Earnings call transcript: Itera Q2 2025 sees revenue decline, stock dips

Itera reported its second-quarter earnings for 2025, revealing a revenue of NOK 202.9 million, a decrease of 9% compared to the previous year. Despite a challenging market environment, the company maintained a stable employee count and continued to focus on operational efficiency. The stock fell by 4.65% in the wake of the earnings release, closing at NOK 8.62. According to InvestingPro data, the company maintains a healthy financial position with a GOOD overall health score and operates with moderate debt levels. The company’s earnings per share (EPS) forecast stood at 0.1904 USD, but the market’s reaction indicates concerns over the declining revenue and market uncertainties.

Key Takeaways

• Revenue decreased by 9% year-over-year to NOK 202.9 million.
• Stock price dropped by 4.65% following the earnings announcement.
• 18% of Q2 revenue was generated from new customers.
• The company is focusing on AI integration and exploring new markets like Ukraine.

Company Performance

Itera’s performance in Q2 2025 reflects the broader challenges within the IT services sector, characterized by longer sales cycles and reduced market visibility. Despite these hurdles, the company managed to maintain its workforce and operational efficiency. Notably, Itera secured 18% of its quarterly revenue from new customers, a significant increase from the typical 4-6%, indicating successful market penetration efforts.

Financial Highlights

• Revenue: NOK 202.9 million (9% decrease year-over-year)
• EBIT: NOK 4.4 million (decreased from the previous year)
• Cash Flow from Operations: NOK 20.8 million

Earnings vs. Forecast

Itera’s earnings per share (EPS) forecast was 0.1904 USD, with no revisions in the past 90 days. However, the market’s reaction suggests concerns over the revenue shortfall and the company’s ability to meet future earnings expectations.

Market Reaction

Following the earnings release, Itera’s stock dropped by 4.65%, closing at NOK 8.62. This decline reflects investor skepticism about the company’s revenue decline and market challenges. The stock’s performance is within its 52-week range, with a low of NOK 8 and a high of NOK 12, indicating moderate volatility.

Outlook & Guidance

Looking ahead, Itera remains optimistic about market recovery and plans to capitalize on AI integration and new opportunities in Ukraine. The company is targeting revenue growth and margin expansion, with a focus on sectors such as cloud transformation and digital platforms for reconstruction efforts.

Executive Commentary

CEO Arne emphasized the importance of AI, stating, "AI is really taking huge steps in our industry." CFO Ben Theimer expressed confidence in overcoming current challenges, saying, "We believe we are over the worst slump now." Arne also highlighted the potential of the Ukraine market, noting, "Ukraine is really a big opportunity for Eterra."

Risks and Challenges

• Market uncertainty and longer sales cycles could impact revenue growth.
• Dependence on new customer acquisition may not be sustainable long-term.
• Potential geopolitical risks in new markets like Ukraine.
• Competition in the IT services sector remains intense.
• Economic conditions in key markets could affect demand.

Q&A

During the earnings call, analysts inquired about the decline in the financial services sector and the company’s diversification strategy. Executives explained their focus on expanding into energy and public sectors, as well as the potential for significant revenue from the "Enter Ukraine" initiative.

Full transcript - Itera (ITERA) Q2 2025:

Arne, CEO, Eterra: Report for Eterra for the second quarter. We have the same agenda as previous quarters. I start with the highlights of the quarter and then go into the business review section and then Ben Theimer, the chief financial officer will go into the financial review section and then we are together on the last part which is outlook. And of course, we also have a q and a session. It’s possible for you all the guys on on that I am attending today that you can also post a question that we will look at the end and and end of the presentation.

And if there are any kind of more specific deep tie you would like to do, we can also arrange a separate meeting for that. Okay. So let’s start with the highlights for the second quarter. I will just start with the financial part because our financial performance is still affected by the soft market. We see all the uncertainty and the geopolitical discussion.

