Atea Q2 2021 financial report and presentation
Atea reported record high revenue in the second quarter of 2021, as growing demand for IT products offset hardware supply constraints resulting from a global component shortage.
Strong demand across all product lines
Atea’s revenue in Q2 2021 was NOK 10,928 million - an increase of 7.8% in constant currency, with high growth in sales of both hardware and software. Currency fluctuations had a negative impact on reported growth, as revenue in foreign currencies was translated into a stronger Norwegian krone.
“Demand for IT infrastructure continues to show strong growth,” commented Atea CEO Steinar Sønsteby. “The COVID pandemic has led many organizations to accelerate their digital transformation, driving investment in information technology to enable remote work, adapt business models and automate operations. As employees return to the office, investment in on-premise IT infrastructure is also recovering, with a need to refresh equipment in the workplace and adjust to new ways of working.”
“Supply constraints arising from a global shortage of critical components have been a challenge for the electronics industry which has worsened in recent months,” added Sønsteby. “This has led to longer delivery times for many products and resulted in a high order backlog entering Q3. Atea has a very close partnership with its vendors, which allows us to manage the current supply shortages in the best way possible for our customers.”
Solid long-term profit trend
EBIT before share based compensation grew by 4.6% to NOK 243 million. EBIT growth in Q2 last year was exceptionally high due to short-term cost savings from temporary furlough programs and salary reductions implemented at start of pandemic. From Q2 2019 – Q2 2021, EBIT has grown by 41.9% through organic growth and operating efficiencies.
For the first half of 2021, EBIT before share based compensation grew by 75.3% from last year to NOK 449 million. EBIT after share based compensation was NOK 382 million, up 52.0% from NOK 252 million in the first half of 2020.
Turnaround in Atea Denmark
Atea Denmark continued to make major progress in its turnaround during the second quarter. Revenue increased by 19.4% to DKK 2,101 million in Q2 2021, with very strong sales growth across all lines of business.
Strong Financial Position
Atea had a positive net financial position (cash, less interest bearing debt) of NOK 405 million at the end of Q2 2021. Cash flow from operations was an inflow of NOK 582 million in the second quarter of 2021.
The interim report and presentation are available at:
https://www.atea.com/investors/financial-reports/
A webcast of management's presentation of the financial results is available at:
https://www.atea.com/investors/financial-reports/2021/webcast-q2-21/
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
About Atea
Atea is the leading supplier of IT infrastructure in the Nordic and Baltic regions. Atea is present in 84 cities with over 7,000 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 40 billion (EUR 4 billion) in 2020 and is listed on Oslo Stock Exchange. www.atea.com