Tietoevry CorporationFINANCIAL STATEMENT RELEASE14 February 2025, 9:00 a.m.
(EET)
· Organic growth -7% - weaker market demand impacting all businesses
· Adjusted EBITA of 12.8% - improved profitability in Tietoevry Care and
Tietoevry Banking
· Strong operating cash flow of EUR 128 million
· Resilient full-year profitability - increased dividend of EUR 1.50 (1.47)
per share proposed
· Tietoevry Tech Services strategic review expected to be concluded in March -
sales process in final stages with the non-industrial buyer
The full report with tables is available at the end of this release.
10-12/2024 10-12/2023 1-12/2024 1-12/2023
Revenue, EUR million 698.7 752.2 2802.6 2851.4
Organic growth1), % -7 1 -2 4
Acquisitions and 0 2 1 1
divestments, %
Foreign exchange 0 -6 -1 -7
rates, %
Total growth, % -7 -2 -2 -3
Organic growth adjusted -7 2 -2 4
for working days4), %
Operating profit (EBIT), -144.1 84.1 29.8 255.6
EUR million
Operating margin (EBIT), -20.6 11.2 1.1 9.0
%
Adjusted2) operating 89.3 108.4 344.7 358.7
profit (EBITA3)), EUR
million
Adjusted2) operating 12.8 14.4 12.3 12.6
margin (EBITA3)), %
EPS, EUR -1.41 0.46 -0.53 1.45
Cash flow from operating 127.6 152.9 325.7 266.1
activities, EUR million
Capital expenditure, EUR 18.5 28.1 85.0 85.3
million
Full-year outlook for 2025
Tietoevry expects its organic1) growth to be in the range of -3% to +1% (revenue
in 2024: EUR 2 802.6 million).
The company estimates its full-year adjusted operating margin2) (adjusted
EBITA3)) to be 12.0-13.0% (12.3% in 2024).
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, amortization of acquisition-related
intangible assets and goodwill impairment.
4) Company estimate
CEO's comment
Comment regarding the financial statement release by Kimmo Alkio, President and
CEO:
"Our fourth quarter was challenging, with the current economic environment
impacting all businesses. Organic growth was -7% while our profitability
remained solid at 12.8%, driven by our focus on resilience. Our operating cash
flow was strong at EUR 128 million, driving the full-year cash flow clearly
above the previous year's level. As a result of the strong cash flow and solid
financial position at the end of the year, the Board of Directors has decided to
propose an increase in the dividend to EUR 1.50 per share, in line with our
dividend policy.
Organic growth for the full year was -2% and our profitability was 12.3%. Our
performance remained resilient in a market environment which was softer than
originally anticipated. During the year, we actively initiated cost efficiency
measures across the company to ensure current and future competitiveness of the
businesses. The foundation of our competitiveness centers around our employee
capabilities globally. We continued to actively invest and promote reskilling
towards new technologies of cloud, data and AI.
The strategic review of Tietoevry Tech Services has taken longer than expected
and we have recently made significant progress and expect the strategic review
to be concluded in March. The sales process is in the final stages with the non
-industrial buyer.
During the year, we continued to witness the advancement of Artificial
Intelligence (AI) related technologies, including Generative AI. These
technologies open up great opportunities that will be unveiled and harnessed in
the years to come. We at Tietoevry are actively enabling the AI agenda: each of
our specialized businesses is driving innovations and competitiveness in
products and services delivered to clients, as well as efficiency gains across
our businesses. Solutions such as GenAI-driven automated speech-to-text
conversion in the Lifecare Hospital Information System and AI-enabled Financial
Crime Prevention in Banking are tangible and encouraging signals of the value we
can create for our customers.
In 2024, we continued to drive our commitments in sustainability. Building on
our long-term efforts, and reflecting the latest regulatory requirements, we
have introduced our Sustainability Pledge outlining our key ambitions for the
years to come, centred around Climate Action, Ethical Conduct and Social Impact.
As one highlight in the area of diversity, we were happy to see the share of
female professionals recruited to the company increasing to 34% (32%). As a
special and timely activity, all our employees took training on Responsible AI
during the second half of the year. Our sustainability achievements for the year
will be fully reported in the Sustainability Statement to be published as part
of our Annual Report on 4 March.
Regarding the ongoing devastating situation in Ukraine, we will continue to
support our local colleagues there. We are very proud of our people for the
commitment and courage they keep on showing, and our hearts and minds remain
with them.
The soft market environment is expected to continue into 2025 with market
recovery expected in the second half. We continue to firmly execute on our
strategic agenda towards strong software and digital engineering businesses.
While we currently focus on resilient business performance, our businesses are
gearing towards future growth opportunities."
Financial performance by segment
Revenue, Revenue, Growth, Organic Adjusted Adjusted
Adjusted Adjusted
% growth, operating operating
operating operating
EUR EUR %
million million profit, profit,
margin, % margin, %
EUR EUR
million million
10-12/202 10-12/202 10-12/20 10-12/20 10-12/2024 10-12/2023
2
4 3 24 3
Tietoevry 208.3 228.6 -9 -8 23.3 34.3
11.2 15.0
Create
Tietoevry 145.5 149.6 -3 -2 21.2 21.4
14.6 14.3
Banking
Tietoevry 60.8 61.2 -1 0 19.5 18.4
32.1 30.1
Care
Tietoevry 64.9 68.6 -5 -5 7.8 11.4
12.1 16.6
Industry
Tietoevry 245.2 276.4 -11 -11 24.1 28.5
9.8 10.3
Tech
Services
Eliminations -26.1 -32.2 - - -6.6 -5.6
- -
and
non
-allocated
costs
Group total 698.7 752.2 -7 -7 89.3 108.4
12.8 14.4
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 14 February at 10.00
a.m. EET (9.00 a.m. CET, 8.00 a.m. UK time). Kimmo Alkio, President and CEO, and
Tomi Hyryläinen, CFO, will present the results online in English. The
presentation (https://tietoevry.videosync.fi/q4-2024) can be followed on
Tietoevry's website (http://www.tietoevry.com/investors).
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 (https://palvelu.flik.fi/teleconference/?id=50051697). 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 23 000 experts globally specialize in cloud, data, and software, serving
thousands of enterprise and public-sector customers in around 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