Tietoevry's Interim Report 1/2022: Strong organic growth of 5%
- Growth driven by Tietoevry Create, up by 15%, and Tietoevry Banking, up by 8%
- Healthy profitability – adjusted operating margin 11.6%
- High attention to employee safety in Ukraine – limited business and customer impact to date
- