24Seven Technology Group ASA financial report 3Q 2011
Successfully completed all non-core divestments and new strategy implementation on track according to guided plans.
Revenue in 3Q11 ended at MNOK 12.7, compared to MNOK 14.9 in 3Q10. The reduced revenue is due to divested business divisions and termination of the non-strategic agreements. Operating profit before depreciation (EBITDA) ended at MNOK 1.
The results in 3Q11 are still influenced by our strategic decision to focus on larger customers, partner distribution and internationalization of our core business areas, SaaS Software and SaaS VoIP. The company has previously communicated to the market that the new focus will come at the expense of growth throughout the fiscal year 2011. The previously announced goal to reach positive EBITDA within 1H12 is on track.
As a result of our new strategy the company signed an important strategic agreement with the Norwegian Institute of Public Accountants (DnR) and won its first public tender, with the Swedish Trafikverket (the Swedish Transport Administration). DnR and the previously announced PwC contract represent a high growth potential for 24SevenOffice. We are already experiencing an increased demand for our solutions, and the contracts will lay an important foundation for increased future growth, according to our plans and strategy.
Highlights:
- Successfully completed divestments of all non-core business areas, and bought the remaining minority shares and of Oyatel AS, which is now 100% owned by the company.
- Strategic agreement with DnR, and 24SevenOffice became their recommended system targeted towards their approximately 5000 members.
- Won our first public tender in Sweden with Trafikverket (the Swedish Transport Administration), the agency responsible for all modes of traffic: traffic on roads and railways, on the sea and in flight in Sweden.
- The cross browser accounting module is in production at selected customers. This is the largest current project conducted by the company.
- Completed capital expansion, and issued 3,599,835 TFSO shares at NOK 4.50 per share.
- Bought the remaining 39.38% of Oyatel AS, and issued 1,685,934 TFSO shares as final settlement.