So that’s still also impacting our industry. So what we also in this quarter, just to remind you that in the second quarter this year, we had the easy period while it was in the first quarter last year. So that’s always has some kind of seasonality impact on the financial performance. What I also would like to mention which I think is extremely important also when there’s a soft market is actually that we achieved record high revenue from new customer because not all the existing customer growing in the same pace that it was when this was a more normal market, but we have managed to really increase the new numbers of customer, which is also important that we have a larger customer base to continue the growth. So that is something I will also deep dive during my session.

The second topic I would just want to put your attention on is actually the Enter Ukraine with Iterra initiative that we have talked about that also start to have impact of Iterra. And the focus in this quarter is actually that we also are taking huge step into the defense sector. So the Enter Ukraine program or initiative is actually based on a quite interesting business model where we have both consultancy, billable consultancy, but we also have some quite interesting risk reward models. I’ll go go back to a little bit more about that later in this presentation, but we really have strong progress in that area. And the last but not least, of course, because of the market situation, we also need to continue improving our effectiveness in the company and one of the big opportunities here is actually to apply AI internally in the processes, but we also need to continue looking at the overhead and operating expenses of the group to even optimize even further.

So these are the three main topics for this quarter. Okay, if I look at the figures in brief, as I said, the Easter was in the second quarter. So we achieved million, which is year over year minus 9% compared to NOK224 million this second quarter last year. And that also have impact on the EBIT margin that was 2.1% for the quarter. In average for the first year, we have about 5.9%.

And also if you look at the revenue stream, it’s actually decline of 4% in average because if you take the first half year, you can have more comparable figures with the previous year. If we look at the operational cash flow, it hasn’t been that impacted by the decline on the growth. So we still have very strong operational cash flow of million compared to SEK 76,000,000 in the previous quarter. So operational cash flow is still very strong in Iterra and that’s one of the key focus. So we managed to continue paying the dividends for your shareholders, right?

And also the number of employees has been quite more or less flat, I will say it’s about seven zero two. So we still also need to adjust the capacity to make sure that we have the capacity needed according to the growth figures that we see today. Okay, some comments about the market view. As I said, there’s still the demand is of course depending on the uncertainty in the market. I think that’s also quite common for most of the players in our industry.

So it’s that means that this longer sales cycles and also reduced visibility. So that’s for sure. There are some years that are growing quite well, is also, for example, the cloud native, the current cloud transformation and the data driven solution and now with more and more AI capabilities. So we also see that in Eterra that we also in terms of what we have called the cloud application center or cloud application services in Itera is quite showing quite interesting growth figures. So some part of the business is growing quite well and others we need to adjust and be more careful with the capacity going forward.

And as I mentioned, defense of course of the security situation in Europe. Defense has become a very high growth markets where also ETR taking big steps into that, not at least also driven by the situation and the war in Ukraine. So that’s some topics I just want to mention in the beginning. So I go more deep dive into the business review sections. As you see, we as a company are based on Nordic routes with quite interesting European presence.

We have been in Ukraine for seventeen years and stay together with Ukraine. Ukraine is really a big opportunity for Eterra because, you know, it’s for it’s a responsibility to support in the fight for our freedom, but also not at least Ukraine is also very interesting area to take an insights from different transformation or innovation they have achieved in different sector and bring it to Europe. So it’s also have a lot of business opportunities by supporting Ukraine and that is also part of the mission. If I go to the business model we have in Eterra, this is something we present in the first quarter that we are saying that we have two main offers. One is actually the classical digitalization services where we focus on financial services, energy and industries, public sector and now also extended with defense and airspace.

Airspace is also very related to defense, that’s why we combine it into one area. And the other one is actually the responsible business where we provide expert advisory service for businesses that are seeking to enter, rebuild and learn from and and not at least protect Ukraine. And that’s why we have this enter Ukraine with the Terra initiative I will return back to you shortly. Okay, so let’s start with digitalization services. I just want to put your focus on the sector development of Eterra because if you look at the three largest sector of Vitera, have the financial services as you see, has been the largest one, but now we see a little reduced to 40%.

