CEO of EVRY.

Growth in all segments
EVRY reports revenue growth in all its reporting segments for the third quarter in a row. Strong demand for mobility solutions meant that EVRY Sweden reported 6% organic growth, which is a substantial improvement from previous quarters.

EVRY Financial Services signed contracts in the second quarter representing total contract value of NOK 3 billion. The two largest contracts are with the SpareBank 1 Alliance and Sparebanken Vest, making them EVRY's first customers for the next generation of core banking and payment solutions. Both of these customers will migrate to the new solutions over the course of the new contract period. This gives EVRY a foundation for further growth in an important area for banks throughout the Nordic region.

EVRY's order backlog at the close of the second quarter was NOK 18.4 billion, which is the highest level the company has ever reported.

Key figures and main features of the second quarter of 2014

Operating revenue of NOK 3,296 million, representing organic growth of 2% from the second quarter of 2013All segments reported organic growthEBITA of NOK 180 million (NOK 179 million in the second quarter of 2013)Cash flow from operations of NOK 136 million (NOK 104 million in the second quarter of 2013)The group's order backlog amounted to NOK 18.4 billion at 30 June 2014, an increase of NOK 1.9 billion from the close of the first quarter of 2014.

Second quarter 2014 figures for EVRY's business areas
The EVRY Financial Services segment reports operating revenue of NOK 921 million for the second quarter of 2014 as compared to NOK 906 million in the second quarter of 2013, representing organic growth of 1%. EVRY Financial Services produced EBITA of NOK 94 million in the second quarter of 2014 compared to NOK 76 million in the second quarter of 2013.

The EVRY Sweden segment reports operating revenue of NOK 910 million for the second quarter of 2014 as compared to NOK 839 million in the second quarter of 2013, representing organic growth of 6%. EVRY Sweden produced EBITA of NOK 48 million in the second quarter of 2014 compared to NOK 46 million in the second quarter of 2013.

The EVRY Norway segment reports operating revenue of NOK 1,577 million for the second quarter of 2014 as compared to NOK 1,569 million in the second quarter of 2013, representing organic growth of 1%. EVRY Norway produced EBITA of NOK 71 million in the second quarter of 2014 compared to NOK 85 million in the second quarter of 2013.

Company outlook
For the Norwegian economy, Statistics Norway continues to anticipate a moderate pace of growth in activity over the next two years, with GDP growth of around 2%.

In Sweden, the Confederation of Swedish Enterprise reports a temporary weakening of business investment in the second quarter. However, Swedish exports and business investment are expected to return to growth in pace with improving global economic growth, and GDP growth in Sweden is expected to be around 2.5%.

Turning to the IT services market, EVRY sees a situation characterised by steady demand and moderate growth. There is still a tendency for slower than usual sales processes, with the attendant risk of cancellation and deferrals, but there is also greater appetite to evaluate new investments that can support or boost top line growth. This trend is confirmed by the results of IDC's 2014 Enterprise Services Survey, with 54% of respondents expecting to increase their use of external services in 2004, and only 7% expecting a reduction.

EVRY is experiencing stable demand for consulting and advisory services, with customers' expectations for specialised and industry-relevant expertise being the main driver. Similarly, hourly rates are largely dependent on customers' perception of the relevance of the services provided.

The trend for increased use of external services is reflected in strong demand for operating services in the SMB segment. In Sweden, this trend is also apparent for larger customers, but in Norway the enterprise customer market is currently characterised by renegotiations of existing contracts.

A continuing high level of activity in the bank and finance market is leading to strong demand for innovative solutions, development projects and industry-specific consulting services.

As previous announced, the company is in the process of implementing a cost saving program, and the first phase was carried out in the second quarter. The company is working to adjust the cost base of its operating services organisation in Norway, as well as making some adjustments to its Swedish activities. This will be achieved by accelerating work on the introduction of new industrialised delivery models that make greater use of automation. In parallel with this, customers are making greater use of self-service solutions. These developments pave the way to simplifying the company's organisation and reducing its overhead costs. In addition to the program of work to improve efficiency, EVRY will make some reductions to capacity in units that are experiencing weak demand.

In the second quarter, EVRY secured renewals of its long-term contracts with the largest customers for its comprehensive banking solutions, and continuing collaboration with these banks on the development of banking solutions is expected to lead to sound future growth for the banking segment in general. In other areas of the company's focus on private sector industries, we see good prospects for growth driven by the general trends described above. In the public sector, the healthcare market will continue to be the most important area of growth this year, while at the same time work continues on long-term plans to position EVRY in readiness for a number of large assignments that are expected to be put out to tender in 2015.   

This information is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Contact persons:
Terje Mjøs, CEO EVRY, Tel: +47 06500
Knut E. Røsjorde, CFO EVRY, Tel: +47 95205786
Geir Remman, VP Corporate Communications, EVRY, Tel: + 47 970 55 017

About EVRY
EVRY is one of the leading IT companies in the Nordic countries, with a strong local and regional presence in 50 Nordic towns and cities. Through its knowledge, solutions and technology, EVRY contributes to the development of the information society of the future, and so creates value for the benefit of its customers and for society as a whole. EVRY combines in-depth industry knowledge and technological expertise with a local delivery model and international strength.

EVRY has some 10,000 employees, and the company is committed to demonstrating that Nordic customers are best served by a supplier that understands Nordic business from the inside. EVRY reports annual turnover approaching NOK 13 billion. The company is listed on the Oslo Stock Exchange and operates from headquarters at Fornebu in Bærum, with major activities in both the Norwegian and Swedish markets.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

2nd quarter 2014
Presentation of 2nd quarter 2014


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Source: EVRY via Globenewswire
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