Tietoevry Corporation HALF-YEAR REPORT 23 July 2024, 9.00 a.m. (EEST)
- Organic growth of 1% driven by software businesses
- Improved profitability of 11% supported by Tietoevry Tech Services
- Strong customer wins and order intake - book-to-bill 1.3
- Strategic review of Tietoevry Tech Services progressing - active sales process ongoing
The full interim report with tables is available at the end of this release.
4-6/2024 | 4-6/2023 | 1-6/2024 | 1-6/2023 | |
Revenue, EUR million | 715.0 | 695.2 | 1 448.9 | 1 439.5 |
Organic growth1), % | 1 | 3 | -1 | 5 |
Acquisitions and divestments, % | 2 | 0 | 2 | 0 |
Foreign exchange rates, % | 0 | -8 | -1 | -7 |
Total growth, % | 3 | -6 | 1 | -2 |
Organic growth adjusted for working days4), % | -1 | 4 | -1 | 6 |
Operating profit (EBIT), EUR million | 47.8 | 41.2 | 110.4 | 109.9 |
Operating margin (EBIT), % | 6.7 | 5.9 | 7.6 | 7.6 |
Adjusted2) operating profit (EBITA3)), EUR million | 78.3 | 72.9 | 167.0 | 164.7 |
Adjusted2) operating margin (EBITA3)), % | 11.0 | 10.5 | 11.5 | 11.4 |
EPS, EUR | 0.24 | 0.21 | 0.56 | 0.62 |
Cash flow from operating activities, EUR million | 68.1 | 11.5 | 139.9 | 115.2 |
Capital expenditure, EUR million | 24.5 | 18.9 | 48.7 | 39.6 |
Full-year outlook for 2024 unchanged
Tietoevry expects its organic1) growth to be in the range of 0-3% (revenue in 2023: EUR 2 851.4 million).
The company estimates its full-year adjusted operating margin2) (adjusted EBITA3)) to be 12.0-13.0% (12.6% in 2023).
1) Adjusted for currency effects, acquisitions and divestments
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
3) Profit before interests, taxes and amortization of acquisition-related intangible assets
4) Company estimate
CEO's comment
Comment regarding the interim report by Kimmo Alkio, President and CEO:
"We delivered steady second-quarter performance in a mixed market environment. The company returned to growth and improved its profitability to 11%. Our software businesses, Tietoevry Banking and Tietoevry Industry posted healthy growth of 5%. Furthermore, Tietoevry Banking signed significant customer contracts and achieved a record-high order book. Our consulting and managed services businesses declined in a market with weaker demand. We continue our focus on efficiency to remain resilient across all businesses, with the biggest profitability improvement in the second quarter seen in Tietoevry Tech Services.
As announced on 1 July, the strategic review of Tietoevry Tech Services is progressing with an active sales process ongoing. As a company, we are in the middle of a multi-year strategic transformation, which we embarked on with our specialization strategy at the beginning of 2022. We are making consistent progress in our ambition of repositioning Tietoevry as a leading software and digital engineering company. During the quarter, we launched a new unified operating model for Tietoevry Create to realize its global scale, competitive offerings and efficiency. The software businesses further expanded their footprint with customer wins, SaaS models and AI-enabled products. As an example, in healthcare we have co-created with our customers AI-augmented diagnosis and treatment solutions for patient-centred care.
Our hearts and minds remain with our colleagues and people in Ukraine as the devastating situation in the country continues.
We are also proud of the progress in our sustainability agenda - we remain focused on climate action, ethical conduct and social impact as outlined in our Sustainability Pledge launched in March. Tietoevry was recognized as one of Europe's Climate Leaders 2024 in a listing by the Financial Times and as one of the World's Most Sustainable Companies of 2024 by Time Magazine - both compiled in partnership with Statista. We also continue to have diversity and inclusion in focus, demonstrated, for example, by our long-term participation in Pride."
Financial performance by segment
Revenue, EUR million | Revenue, EUR million | Growth, % | Organic growth, % | Adjusted operating profit, EUR million | Adjusted operating profit, EUR million | Adjusted operating margin, % | Adjusted operating margin, % | |
4-6/2024 | 4-6/2023 | 4-6/2024 | 4-6/2023 | 4-6/2024 | 4-6/2023 | |||
Tietoevry Create | 213.9 | 204.8 | 4 | -2 | 24.3 | 24.4 | 11.4 | 11.9 |
Tietoevry Banking | 148.2 | 139.8 | 6 | 5 | 14.7 | 14.8 | 9.9 | 10.6 |
Tietoevry Care | 58.6 | 58.2 | 1 | 1 | 15.3 | 17.0 | 26.2 | 29.1 |
Tietoevry Industry | 67.3 | 63.8 | 5 | 5 | 10.1 | 9.4 | 15.1 | 14.7 |
Tietoevry Tech Services | 256.1 | 265.4 | -4 | -4 | 19.8 | 13.1 | 7.7 | 4.9 |
Eliminations and non-allocated costs | -29.2 | -37.0 | - | - | -6.0 | -5.7 | - | - |
Group total | 715.0 | 695.2 | 3 | 1 | 78.3 | 72.9 | 11.0 | 10.5 |
For further information, please contact:
Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen (at) tietoevry.com
Tommi Järvenpää, Head of Investor Relations, tel. +358 40 576 0288, tommi.jarvenpaa (at) tietoevry.com
A teleconference for analysts and media will be held on 23 July 2024 at 10.00 a.m. EEST (09.00 a.m. CEST, 08.00 a.m. UK time). Kimmo Alkio, President and CEO, and Tomi Hyryläinen, CFO, will present the results online in English. The presentation can be followed on Tietoevry's website.
To take part in the questions and answers session after the presentation you will need to dial in by phone. You can access the teleconference by registering on this link. After the registration you will be provided phone numbers, user ID and a conference ID to access the conference.
The event is recorded and it will be available on demand later during the day. Tietoevry publishes its financial information in English and Finnish.
Tietoevry Corporation
DISTRIBUTION
Nasdaq Helsinki
Nasdaq Stockholm
Oslo Børs
Principal Media
Tietoevry creates purposeful technology that reinvents the world for good. We are a leading technology company with a strong Nordic heritage and global capabilities. Based on our core values of openness, trust and diversity, we work with our customers to develop digital futures where businesses, societies, and humanity thrive.
Our 24 000 experts globally specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in more than 90 countries. Tietoevry's annual turnover is approximately EUR 3 billion and the company's shares are listed on the NASDAQ exchange in Helsinki and Stockholm, as well as on Oslo Børs. https://www.tietoevry.com