I think that’s a big share and quite interesting because we are increasing energy and energy, which is almost 25% and then we have more or less a flat share of the revenue connected to the public and organization. And you see the orders are also increasing and orders are also where we have today the defense sector retail. So we will also after a while, I think we will also increase the public and organization because I think that will also contain the the defense sector lately later. So in any way, the reason for having this sector focus is actually that we get deep insights about the industry and make and then it’s much easier to, you know, combine the business knowledge and all the digitalization services to help the customer in the transformation to a more efficient and also more innovative company. One of the key topics in our industry, but all over the place, I will say is AI and I just want to mention that AI is also really taking huge, huge steps in our industry.

We talked about and I think everyone know everything about some kind of assistant. You have the co pilot or whatever. But now we are also having what we call agents, which is digital agents or AI agent, whatever you call it, that really also redefine how we build our software because in in digital agent is actually, I will say, some kind of software based entity that can perform task or make decision or interact with users and other systems. So what we see is actually that around each human or each person there will be we call it agents that extend the people capabilities by having software that develop or perform task on behalf of the human being or make decision on behalf of the being by and you see that we are talking about going forward there, we are talking about human agent ratio. So for each person, there will be also another virtual person or software that support that person into more efficient or doing more with less what we talked about earlier.

So this is really a big step for the industry in building the software but not that also the impact that the software have on every industry. So for Iterra as a as a digital company, we it’s extremely important to embed AI all over the place in Iterra. So what we have done in Iterra during the quarter is actually we have established a group wide AI enabled team to empower every part, every every, you know, person in the Terra to get the knowledge and the tools that are that are needed and we are also building some very interesting tools in, for example, the area of how we analyze the complexity of the software portfolio of the customer and how we can use this to actually help the customer to accelerate the transformation into a cloud and and and cloud environment where we have much more innovation in terms of capability than they have on on the traditional classicals on premise environment. So this is of course extremely important. We are also using this in order to improve the efficiency of Vintera.

So we can also use a lot of these processes of this kind of tooling or agents into in our internal processes so we can be even more effective. That is what we also talked earlier today about the improving the the operational effectiveness of So we need to also use this kind of technology to be even more effective in Eterra. Then I switch to some of important milestone for Edithera. One is actually we managed to close the frame agreement with Stuttgart IT. Stuttgart is, as you know, one of the largest European renewable company and so we are very happy to sign a contract with Stuttgraft because this is a large opportunity coming forward.

So having this the agreement in place is much easier to Eterra to to provide our services for such a large international company. So that’s one of the major milestone in in this quarter. Another one, I will also mention that we also managed to win a frame agreement with Ballinor in the testing testing capability or area. So this is of course important step for Iterra to also piggyback or to establish a relationship with such a large company which also will go through a large digital transformation. So very happy that we also managed to build to win one of the categories that was in this frame agreement, a pretender.

So now we start also to build the relationship with Ballinor and also get another, you know, sector credibility. As I said in the beginning, it’s a 30% of the revenue of Vitera. So of course, this is another step to also build a stronger position in the public domain. And also, I just want to mention that if you look into international position of Eterra, I just also put your attention on Iceland, has been very successful for Eterra. In this case, we we have entered frame agreement with Digital Iceland for for web app app development, which is a multi year public sector engagement with quite large engagement.

What important is actually that we also build a relationship into the public domain in Iceland and we also having some other interesting partnership with the tech firm LagerViti and also we are joining the Icelandic energy cluster. So of course in Iceland, are really increasing our footprint with more customer also in the public sphere and what is also interesting is actually that we are also extending our local presence because we really see that this is really growing fast in the Terra group, but also we can support them with more local capabilities, so we can also grow even faster going forward. So that is one of the area despite the decline in the group. So I think Iceland is showing quite well progress. I just want to mention that.

