Digia Plc
Stock Exchange Release
7 August 2025 at 15:00 PM EEST
Digia's profitable growth has continued: Net sales for the review period
increased by 3.2 per cent. One-off investments have been made in international
growth and competitiveness.
April-June 2025
· Net sales: EUR 53.7 (52.1) million, up 3.2 per cent
· Operating profit (EBITA): EUR 3.1 (4.2) million, down 26.0 per cent; EBITA
margin: 5.8 (8.1) per cent of net sales
· Operating profit (EBIT): EUR 2.2 (3.5) million, down 35.4 per cent; EBIT
margin: 4.2 (6.6) per cent of net sales
· Earnings per share: EUR 0.06 (0.09)
· Acquisition of the Polish company Savangard Sp.zo.o.
· non-recurring expenses of EUR 0.4 million
· Improving operational efficiency
· non-recurring expenses of EUR 0.7 million
January-June 2025
· Net sales: EUR 107.5 (105.7) million, up 1.7 per cent
· Operating profit (EBITA): EUR 7.7 (9.7) million, down 21.2 per cent; EBITA
margin: 7.1 (9.2) per cent of net sales
· Operating profit (EBIT): EUR 6.1 (8.2) million, down 25.5 per cent; EBIT
margin: 5.7 (7.8) per cent of net sales
· Earnings per share: EUR 0.16 (0.22).
· Return on investment: 10.1 (15.1) per cent
· Equity ratio: 43.7 (46.9) per cent
· Acquisition of the Polish company Savangard Sp.zo.o.
Unless otherwise stated, the comparison figures provided in parentheses refer to
the corresponding period of the previous year.
Group key figures
+----------------++-----+------++--------++------++------++--------++------+
| % || | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|EUR 1,000 |4-6/ |4-6/ |Change, %|1-6/ |1-6/ |Change, %|1-12/ |
| |2025 |2024 | |2025 |2024 | |2024 |
+----------------++-----+------++--------++------++------++--------++------+
|Net sales |53,741|52,062|3.2% |107,517|105,710|1.7% |205,672|
+----------------++-----+------++--------++------++------++--------++------+
|Operating profit|3,120 |4,219 |-26.0% |7,673 |9,742 |-21.2% |21,161 |
|(EBITA) | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|- as a % of net |5.8% |8.1% | |7.1% |9.2% | |10.3% |
|sales | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Operating profit|2,232 |3,455 |-35.4% |6,115 |8,206 |-22.6% |18,208 |
|(EBIT) | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|- as a % of net |4.2% |6.6% | |5.7% |7.8% | |8.9% |
|sales | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Result for the |1,515 |2,460 |-38.4% |4,228 |5,875 |-28.0% |13,291 |
|period | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|- as a % of net |2.8% |4.7% | |3.9% |5.6% | |6.5% |
|sales | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
| | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Return on | | | |10.1% |15.4% | |16.7% |
|equity, % | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Return on | | | |10.1% |15.1% | |16.6% |
|investment, % | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Cash flow from | | | |6,989 |13,234 |-47.2% |25,049 |
|operations | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Interest-bearing| | | |25,023 |17,705 |41.3% |11,642 |
|net liabilities | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Net gearing, % | | | |29.7% |23.2% | |13.9% |
+----------------++-----+------++--------++------++------++--------++------+
|Equity ratio, % | | | |43.7% |46.9% | |52.9% |
+----------------++-----+------++--------++------++------++--------++------+
| | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Number of | | | |1,655 |1,563 |5.9% |1,576 |
|personnel at | | | | | | | |
|period-end | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Average number |1,620 |1,558 |4.0% |1,607 |1,551 |3.6% |1,553 |
|of personnel | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Shareholders' | | | |84,134 |76,274 |10.3% |83,718 |
|equity | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Balance sheet | | | |198,455|168,614|17.7% |163,486|
|total | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Earnings per |0.06 |0.09 |-38.4% |0.16 |0.22 |-28.0% |0.50 |
|share, EUR | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
|Earnings per |0.06 |0.09 |-38.4% |0.16 |0.22 |-28.0% |0.50 |
|share (diluted),| | | | | | | |
|EUR | | | | | | | |
+----------------++-----+------++--------++------++------++--------++------+
CEO's Review:
“I'm very pleased that, in spite of the challenging market situation, Digia's
net sales continued to grow faster than the IT services market during the second
quarter. Net sales increased by 3.2 per cent, and also grew organically by 1.3
per cent. Our net sales totalled EUR 53.7 (52.1) million in April-June.
