Q2 2024 Itera ASA Earnings Call Transcript
Key Points
- Itera ASA (STU:IRI) reported a significant win with an estimated value of NOK60 million to build the digital core for a major innovation industry company.
- The company was recognized with the International Flagship Award by the Ukrainian government for its efforts in Ukraine, highlighting its strong international presence and commitment.
- Itera ASA (STU:IRI) has successfully implemented a business optimization program, resulting in a 1.2 percentage point margin improvement.
- The company maintains a strong cash flow, with NOK27 million generated in the quarter and NOK73 million over the last 12 months, supporting its ability to pay dividends.
- Itera ASA (STU:IRI) has a robust recurring revenue base, which grew by about 4% in the second quarter, indicating stability in its revenue streams.
- Itera ASA (STU:IRI) experienced flat organic growth in the second quarter, indicating challenges in expanding its business.
- The order intake for the quarter was 0.7, reflecting a decrease compared to the last 12 months' book-to-bill ratio of 1.0.
- The company's gross profit decreased by 2% in the second quarter, partly due to increased third-party revenues and associated costs.
- Itera ASA (STU:IRI) reduced its workforce by 4%, or 28 people, which may impact its capacity to scale operations quickly.
- The company's share price has decreased by 18% over the past four months, reflecting market challenges and investor concerns.
Good morning, everyone. Welcome to the second-quarter interim presentation for Itera. We have the same agenda. I will start with the highlights of the quarter and go into the business review section. Then we have Bent Hammer, our Chief Financial Officer, that will deep dive into the financial review and also some comments about the outlook.
(Event Instructions)
Okay. Let's go back to the highlights for the second quarter. If we look at the financial figures in brief, we have a flat organic growth in this quarter. And you see that the EBIT margin for this quarter is 9.4%, and that's also our connect to the market. I will start with saying some comments about the market.
We have seen that the pace of spending is somewhat mixed, but fundamental importance over digital technology has not, I will say, so there is still a strong demand in the different sector like the green transition, of course, but also in areas like cloud migration and modernization, data security, and AI.
In this quarter, I think we see some improvements
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