NNIT delivers organic revenue growth of 6.3% and an operating profit margin of 9.8% in the first nine months of 2016.
Performance highlights for the first nine months of 2016
- Revenue increased by 6.3% to DKK 1,996m in reported currencies and by 6.4% in constant currencies
- Operating profit margin was 9.8% in reported currencies and 9.3% in constant currencies compared with 9.4% in 9M 2015
- Operating profit increased by 11.0% to DKK 196m in reported currencies driven by IT Operation Services
- Net profit decreased by 0.6% to DKK 144m mainly due to loss on currency hedges, a negative value adjustment of the Novo Nordisk shares used to hedge NNIT's long term incentive program before 2015 and an increase in the effective tax rate
- Free cash flow was DKK 118m in line with 2015
- Order backlog for 2016 at the beginning of Q4 2016 increased by DKK 179m to DKK 2,662m which is a growth of 7.2% compared with the order backlog for 2015 at the beginning of Q4 2015
- Outlook for 2016 in constant currencies is maintained with a reduced level of investment:
- Revenue is forecasted to grow 5-8% in constant currencies, whereas revenue growth in reported currencies is expected to be around 0.1pp lower based on the 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 0.5pp higher based on the current exchange rates
- The expected level of investments in 2016 is reduced from 6-7% to around 6% of total revenue as investments related to an additional data center will have limited impact on 2016
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Per Kogut, CEO at NNIT comments: "The robustness of NNIT's business is confirmed by the results for the first nine month, demonstrating our ability to deliver consistent and profitable organic growth in accordance with our guidance. Continuously growing our business outside the Novo Nordisk Group, we stand prepared to meet our targets of 5-8% growth for this year, and have posted a 10% profit margin for Q3, which is a testament to the steady profitability provided by NNIT's unique operating model."
Financial Calendar 2017
| January 24, 2017 | Deadline for NNIT shareholders to submit resolutions to be considered by the Annual General Meeting |
| January 25, 2017 | Full year report for 2016 |
| March 8, 2017 | Annual General Meeting |
| May 18, 2017 | Interim report for the first three months of 2017 |
| August 16, 2017 | Interim report for the first six months of 2017 |
| October 26, 2017 | Interim report for the first nine months of 2017 |
Conference call details
NNIT will host a teleconference October 26, 2016 at 10:30 CET about the financial report for the first nine months of 2016. Please visit the NNIT webpage at www.nnit.com (http://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.
Enquiries
Investor contacts:
Jesper Wagener, Head of Investor Relations: +45 3075 5392, jvwa@nnit.com (mailto:jvwa@nnit.com)
Media contacts:
Rikke Dalager, Head of Communications: +45 3077 8080, rida@nnit.com (mailto:rida@nnit.com)
About NNIT
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, 2016 NNIT A/S had 2,790 employees.
For more information please visit www.nnit.com (http://www.nnit.com/).
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: NNIT A/S via Globenewswire