And another one is actually Pelagia. This is in a cloud transformation topic. Mentioned mentioned the cloud application services over Tera is really improving. And one of the typical cases actually we help Pelarga in the seafood industry that having a lot of factories and is really highly effective in the operation, but most are running on premise environment. And now they will make some kind of transition in a smart way to clouds.

We’ve done this assessment and are looking forward to the next step where we are also, you know, transforming in a in a smart way the on premise into cloud operating model where we also integrate IT and auto system. So this is also another quite interesting case in that area where we have just done this kind of first assessment. So we’re looking forward for the next step to really move this transformation for the all the factories at Pelage into a cloud operating model. So that’s the first part. I call it digitalization services.

If I start, go into the other part, I call it responsible business just to make you understand what we are talking about for because this is also redefining Eterra because it’s a new business model where we have business advisory, billable business advisory on one hand, but we also have a risk reward model. So so we have after this this full scale innovation, we started, as you remember, with a lot of work effort for Ukraine, where for example bringing the bridges to Ukraine in 02/2002, 2022 and 2023. We have done energy supply by Bergen engine that have electricity generators that provide energy to Ukraine whatever. So these are some kind of example that already done. So what we see is actually that the portfolio of this kind of engagements really expanding.

In total, if I look at all the activity on the existing and the opportunities about this because we are almost talking about NOK 10,000,000,000. And this is something we have spent time on the last three and a half year and we are really see that it started to have impact on revenue. Still, we don’t have every quarter where we have this kind of additional revenue, but as long as the portfolio is increasing, we will have more sustainable model that brings in revenue every quarter. So one of the example, just to put your attention on that is actually we have talked about as a case and have been working together for almost two years and we have spent a lot of time together with we are doing some billable work for as a company. But in terms of this this major project for Muelven is actually to provide housing capabilities, building models, whatever from Muelven into Ukraine.

So what we have done in the first half year together with Uvalven is actually to make the first pilot in the Parodenko region, which is about one hour driving in a little north for for Kyiv, where they have built the first pilots as a free of charge for four apartments there. But what we managed to do now during the Ukraine Recovery Conference in in Rome, we managed to establish LOE between Vlasno Misto and Mordven in terms of delivering thirteen fifty facilities apartments, I mean, to a region in Lviv. So in this region, they are really building a future city of 47,000 people. So this is the first agreement where we will establish deliver 1,350 housing apartments to this region that are really building from scratch. So in this case, we have we have get got some billable consultancy, but now we are also starting to get some risk reward revenue because now they start into real projects where all the investment were done together with Muralven is starting to also pay off and be recognized in the revenue stream of Iterra.

So this is just to show you about this 10,000,000,000 portfolio that we have. So now we have 1,500,000,000.0 already in terms of contract and we will piggyback on that going forward. And in terms of the energy space, I think there is more than already in place almost SEK1 billion, so altogether SEK2.5 billion. So it’s about 25% of the portfolio is really in place with either already delivered services or that will also have impact going forward. So this is quite interesting going forward that this will also impact the revenue stream for Deterra.

By doing this, it’s not only for the risk sharing model, it also bring in value for all the kind of digitalization services. Another example is actually this partnership, Ukrainian Norwegian partnership that launches a platform for post war recovery to develop what we call the Blaho for Communities. It’s some kind of Ukrainian word. Blaho is actually, let’s say, welfare for communities. So we are building a digital platform for enabling transparent, targeted and very accountable support for reconstruction of small towns or in rural areas in Ukraine.

So we’re building these digital services, so all digital platforms so so all kind of donors are seeing that the value the donors that brings value to Ukraine is done in a very transparent, targeted, and accountable way. So this solution will be launched in October, so we have built this on scratch together with this and there will become some consultancy services going forward as long as this model will be successful in the market. So this is also another example of our support for Ukraine that also have revenue impact of Vitera going forward. I just also mentioned that also defense is extremely important sector for Vitera and we won’t make all the announcement with what kind of customer that we we we make agreement on because of the safety of being in Ukraine that is important that we we we we can’t tell anything about the very concrete stuff we are doing. But I will say that in this second quarter, we have made a frame agreement with one of the larger defense player in The Nordics.

