NNIT delivers organic revenue growth of 7.7% and an operating profit margin of 10.5% in Q1. Based on a strong cash flow, NNIT expects to pay out an interim dividend in August 2016.
Performance highlights for Q1 2016
- Revenue increased by 7.7% in both reported and constant currencies to DKK 663m
- Operating profit margin was 10.5% in reported currencies and 10.3% in constant currencies compared with 10.3% in Q1 2015
- Operating profit increased by 10.2% to DKK 70m in reported currencies due to a strong development in IT Operation Services
- Net profit decreased by 11.8% to DKK 51m mainly due to a negative value adjustment of Novo Nordisk shares used for hedging of NNIT's long term incentive program for previous years
- Free cash flow increased by DKK 96m to DKK 131m mainly driven by a positive change in working capital
- Order backlog for 2016 at the beginning of Q2 2016 increased by DKK 137m to DKK 2,275m, corresponding to 6.4% compared with the order backlog for 2015 at the beginning of Q2 2015. However, since the start of Q2 2016 NNIT has won significant contracts with Danske Bank and a new customer outside the Life Sciences segment both representing a medium-size three-digit DKKm amount
- Outlook for 2016 in constant currencies:
- Revenue in constant currencies is forecasted to grow 5-8% (previously at least 5%), and revenue growth in reported currencies is expected to be 0.3pp lower (previously 0.0pp lower) based on current exchange rates
- Operating profit margin is forecasted to be 10-11% in constant currencies, whereas, operating profit margin in reported currencies is expected to be around 0.6pp higher (previously 0.3pp higher) based on current exchange rates
Based on a strong cash flow NNIT expects to pay out an interim dividend in August 2016 of DKK 48.5m in cash equal to DKK 2 per share of a nominal value of DKK 10.
Per Kogut, CEO at NNIT comments: "The results confirm that NNIT is a robust company that delivers according to expectations. In a mature market with modest growth and fierce global competition, it is particularly promising to see NNIT achieving a revenue growth of 7.7% in Q1 2016. I am very proud of recent contract announcements with market leading companies that document trust in our business model and a desire for quality services."
Conference call details
NNIT will host a teleconference May 13, 2016 at 14:30 CET about the financial report for Q1 2016. Please visit the NNIT webpage at www.nnit.com to access the teleconference, which can be found under 'Investors - Downloads'. Presentation material will be available on the website approximately one hour prior to the start of the presentation.
Jesper Wagener, Head of Investor Relations: +45 3075 5392,firstname.lastname@example.org
Rikke Dalager, Head of Communications: +45 3077 8080,email@example.com
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 March 31, 2016 NNIT A/S had 2,573 employees.
For more information please visit www.nnit.com.