NNIT delivers organic revenue growth of 6.2% and an operating profit margin of 9.6% in the first six months of 2016.
Performance highlights for the first six months of 2016
- Revenue increased by 6.2% in reported currencies to DKK 1,321m and by 6.3% in constant currencies
- Operating profit margin was 9.6% in reported currencies and 9.1% in constant currencies compared with 9.2% in 6M 2015
- Operating profit increased by 10.6% to DKK 126m in reported currencies primarily in IT Operation Services
- Net profit decreased by 1.3% to DKK 93m mainly due to a negative value adjustment of Novo Nordisk shares used to hedge NNIT's long term incentive program before 2015
- Free cash flow increased by DKK 58m to DKK 99m mainly driven by a positive development in working capital in the first three months and a lower investment level
- Order backlog for 2016 at the beginning of Q3 2016 increased by DKK 182m to DKK 2,522m, corresponding to 7.8% compared with the order backlog for 2015 at the beginning of Q3 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 (previously 0.3pp 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 (previously 0.6pp higher) based on the current exchange rates
- The expected level of investments in 2016 is reduced from 7-8% to 6-7% of total revenue as investments related to an additional data center are only to a limited extend expected to impact 2016
- The Board of Directors has decided to pay an interim dividend for 2016 of DKK 2.00 per share corresponding to DKK 48.5m
Per Kogut, CEO at NNIT comments: "The results for the first six months confirm NNIT's ability to deliver consistent and profitable organic growth in accordance with our guidance. I am particularly encouraged by the trust shown in NNIT by several market leading companies resulting in a number of significant contract announcements during Q2. They solidify our order backlog for 2016 and document a steady demand for the high-quality services we provide."
Financial Calendar 2016
August 22, 2016 Interim dividend ex-dividend date
August 23, 2016 Interim dividend record date
August 24, 2016 Interim dividend payment date
October 26, 2016 Financial statement for the first nine months of 2016
Conference call details
NNIT will host a teleconference August 16, 2016 at 10:30 CET about the financial report for the first six months of 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, email@example.com
Rikke Dalager, Head of Communications: +45 3077 8080, firstname.lastname@example.org
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 June 30, 2016 NNIT A/S had 2,616 employees.
For more information please visit www.nnit.com.