So this is also an area where we can help the player and the industry itself in terms of delivering trusted and secured digital backbone or empower person and modernized facilities, whatever, as you see from the slide. So this is also based on the knowledge we have from, I will say, the most advanced, you know, warfare situation. We are we are piggybacking on this this experience and also make sure that when we’re building the European military sphere, we are also make sure that we are also modernizing everything based on all kind of learnings from the war in in Ukraine. And and also during our Nausicaa, which is the largest, I will say, the event where the where the politicians, business leaders, and NGOs, academy and the public in general are meeting discuss, you know, different kind of topics. So in this, during Arndal Zuka, we managed to have focus on on how Norway can learn from the war in Ukraine.

So on on my right side, you see the the the chief of the Norwegian army, Eirik Soforsen. We have representative from NATO. We have representatives from the politicians and also the head and the CEO of Kongsparri on the left side. So this is showing you that we as a company based on our presence and our enter Ukraine with the Terra capabilities really able to really bring this knowledge into the defense sector and also see how we can support the players when they take a position because they need to build more and more of the capability in Ukraine. So that’s just this is just to show you an example so that this kind of end to Ukraine with Eterra is is not only about the, you know, your material support.

It’s a responsible it’s very strong at Eterra as you know. This is one of the advantage that we have for the people and the customer that provide value or engage with Eterra, but we’re also looking at how we can extend the business dimension of it because Ukraine would like to have business. We need to keep the economy running. So so this is also from Eterra perspective. It’s nothing it’s not only supporting.

We need to also make sure that all the time we are spending on this is also adding value in our company. Okay. So let’s finish with some numbers that you already know before I let Benthammer go into the financial part. As you see, we have order intake of 0.8 in the second quarter. In average, we always need to look at this figure in average.

So the last twelve months, it was 1.1. So comparing to the revenue growth as I showed you, this is quite okay. For the time being, we would like to of course go to one point five, one point two, whatever. As you see some of the numbers, are new ones and others are existing ones. So this is quite interesting to look that we have very interesting company or customer in our portfolio.

As I mentioned, one of the key takeaway from this, look at the figures on the left side, share existing customer 82%, that means 18% of the revenue in the second quarter is based on new customer that we achieved the last twelve months. So we’re thinking about that, that’s the kind of number is more or less quite normal in the area of five four to 6%. In this quarter, we registered that we have 18% of the revenue which is new for Eterra. So that you also have impact on the top 30 customer which is down from 82% of share of the revenue to 73%. So they are not growing in the same pace as it was in the past and that’s why it’s so important to also extend the customer base with new customer.

So when you when the new when the when the market is actually maturing in a more normal way, will say both the existing customers that is 73%, but also this the existing 30% the top 30 customer represented 73% will also start growing faster. And then we have a lot much larger customer base so that should manage that the Terra come back into quite interesting growth pace. So so that’s just to make a comment on that and also if you look at employees is as you see, we are careful with hiring, we are reducing net by some people. We also see that there are some very large opportunities. So this is there might also be some increase depending on the contracts that we are seeing.

And as at least in some of the nearshore organization or some of the opportunities that we see in Ukraine, for example, we also believe we will scale up again after a period that we have downscale the capacity based on the demand in the market. So that I think was all from my end and then I hand over Benth Harmar that will bring us into the financial review section. Thank you.

Moderator/Facilitator, Eterra: Thank you, Arne, and good welcome. Welcome to you all.

Ben Theimer, Chief Financial Officer, Eterra: As Arne alluded to, we hope for a better quarter this quarter as the the trends that we saw emerging in in q one were were on the positive note. However, those those seem to take a dip after all the geopolitical and macroeconomic uncertainty reemerged again. So that coincided with with us having three major projects that employed some 20 plus consultants that coincidentally ended at the same time, which is really a normal course of our business. But because of the of the market at this point, it took some more time to redeploy these resources into into new assignments. So that meant we had a quite significant dip in our utilization in in the first part of the quarter and which only reemerged at the end of the quarter.

