Itera (ITERA) Q2 2024 earnings summary

Executive summary

• Organic revenue growth was flat at 0% year-over-year in Q2 2024, with EBIT margin improving to 9.4% and EBITDA margin at 13.1% due to business optimization.

• Major contract wins included a NOK 60 million digital core project, new agreements in cloud and financial services, and expansion in AI capabilities.

• Recognized internationally for contributions in Ukraine, receiving the International Flagship Project Award and leading reconstruction initiatives.

• Cash flow from operations was NOK 27.2 million in Q2, with a 12-month rolling EBITDA-to-cash conversion of 72%.

• Ordinary dividend of NOK 0.40 per share paid in June, with authorization for a supplementary dividend.

Financial highlights

• Q2 2024 operating revenue was NOK 224.1 million, flat year-over-year; H1 2024 revenue was NOK 452.6 million, down 1%.

• Q2 2024 EBITDA was NOK 29.4 million (+12%); margin 13.1%.

• Q2 2024 EBIT was NOK 21.1 million (+15%); margin 9.4%.

• Gross profit down 2% in Q2 due to higher third-party cloud revenues.

• Cash and cash equivalents at quarter-end were NOK 29.5 million, down from NOK 52 million a year ago.

Outlook and guidance

• Market remains soft but shows signs of improvement, with growing sales pipeline in AI, cloud, and digital transformation.

• Focus on business optimization, cost control, and profitable growth, with readiness to scale cloud and AI opportunities.

• Anticipated demand growth in 2025, driven by cloud migration and AI adoption.

• Ambition to restore EBIT margin to 12% or higher as utilization improves.