Norway-based IT consultancy Webstep reported an 11% year-over-year drop in second-quarter revenue to NOK 190.4 million, citing reduced headcount, heightened competition in the public sector and the completion or loss of key client projects.
EBIT for the quarter totaled NOK 13.9 million, a decline from NOK 17.9 million in the same period last year, while the EBIT margin contracted to 7.3% from 8.9%. The company attributed the weaker profitability to a smaller workforce, seasonal payment settlements and adverse shifts in tax payment schedules that weighed on operating cash flow.
Webstep’s hourly billing rates rose at a pace exceeding Norway’s consumer price index, reflecting pricing discipline despite softer demand. However, utilization rates and margins were pressured by constraints in public-sector spending, particularly in Oslo, where government budgets have tightened.
The consultancy expects market conditions to remain subdued in the near term, with ongoing pricing pressure and no immediate rebound in demand. Management emphasized a focus on maintaining client relationships and cost discipline as the foundation for future performance improvements when conditions stabilize.
