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OSLO (Thomson Financial) - Ementor ASA posted first-quarter profits that
were ahead of expectations at both the pretax and operating levels, after demand
for IT services in the Nordic and Baltic regions led to a rise in margins.
For the first quarter, the Norwegian IT group posted pretax profits of 55.0
million Norwegian crowns, up from 44.1 million last year, and ahead of the 50.0
million consensus forecast of analysts polled by TDN Finans.
At the operating level, profits came in at 69.5 million crowns, up from 56.0
million the previous year and ahead of the 62 million consensus forecast.
EBITDA was 100.2 million crowns, up from last year's 78.2 million, while the
EBITDA margin rose to 3.1 percent from 2.8 percent for the same period a year
ago.
"We continue to deliver solid financial results with the first quarter of
2008 showing impressive operating profit and margin improvements with an
exceptional growth in services revenue for the group," said chief executive
Claus Hougesen.
Ementor said EBITDA growth was explained by continued strong service revenue
growth of 23.9 percent year-on-year combined with improved gross margins on
produce revenues, up to 10.7 percent from 9.6 percent previously.
The group said Norway and Denmark in particular continued to deliver strong
performances.
The Baltics reported revenue of 110.1 million crowns compared with 102.5
million crowns previously, up 7.4 percent.
More than 50 percent of Baltic revenues were sourced from the public sector
and large IT investments are expected within this sector in coming years, the
company said.
Looking ahead, Ementor was bullish. It said the Nordic IT industry will,
according to industry forecasts, experience positive growth rates of 4-5 percent
during the 2008-2010 period, in spite of some minor downward adjustments.
Growth rates in the Baltics are expected to be around 10 percent.
"Important technology trends... will also help fuel IT investments going
forward," Ementor added.
The group also hinted heavily that it could participate in mergers and
acquisitions in the sector.
"In addition to organic growth potential for the group, a fragmented IT
infrastructure market continues to provide interesting acquisition growth
opportunities," Ementor said.
Ementor shares had slipped slightly at 10.30 am, down 0.26 percent to 38
crowns - but outperforming the overall market, whose benchmark OSEBX index was
weaker by 0.8 percent to 453.1.
patrick.mcloughlin@thomsonreuters.com
pm/jrr
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