“We continue to deliver solid financial results with first quarter of 2008 showing impressive operating profit and margin improvements with an exceptional growth in services revenue for the Group,” says Claus Hougesen, CEO Ementor ASA.
Group EBITDA in first quarter 2008 ended at MNOK 102.0, an increase of 12.8% year-over-year, representing an EBITDA margin of 3.1%. Continued strong performance in services with growth of 23.9% year-over-year combined with improved gross margins on product revenue, up from 9.6% to 10.7% year-over-year, explains the main improvement in EBITDA.
The total revenue of MNOK 3255.5 represents a growth of 4.4% year-over-year despite Easter in Q1 2008 versus Easter in Q2 2007.
Q1 2008 financial performance by geographical segments
“The acquisition of Sonex Group established Ementor as the leading IT infrastructure player in the Baltic region,” says Claus Hougesen, CEO Ementor ASA. “The Nordic and Baltic markets will continue to experience a 5.1% growth in 2008 in IT spending according to industry analysts in spite of some downward forecast adjustments. With our local presence in 70 cities across the regions we are well positioned to take full advantage of this market potential.”
Norway
Norway continues to deliver strong performance in first quarter 2008 with an exceptionally strong operating profit of MNOK 34.4 up 72.9% year-over-year. EBITDA of MNOK 40.2 (4.9% margin) grew 48.3%, up from MNOK 27.1 in Q1 2007. Revenue grew by 10.6% and reflects strong growth in sale of both services and products, with all 10 cities in Norway performing according to or above expectations.
Denmark
Denmark continues to deliver strong performance and first quarter 2008 EBITDA ended at MNOK 40.7 (4.0% margin) up 11.8 % compared to MNOK 36.4 (3.7% margin) in the corresponding period last year. Continued strong increase in services revenue combined with product margin improvements explain the major improvement in results. Services revenue grew by MNOK 64.8 (41.0%) y-o-y with 88 billable consultants hired since first quarter of 2007. Total revenue grew by 6.2%, despite Easter effect.
Sweden
Sweden reports first quarter EBITDA of MNOK 22.4 (2.4% margin) which is up from MNOK 19.6 (1.9%) in the corresponding period last year. Total revenue is on same level with last year adjusted for currency and loss in employee home-pc sales due to legislative changes. Services revenue grew by 13.5% and demonstrates a strong demand for value-added services. New decentralised organisational structure combined with the implementation of the e-commerce solution eSHOP in Q1 is expected to strengthen sales and fuel product growth.
Finland
Finland reports first quarter 2008 EBITDA of MNOK 1.6 (0.4% margin) which is down from MNOK 8.3 (2.1% margin) in corresponding quarter in 2007. Revenue in first quarter was MNOK 355.7 which is down from MNOK 386.9 in 2007. Revenue growth and increased market pressure continues to be the main focus in Finland, which is a market with significant growth potential. New MD, Juha Sihvonen, has been engaged and will start May 1, 2008.
The Baltics
The Baltics report first quarter revenue of MNOK 110.1, up 10% versus Q1 2007. EBITDA ended at MNOK 3.5 (3.2% margin) which is up from MNOK 3.0 (2.9%) in first quarter 2007. More than 50% of revenue is directed to the public sector and large IT investments are expected within this sector in the coming years.
Outlook
“The acquisition of Tomato AS – leading virtualisation technology provider in Norway reflects Ementor’s constant focus on important technology trends.” says Claus Hougesen, CEO Ementor ASA. “Investments in new technologies and trends such as unified communications, virtualisation and Green IT will reinforce our position as the leading supplier of IT infrastructure products and services in the Nordic and Baltic region.”
Based on the continued strong financial performance in Q1 2008 and positive market growth rates for IT infrastructure, the Board remains confident in the viability of the strategic direction set by the company.
The quarterly report and presentation is available at
www.ementor.com/reports The press conference is available through webcast at
www.ementor.com/webcast The Stock Exchange Announcement is available at
www.ementor.com/ose
For further information, please contact
Claus Hougesen, CEO Ementor ASA, mob +45 25 43 51 62
Rune Falstad, CFO Ementor ASA, mob +47 906 14 482