International operations accounted for an increased share of net sales, that is,
14.6 (11.9) per cent.
Our operating profit (EBITA) for the period totalled EUR 3.1 (4.2) million, with
an EBITA margin of 5.8 (8.1) per cent of net sales. As expected, the result was
impacted by EUR 1.1 million in non-recurring items related to the Savangard
acquisition and Digia's change negotiations. Without these non-recurring items,
operating profit (EBITA) was on par with the comparison period.
During the review period, the service and maintenance business accounted for
49.2 (49.5) per cent and the project business for 50.8 (50.5) per cent of the
company's net sales.
In January-June, our net sales grew by 1.7 per cent to EUR 107.5 (105.7)
million. Our operating profit (EBITA) totalled EUR 7.7 (9.7) million, with an
EBITA margin of 7.1 (9.2) per cent of net sales. International business
accounted for 13.1 (12.1) per cent during the first half of the year.
During the second quarter, net sales growth was driven by the Digital Solutions
service area, in which net sales increased by 10 per cent on the comparison
period. This growth was primarily driven by custom software development, data
utilisation solutions and customer relationship management solutions. In the
other three service areas, net sales growth was burdened by customers' cautious
approach to investments coupled with delays in the launch of previously acquired
customer projects.
As expected, our operating profit (EBITA) for the review period was lower than
in the previous year due to non-recurring items and the challenging market
situation. The impact of the market was reflected in slower-than-expected growth
in net sales. Operating profit (EBITA) includes non-recurring costs related to
the Savangard acquisition (EUR 0.4 million) and restructuring costs (EUR 0.7
million). Operational adjustments to the Managed Solutions service area
constituted the main expense item. With these efficiency measures, the Managed
Solutions service area is now seeking annual savings of EUR 2.4 million.
Efficiency and renewal measures were also implemented in other business areas
during the review period.
In terms of sales, the second quarter was better than the comparison period,
with growth of 10.2 per cent in terms of contract value compared to the
comparison period. Our customer satisfaction continued to see positive
developments during the second quarter, and our Net Promoter Score (NPS) for key
customers reached a strong score of 61.
We signed several significant contracts during the review period. For example,
the EUR 2 million AI Experimentation Office agreement that we signed with
Traficom indicates a high level of confidence in our AI expertise. We also
continued our collaboration on a major customer's integration services with a
new EUR 3.4 million contract, and our cooperation with HSL was extended with
another EUR 4 million contract. We were also successful in public tenders,
winning a four-year contract worth EUR 8.5 million in a safety-critical sector.
Digia will renew the retail ERP system with modern cloud-based Microsoft
Dynamics 365 technology for Musti Group's, the leading Nordic pet care
specialist.
Strategy implementation
Sustainable profitable growth lies at the heart of Digia's “Unlock Your
Intelligence” strategy. We now have nine consecutive years of profitable growth
behind us. This requires continuous renewal.
