Atea reported higher operating profit during the third quarter of 2023, driven by solid growth in software and services and an increase in gross margin. Hardware sales fell from a very strong comparable period last year, but gross margins on hardware sales improved.
Gross sales in Q3 2023 increased by 2.3% to NOK 10.7 billion. Revenue (IFRS) fell by 4.2% to NOK 7.7 billion. Currency fluctuations had a positive impact of 5.4% on revenue growth in Q3 2023.
Software revenue grew by 11.4% and services revenue grew by 11.2% from last year, while hardware revenue fell by 9.7% from an exceptionally strong comparable period in Q3 last year. Over a two-year period since Q3 2021, hardware has grown at a rate of 7.5% per year (CAGR) and total group revenue has grown at a rate of 9.0% per year.
Gross profit grew by 9.6% to NOK 2,282 million. Gross margin increased to 29.5% in Q3 2023, up from 25.8% last year, due to improved hardware and services margins and a higher proportion of software and services in the revenue mix.
EBIT in Q3 2023 was NOK 298 million, up 5.1% from last year. EBIT margin increased to 3.9%, up from 3.5% last year.
Net profit after tax was NOK 182 million in Q3 2023, compared with NOK 196 million last year. The difference was primarily due to higher interest costs relative to last year.
Cash flow from operations was an outflow of NOK 301 million in Q3 2023, in line with historic seasonal trends. During the last four quarters, Atea has generated cash flow from operations of NOK 1.9 billion. Atea finished the quarter with a net debt of NOK 171 million as defined by its loan covenants, down NOK 529 million from last year.
“Atea continued to increase its operating profit year-over-year in the third quarter, despite a very strong comparable sales period last year. This was due to higher margins in Atea’s business and solid growth in software and services,” commented Atea CEO Steinar Sønsteby. “Our company is managing well in a market environment which is less favorable than one year ago.”
The interim report and presentation are available at:
A webcast of management's presentation of the financial results is available at:
For further information, please contact:
Steinar Sønsteby, CEO Atea ASA, mobile (+47) 930 55 655
Robert Giori, CFO Atea ASA, mobile (+47) 934 09 188
Atea is the leading supplier of IT infrastructure in the Nordic and Baltic regions. Atea is present in 88 cities with over 8,000 employees in Norway, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia. Atea delivers hardware and software from leading global vendors, and provides consulting and technical services to support its customers with the design, implementation and operation of their IT environments. Atea had revenue of approximately NOK 32 billion (EUR 3.2 billion) in 2022 and is listed on Oslo Stock Exchange. www.atea.com