Continued positive development of revenues and profits
It is pleasing to see that our focus on our strategy has continued positive effects. We report the highest revenues and profits, for a third quarter, in the company's history and show a margin of 5.2 percent in profit before tax.
For the quarter, total revenues increased by 11 percent compared to the corresponding period last year and amounted to SEK 725 million. Profit before tax increased by 18 percent to SEK 37.4 million. Revenues from cloud services increased by 5 percent compared with the corresponding period last year. The positive trend has been achieved through increased service revenues combined with good cost control.
It is particularly satisfactory to see the positive development in the Business Unit East, UK and West, where we show both increased revenues and profits compared to the same period last year. The good development in these Business Units compensates for a weaker quarter in the Nordics, where both revenues and profits are lower compared to the corresponding period last year. The weak develop-ment in the Nordics is primarily driven by lower system sales margins combined with increased costs associated to the service delivery. Business Unit Nordics is expected to slightly recover during the fourth quarter of the year.
After just over a month as new CEO and President, my impression of the company is very positive. Proact has many strengths that enable continued customer satisfaction in a rapidly changing market. Our solid knowledge, clear customer focus, geographical coverage in Europe in conjunction with in-vestments made in the service business provide a strong foundation for continued good development of the company.
Many of our customers are in the middle of a digital transformation, where IT infrastructure and secure management of large amounts of business critical information becomes an integral part of business operations. In addition, the technology landscape is changing quickly which enables new cost-effective solutions as well as new business opportunities. Proact is very well positioned to offer our customers solutions based on future-proof technologies combined with both public and private cloud services, thereby creating a clear business value for customers.
As a customer focused partner, Proact's goal is to offer high-quality services and solutions, based on market-leading technologies, to meet our customers' business requirements and thereby create long-term value. I am convinced that through the established strategy we will continue to ensure high customer focus, further development of the business and the employees and thereby providing our customers with a market-leading offering within our niche.
Finally, I would like to thank Peter Javestad for his time as acting President and CEO, as well as the good result that the company has delivered under Peter´s leadership.
Kista, 18 October 2018