During the second quarter, we made progress towards our strategy's
internationalisation goal. Our objective is to increase the share of Digia's
total net sales accounted for by international operations to 15 per cent by the
end of 2025. International business accounted for 14.6 (11.9) per cent in the
second quarter. The acquisition of Savangard in June will help us to achieve
this internationalisation goal. Savangard is a Polish group that was established
in 2002, and its acquisition will significantly strengthen our integration and
API expertise in Northern Europe. The company also brings a strong customer base
in the financial, energy, industrial and public sectors. Our collaboration with
Savangard aims to build a Northern European “Integration Powerhouse”. Business
integration is underway, and we are pleased to announce that we have already
signed our first joint contract with a Finnish customer that is worth more than
EUR 1 million. Savangard has also signed a contract with the Polish Social
Insurance Institution (ZUS) for integration maintenance and support services
worth approximately EUR 4 million.
The company's innovative and competitive offering will act as a foundation for
sustainable growth. During the review period, we launched our next-generation
Digia Business Operations Center - a Finnish service that is now expanding to
meet 24/7 business requirements.
We also strengthened our position as a provider of AI solutions. In June, Digia
became the first Finnish organisation to secure a Google Agentspace partnership,
and the first customer deliveries are already underway. We are also making
increasing use of Microsoft's AI solutions in our customer work. We have
implemented solutions on platforms such as Microsoft Fabric and Cloud for
Healthcare, and have also introduced AI to ERP processes in, for example,
Digia's own Envision.
An agent platform has been productised as part of Digia's own open-source-based
Digia Dolphin service, and it is already being used in customer deliveries. The
most important agreement related to AI solutions was the AI Experimentation
Office signed with Traficom.
Digia also continued its partnership with Technology Industries of Finland
during the second quarter by organising AI utilisation training for customer
organisations as part of the AI 1000 project.
Our recognition as security experts also increased when Traficom approved the
addition of both of our Digia Linja solutions to its list of safety-critical
products.
Market outlook
In the short term, the market situation will continue to be characterised by
cautious and uncertain demand, which may sometimes be reflected as unhealthy
competition. Digia's competitive advantage is based on the strength of its
offering and the quality and reliability of its operations, while ensuring the
efficiency of its own operations. In addition to a high level of customer
satisfaction (key customers NPS 61), one of the hallmarks of Digia's quality and
reliability comprised the ISO 9001 and ISO 27001 audits that were conducted in
May 2025 and which Digia passed without deviations.
Our strategy will ensure that our operational efficiency and expertise evolve to
meet future customer needs, and that productising our service offering will
introduce AI to our customers' routine business operations. We are also
expanding our geographic market area outside Finland in order to create a
foundation for future growth. This expansion is being supported by the
acquisition of Savangard in June. Digia's profound expertise and innovation will
give us a good foundation for future success.”
Profit guidance for 2025
Digia's profit guidance for 2025: Digia's net sales will grow (EUR 205.7 million
in 2024) and its operating profit (EBITA) will either increase or remain on a
par with 2024 (EUR 21.2 million in 2024).
Events after the review period
There have been no major events since the review period.
Briefing invitation
A briefing for analysts will be held at 4:30 pm on Thursday 7 August 2025 as a
Teams meeting. Attendance instructions have been emailed to participants.
CEO Timo Levoranta will give a webcast on the results starting at 6:00 pm at
https://digia.events.inderes.com/q2-2025/.
The material and presentation for the event will be available from 4:30 pm on 7
August 2025 on the company's website: digia.com/en/investors/reports-and
-presentations.
Financial reporting
Digia will publish its business review for January-September 2025 at 3:00 pm on
Friday 23 October 2025.
For further information, please contact:
Timo Levoranta, President & CEO
tel. +358 40 500 2050
Distribution
Nasdaq Helsinki
Key Media
digia.com
Digia is a software and service company that combines technological
possibilities and human capabilities to build intelligent business, society and
a sustainable future. Our mission is to ensure that our customers are at the
forefront of digital evolution. There are more than 1,600 of us working at Digia
and we operate globally with our customers. Digia's net sales totalled EUR 205.7
million in 2024. The company is listed on Nasdaq Helsinki (DIGIA). digia.com