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, Revenue, Growth, Organic Adjusted1) Adjusted1)
Adjusted1) Adjusted1)
% growth, operating operating
operating operating
EUR EUR %3)
million million profit2), profit2),
margin2), margin2),
%
%
EUR EUR
million million
1-3/2023 1-3/2022 1-3/2023 1-3/2022 1-3/2023 1-3/2022
Tietoevry 222.5 215.7 3 9 33.9 29.0
15.2 13.5
Create
Tietoevry 130.6 123.4 6 15 13.9 13.0
10.7 10.5
Banking
Tietoevry 62.8 56.6 11 15 19.1 16.6
30.4 29.3
Care
Tietoevry 68.7 70.8 -3 4 11.8 11.1
17.2 15.6
Industry
Tietoevry 123.1 121.0 2 6 11.5 10.4
9.3 8.6
Transform
Tietoevry 208.8 224.0 -7 0 10.7 10.9
5.1 4.8
Connect
Eliminations -72.1 -80.5 - - -9.0 -6.3 -
-
and
non
-allocated
costs
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 (https://tieto.videosync.fi/q1-2023/) 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=10010585). 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