Visma continues the rapid growth and delivers solid figures in Q1 2011

Visma has delivered strong growth throughout several years and this development continues going into 2011.

Q1 2011 came in as yet another record-breaking quarter with all-time high revenues. This was achieved through strong organic growth and a series of strategic acquisitions. 

In the first quarter 2011 Visma delivered revenue of NOK 1 277 million, compared with NOK 953 million during the same period last year. This resulted in a revenue increase of 34 percent. The currency-adjusted organic revenue growth was 8.4 percent. The EBITDA came in at NOK 221 million, compared with NOK 173 million in the first quarter 2010, representing an increase of 28 percent. Net cash flow from operations was NOK 630 million after tax by the end of the quarter versus NOK 597 million in the same period in 2010.

“This is the best-ever first quarter for Visma in terms of revenue. The financial performance reflects Visma’s strong market position and the solid demand for our products and services. We experience increasing demand for efficiency-increasing software solutions and outsourcing services that provide cost reductions. Even though many businesses still focus on cost control and increased productivity, in addition an increasing number are looking for solutions that promote and support additional growth” says Øystein Moan, CEO of Visma.

Increasing growth rate

Visma offers a comprehensive portfolio of products and services within software, outsourcing of financial processes, procurement solutions, collecting services and retail solutions as well as services within projects and consulting. According to Øystein Moan, there is a great potential for creating increased value through cross-selling and combined solutions, as he believes there still is a lot to gain from selling additional solutions to each customer as well as combining products across Visma’s business areas.

“At the same time, we expect continued growth through new acquisitions. The record high revenue is, among other things, a result of good strategic acquisitions within several areas. As always, we are focused on combining both organic and structural growth with the implementation of new business operations. This includes acquisitions and organic investments, which have been executed successfully over many years. Hence, we will continue with this strategy” says Øystein Moan.

In the quarter Visma acquired ABC Kreditstyring, a debt collecting company, as well as Stavanger Regnskap and Egersund Regnskap, both accounting firms.

Will take a lead within SaaS in the Nordics

Visma experience an increasing demand for so-called Software as a Service (SaaS). As an example, sales of the new online accounting solution, Visma Avendo eAccounting, increased with 50 per cent in Norway during the first months of 2011.

“Visma sets out to be the leading provider of online software and solutions in the Nordic region. We have delivered substantial growth within ERP throughout the last years, and gained large market shares each year in almost all the individual Nordic markets, making Visma the largest ERP vendor in the Nordics according to Gartner Group. However, according to analysts the sales of online software solutions will experience much more rapid growth than locally installed software within ERP, accounting and HRM during the next ten years. In 2020, SaaS is expected to dominate the market, especially when it comes to small and mid-sized businesses” says Øystein Moan, who believes that Visma is well positioned to benefits form such a development. 

“Even though, there will still be many expert users around that need access to locally installed solutions with advanced functionality. In example, this will be a preferred solution among the largest businesses, the accounting firms as well as customers within the public sector. At the same time, we will experience a vast number of users in need of user-friendly, online solutions which seamlessly are integrated with the locally installed core solutions. Businesses with a platform of locally installed solutions will also have good possibilities of taking a lead within SaaS” he adds in conclusion.

 

 

1st quarter 2011

1st quarter 2010

Growth

Revenue

1277

953

34 %

EBITDA

221

173

28 %

EBIT

157

137

15 %

Profit before tax

127

106

20 %

 

 

 

 

 

 

 

All figures in NOK million. 

 

 

For additional comments, please contact:
Øystein Moan, CEO of Visma, +47 920 80 000