So entering to Q3 is at a better place than the last year, but the utilization isolated in Q3 sorry, Q2 was was below our expectations. So that meant we we ended up with a revenue of 202,900,000.0 in the quarter, which is 9% lower than last year. Part of that effect is the Easter effect which provides a fewer working days and as a lot of our revenue comes from from hourly work, the number of working days is is an important factor in terms of our ability to generate revenues. We yeah. So when we when we have the lower utilization that trickles down pretty much to the bottom line as well at least on a short term basis.

On the long term basis we’re able to adjust the organization but short term and when we have good prospects of of returning back to to better utilization, we will be, you know, part or temporarily stuck with with a higher cost base and that that is reflected in our EBIT of 4,400,000.0 in the quarter. Neutralized for the Easter effect, if we look at the h two, we have 25,400,000.0 in EBIT, which is though quite a bit below last year’s 40,300,000.0. There’s the soft market that we have experienced in the last couple of years has put pressure on the price on our our later rates. And and at the same time, there there’s this doesn’t seem to be so much pressure on on on the war for talent because there are a lot of companies in sourcing IT competence as well. So we we’re not only competing with with our competitors, but also other potential customers of ours for the for the same people.

So there is a pressure on on margins resulting from that. So that means we have to continuously look into our cost base and and become more effective. And AI is a is a tool also for us internally to to achieve that. Looking at the the sequential development. As you can see from the graphs, the the last couple of years has has not been very positive.

Not for for Ethera, but not for the marketplace as a whole. So the underlying demand for for IT services is is still great. There’s a lot of things that need to be digitized. In order to make proper use of AI. You have to have your data in order.

So there are a lot of projects out there that that we are waiting for for customers to embark on. So we have a lot of potential opportunities for for margin expansion as well as as revenue expansion related to to the the pipeline we see and just getting normal utilization again that there is a huge upside in terms of margins from that. And we have new markets for us that we have not fully gotten up to speed to explore yet. So so there are plenty of opportunities there. And then lastly, we have this entry Ukraine with the Terra initiative where we are uniquely positioned and that could that could provide us with with some some significant both revenues and and profits from that in in the next few years.

Looking breaking down the the revenue by by type, we see that the the main issue has been the the revenue from our own consultants, which is down 9% to 166,000,000. I think I’ve gone through the explanations for that. On the subscription side, we continue to to grow not much in this quarter, but that is a constantly growing part of our business. We had some some large projects involving subcontractors that stopped in in Q1. So revenue from third party services was actually down 50% compared to last year whereas we grew other revenue by 16% to 10,000,000.

So in other revenue, are there’s also things like Azure consumption that is on a steady growth path. Cash flow is is doing well. We delivered 20,800,000.0 from from operations in q two compared to 28,000,000 of last year. And for the the rolling twelve months, we’ve delivered 68,000,000 versus 76,000,000 in in the prior twelve months. We’re not investing much.

So this quarter, it was 2,700,000.0 compared to 1,900,000.0 in 2025 which I think was a bit lower than the normal so 2.7 is pretty much our normal rate. So we can see that for the last twelve months we’ve invested 9,600,000.0 versus 16,600,000.0 the year before. In terms of financing activities this is pretty much driven by dividends. So where we paid out a dividend of around 16,000,000 in in Q2, bit less than than the year before. And we’ve all in all we’ve spent 51,500,000.0 last twelve months on on financing activities versus 81,700,000.0 in the last twelve months.

If we compare this to our earnings, our EBITDA, we see that we have a very strong conversion of this into cash. In fact, this quarter we were above 100% and we can also see that we’ve had an upward trend in the last couple of years. But on average, some 90% conversion rates, which I think is very strong. It shows that we we don’t need a lot of working capital in order to to sustain our our business. And of course, this is is an important part of our our business because generating cash, free cash, means that we can repay our shareholders as fast as as possible to sustain our dividend policy.

