Increased efficiency drives earnings growth
The Company’s streamlined cost base continued to
generate significant savings during the third quarter.
Allied with improved operating margins, this led to
significant profit growth. Earnings before interest,
tax, and exceptional items (EBIT) rose to €21 million,
and EBIT margin to 22 percent. Earnings before tax
(EBT) climbed by more than one third to €21.9 million.
Earnings per share nearly doubled, climbing to
€0.47 (€0.24 in Q3 2003). Consolidated net profit
increased to €12.7 million (€6.5 million), or 13 percent
As a result of a marked upturn in high-margin
license sales, EBITA quadrupled in Central and Eastern
Europe to €4.2 million. In the Americas region,
operating earnings, at €9.2 million, remained at
2003 levels, in spite of a dip in revenues. Investment
relating to the penetration of the South American
market, combined with increased R&D spending to
localize solutions for the Spanish market, led to
EBITA slipping in the Southern and Western Europe
region to – €0.6 million (€1.7 million in Q3 2003).
In Northern Europe, Asia/Pacific, South Africa, operating
earnings fell by €0.9 million to €4.0 million.