NNIT delivers revenue growth of 5.4% and an operating profit margin of 9.2% in 9M 2018 supporting the recent increase in revenue growth outlook after the acquisition of Valiance Partners Performance highlights for the first nine months of 2018 ...
NNIT delivers revenue growth of 5.4% and an operating profit margin of 9.2% in 9M 2018 supporting the recent increase in revenue growth outlook after the acquisition of Valiance Partners
Performance highlights for the first nine months of 2018
- Revenue from the international life sciences, public and enterprise customers all increased by more than 20%. However, due to a decline in revenue from the Novo Nordisk Group of 7.6% and finance customer group of 4.9% total revenue increased by 5.4% in reported currencies
- The share of revenue from the life sciences (excl. Novo Nordisk Group), enterprise, public and finance customer groups increased from 58% in 9M 2017 to 63% in 9M 2018, thereby reducing the dependency on the Novo Nordisk Group
- Operating profit margin was 9.2% in 9M 2018 in reported currencies compared to 7.9% in 9M 2017, which was impacted by a one-off settlement of DKK 33m in the public customer group
- Net profit of DKK 151m in 9M 2018 compared to DKK 126m in 9M 2017
- Free cash flow for 9M 2018 was DKK 116m compared to negative DKK 14m in 9M 2017
- Order backlog for 2018 at the beginning of Q4 2018 was DKK 2,846m, an increase of 5.0% compared to the same time last year. The backlog for the following two years increased by 9.8%
- Outlook for 2018:
- Expected revenue growth of 4-7% in constant currencies (changed with the company announcement 9/2018 on October 9, 2018 regarding the acquisition of Valiance Partners)
- Expected operating profit margin of 10-10.5% in constant currencies is maintained
- The expected level of investments in 2018 is 5-7% of total revenue (previously 6-8%)
Per Kogut, CEO at NNIT comments: “I am pleased to see continued strong revenue growth from the international life sciences, enterprise and public customer groups, all growing with more than 20% in 9M 2018. With the acquisition of the fast-growing IT-service provider to the international life sciences industry, Valiance Partners, and the solid 9M 2018 revenue development we have recently been able to increase our full year revenue guidance to 4-7% from previously 3-6%.”
Conference call details
NNIT will host a teleconference October 25, 2018 at 10:30 CET about the financial report for the first nine months of 2018. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under ‘Investors – Events & presentations’. Presentation material will be available on the website approximately one hour prior to the start of the presentation.
Conference call details
Participant telephone numbers:
Denmark: +45 3544 5583
United Kingdom: +44 20 3194 0544
Sweden: +46 8 5664 2661
United States: +1 855 269 2604
Financial Calendar 2019
January 24, 2019 Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting
January 30, 2019 Full year report for 2018
March 7, 2019 Annual General Meeting
May 14, 2019 Interim report for the first three months of 2019
August 14, 2019 Interim report for the first six months of 2019
October 24, 2019 Interim report for the first nine months of 2019
Contacts for further information
Klaus Hosbond Skovrup
Head of Investor Relations
Tel: +45 3079 5355
Tel: +45 3077 8141
NNIT A/S is one of Denmark’s leading IT service providers and consultancies. NNIT A/S offers a wide range of IT services and solutions to its customers, primarily in the life sciences sector in Denmark and internationally and to customers in the public, enterprise and finance sectors in Denmark. As of September 30, 2018 NNIT A/S had 3,155 employees. NNIT has approximately 400 clients of which around 150 are located outside Denmark. Some 20% are international life sciences clients (September, 2018). For more information please visit www.nnit.com.
Source(s) : NNIT A/S
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