04 May 2023
Tietoevry Corporation INTERIM REPORT 4 May 2023 8.00 a.m. (EET)
Growth of 8% driven by Tietoevry Banking, Care and Create
Adjusted operating margin 12.3% – profitability improved in all businesses
Strategic reviews of Tietoevry Banking and Tietoevry Tech Services progressing as planned
The full report with tables is available at the end of this release.
|
|
1–3/2023 |
1–3/2022 |
|
Revenue, EUR million |
744.3 |
730.9 |
|
Change, % |
2 |
3 |
|
Organic growth1), % |
8 |
5 |
|
Operating profit (EBIT), EUR million |
68.7 |
46.1 |
|
Operating margin (EBIT), % |
9.2 |
6.3 |
|
Adjusted2) operating profit (EBITA), EUR million |
91.9 |
84.6 |
|
Adjusted2) operating margin (EBITA), % |
12.3 |
11.6 |
|
EPS, EUR |
0.41 |
0.28 |
|
Net cash flow from operations, EUR million |
103.7 |
62.0 |
|
Capital expenditure, EUR million |
20.7 |
21.1 |
1) Adjusted for currency effects, acquisitions and divestments.
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
Full-year outlook for 2023 unchanged
Tietoevry expects its organic1) growth to be 5% to 7% (revenue in 2022: EUR 2 928.1 million).
The company estimates its full-year adjusted operating margin2) (adjusted EBITA) to be 13.0–13.5% (13.0% in 2022).
1) Adjusted for currency effects, acquisitions and divestments.
2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability.
CEO’s comment
Comment regarding the interim report by Kimmo Alkio, President and CEO:
“I’m pleased with our good start for 2023, which continues the momentum we have been building in the businesses as part of our strategy. In the first quarter, we delivered strong growth of 8% and healthy profitability of 12.3% (adjusted EBITA). The main growth drivers were the software and digital engineering businesses, as companies are looking to automate and digitalize their operations. We delivered 15% growth in our Banking and Care businesses and 9% growth in Tietoevry Create. Importantly, we achieved margin expansion across each of our businesses.
We continue to make solid progress in executing our strategy to increase shareholder value through specialized businesses and our previously announced strategic reviews. Strategic reviews of both Banking and Tech Services are proceeding on schedule. As one key milestone, Tietoevry Tech Services became operational as of 1 April. During the integration of the Transform and Connect businesses, potential for operational simplification and efficiencies has been identified, which will support the future financial performance of the integrated business.
We see our customers' investments continuing in high-growth segments in cloud native, software and data services while the drive for efficiency and cost optimization in managed services remains. Investment drivers for our customers are currently centred around fast adaptation to the dynamic economic and geopolitical environments. Customers are striving to improve operational efficiency, cybersecurity preparedness, business agility and resilience – and develop new data-driven services, including use of Artificial Intelligence-centric solutions. Furthermore, we anticipate cost inflation to remain high and impact personnel and technology costs, requiring continued attention on pricing and efficiency.
Our hearts and minds remain with our colleagues in Ukraine as the devastating situation in the country continues. We will keep supporting our Ukrainian team and their families with all possible measures.
I am delighted to see the solid progress and positive developments on our long-term sustainability plan, especially with respect to carbon reduction and circularity. Sustainability and social responsibility are an integral part of our daily work and are important for building long-term customer relationships and attracting talent. Together with our customers we innovate services that help in managing and reducing the climate impact and realize the benefits of the data-rich world for the entire society.”
Financial performance by segment
|
|
Revenue, EUR million |
Revenue, EUR million |
Growth, % |
Organic growth, %3) |
Adjusted1) operating profit2), EUR million |
Adjusted1) operating profit2), EUR million |
Adjusted1) operating margin2), % |
Adjusted1) operating margin2), % |
|
|
1–3/2023 |
1–3/2022 |
1–3/2023 |
1–3/2022 |
1–3/2023 |
1–3/2022 |
||
|
Tietoevry Create |
222.5 |
215.7 |
3 |
9 |
33.9 |
29.0 |
15.2 |
13.5 |
|
Tietoevry Banking |
130.6 |
123.4 |
6 |
15 |
13.9 |
13.0 |
10.7 |
10.5 |
|
Tietoevry Care |
62.8 |
56.6 |
11 |
15 |
19.1 |
16.6 |
30.4 |
29.3 |
|
Tietoevry Industry |
68.7 |
70.8 |
-3 |
4 |
11.8 |
11.1 |
17.2 |
15.6 |
|
Tietoevry Transform |
123.1 |
121.0 |
2 |
6 |
11.5 |
10.4 |
9.3 |
8.6 |
|
Tietoevry Connect |
208.8 |
224.0 |
-7 |
0 |
10.7 |
10.9 |
5.1 |
4.8 |
|
Eliminations and non-allocated costs |
-72.1 |
-80.5 |
— |
— |
-9.0 |
-6.3 |
— |
— |
|
Group total |
744.3 |
730.9 |
2 |
8 |
91.9 |
84.6 |
12.3 |
11.6 |
1) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability
2) Profit before interests, taxes and amortization of acquisition-related intangible assets
3) Adjusted for currency effects and impact from acquisitions and divestments
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 Thursday 4 May 2023 at 10.00 a.m. EEST (09.00 am CET, 08.00 am. 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 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. www.tietoevry.com
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