Atea reported higher operating profit (EBIT) and net profit in the first quarter of 2024, driven by solid growth in software and services and an increase in gross margin.
Revenue was NOK 7.6 billion, down 12.5% from an exceptionally strong comparable period last year. Software revenue grew by 8.4% and services revenue grew by 3.7% from last year, while hardware revenue fell by 19.5% from abnormally high volumes last year.
Over a two-year period since Q1 2022, hardware has grown at a rate of 1.4% per year (CAGR) and total group revenue has grown at a rate of 4.9% per year.
Gross margin increased to 33.6% in Q1 2024, up from 28.9% last year, based on higher margins in all business lines and an increased proportion of software and services in the revenue mix.
EBIT in Q1 2024 was NOK 256 million, up 2.2% from last year. EBIT margin increased to 3.4%, up from 2.9% last year. Net profit after tax was NOK 192 million in Q1 2024, up 9.6% from last year.
“Atea increased its operating profit in the first quarter of 2024 from a very strong comparable period last year. The industry expects that demand for IT infrastructure will pick up throughout 2024. During the remainder of the year, we expect to achieve higher revenue and faster profit growth, based on improved market conditions, new customer agreements and easier comparable periods last year,” commented Atea CEO Steinar Sønsteby.
The interim report and presentation are available at:
www.atea.com/financial-reports/
A webcast of management's presentation of the financial results is available at:
www.atea.com/financial-reports/2024/webcast-q1-24/
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 88 cities with over 8,000 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 35 billion (EUR 3.1 billion) in 2023 and is listed on Oslo Stock Exchange. www.atea.com