Norwegian IT services company EDB Business Partner ASA claims to be beginning to turn around its business after posting a pre-tax profit for the first half of 2004.
Oslo, Norway-based EDB has reported a profit before tax of NOK 369m ($53.8m) for the six months ended June 30, 2004, up from a loss before tax of NOK 43m ($6.3m) last year. This was on revenue that fell 4% to NOK 2bn ($291m) over the year.
The sale of EDB’s telecoms development unit to Accenture Ltd in March, as part of a NOK 4.5bn ($656m) infrastructure management deal with telecommunications provider Telenor AB, has boosted the company’s bottom line by NOK 300m ($43.7m). However, EDB would still have made a small profit without that cash injection. Revenue would have grown 9.1% year-on-year if adjusting for the sale, claims EDB.
The company retained its cautious approach to the coming year, forecasting growth in the Norwegian IT services market to be at 4% with, outsourcing growing at 6% between 2003 and 2004.
The first half of the year marks the conclusion of EDB’s turnaround process. Renewed customer confidence, a stronger financial position and a better motivated organization provide the basis for more aggressive growth, said CEO Endre Rangnes. The challenge we face going forward is to expand into new segments and create a broader geographic platform. This will now be the number-one focus area for us.