And coming to this now, we paid an ordinary dividend based on the 2024 results of NOK 0.2 per share, and the board was again authorized to approve a supplementary dividend later in the year as we have been accustomed to over the last several years. Share price has had a poor development in the last year for us and many of our competitors as well unfortunately. So that that’s a part of the sentiment in the market, I guess, that it’s been on the slow side for a couple of years now. So it’s if we include the dividend payments, it’s down 15% at the June. We hold ourselves a bit shy of a half million own shares in stock.

So that’s it for the financials for Q2. Looking ahead, as mentioned, we still believe that there’s a lot of untapped demand out there. So it’s now a matter of getting the customers to to start investing at a at a larger scale again. And as I said, AI is is a driver of this because you you need to prepare your organization and and your your your data, your systems in order to fully take advantage of of AI. As you all know, it’s it’s more than just a a language model.

It can be used in in many different ways to to both become more effective but but also to to drive new revenue streams for for customers. This enter Ukraine with Eterra initiative where we have entered into several contracts with with different players in The Nordics and and in Ukraine. It’s a whole the promise of generating some, I’d say, quite substantial revenue and profits for us in the next two to three years. It will not come at an even pace because we have this risk reward model embedded into most of these that could suddenly give us a spike in revenue in any given quarter. Related to this is is the is the traction we now have in the defense industry where we we are able to to utilize our our position in Ukraine, to to get quite unique feedback from from what is working live in in Ukraine and in the and and use that to to constantly drive innovation in terms of defense technology.

So that’s that’s something we’re we’re exploring more and more. Our our main focus though remain now on on profitable growth and still generating cash. And I think we will we will, you know, see better results going forward. I think we are over the worst slump now. And I think think yeah.

I think the the the market will will slowly maybe, but but gradually come back. Yeah. And and we will do our best internally to to make sure that we are over in in a fit state in terms of cost effectiveness. Alright. Thank you.

I don’t know if there are any questions posted online.

Moderator/Facilitator, Eterra: You have oh, it actually came in a question in this very second. So can you please comment further the surprisingly major sector drop in financial services?

Arne, CEO, Eterra: It’s it’s actually I will say it’s going back to one of the larger customer we had in 2024, we got a drop there, and it’s not fully back to a 100% the the level we had. That’s one of the one of the scenario. But of course, when we are also increasing the capacity capacity on the other one, you know, is also have will have some impact. So so I will say the the financial services, both banking and in series, a lot of opportunities there. So it’s not that they’re not downscales.

I think there’s sometimes a project are finished, but of course, they’re also looking into AI as a as a new way of innovation. So so I think that’s more normal that it will have some up and downs also in that area. But from Eterra perspective, have in the past, we believe we were a little too much focus on one sector. So I think it’s more 40% is quite quite a major part of it here still, right? And one of the opportunities that we’re also seeing from Ukraine is actually in the financial sector.

So I think that will also depending on some quarter going up, there have been trend going down because we have that focus on energy and now we also focus on defense. So it will be, I will say that it will be more level to more not 50% or 46% as it was in the past. I think it may maybe will stand on the 40%, I guess.

Moderator/Facilitator, Eterra: Yes. Thank you. And other from that, I think you have explained very well Mhmm. This quarter. So Mhmm.

No other questions.

Arne, CEO, Eterra: Okay. Alright. The next time we meet, when is that?

Moderator/Facilitator, Eterra: It’s the October 24, I think.

Arne, CEO, Eterra: Yeah. But anyway, if you have some questions before before that, just to reach out to Bent and myself. We are really happy to meet you and discuss with you. So if there anything you need to have more information, we were ready to support you on that. So thank you.

Moderator/Facilitator, Eterra: Thank you very much.

Arne, CEO, Eterra: Bye

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