A Record Quarter
- A solid second quarter contributed to rounding of 700 million in revenue for the first half of 2018. The strong international growth combined with improvements in the Norwegian operations contributed to yet another record quarter for Data Respons, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
Operating revenue for the second quarter was NOK 356.6 million (311.6), a growth of 14 %. EBITDA amounted to NOK 32.6 million (23.1). EBIT was NOK 25.3 (20.0). Profit for the period was NOK 14.1 million (2.6) and EPS of NOK 0.24 (0.03). Data Respons had a cash flow from operating activities of NOK 55.8 million (47.6) in the quarter.
Operating revenue for the first half year was NOK 709.5 million (605.1), a growth of 17 %. EBITDA was NOK 64.0 million (47.3). EBIT was NOK 52.2 (41.4). Operating cash flow was NOK 6.1 million (31.1).
Cross-industry focus on R&D spending
– The R&D Services segment continues the solid development with a growth of 37 % in the second quarter, whereof 23 % was organic. The main drivers continue to be high overall utilisation, a good inflow of new interesting technology assignments and several larger R&D projects. In addition, hourly rates are increasing across the board driven by the growing demand for our types of engineering competence.
Companies increase their development budgets as the need to both maintain and improve existing products in their portfolio grows, as well as making major investments in more modern and future-oriented technology platforms in order to keep up in the digital race. This creates a strong demand for computer engineers and specialist companies assisting businesses with this transformation. Most significantly, this applies to almost all businesses and industries, says Kenneth Ragnvaldsen, CEO of Data Respons ASA.
– Revenues in the Solutions segment was lower than last year, while profitability continues to improve. We have started a strategic transformation process to increase focus on software content, offer more value-add services in addition to a gradual shift in the portfolio towards more complex, high-end solutions. In total, this provides a more favourable revenue mix with higher margins and growth in EBITDA, although it might influence the revenue growth during transition period, says Ragnvaldsen.
Expect a good development ahead
– The first half of 2018 yielded record high revenues and profitability. The overall market outlook remains attractive and we see growth opportunities in all our key markets. Data Respons seeks to continue the growth through a combination of organic development and selective bolt-on acquisitions in the Nordics and Germany to strengthen our position as a complete technology partner for innovative tech start-ups to blue-chip global players, Ragnvaldsen concludes.
For further information:
Kenneth Ragnvaldsen, CEO, Data Respons ASA, tel. +47 913 90 918.
Rune Wahl, CFO, Data Respons ASA, tel. + 47 950 36 046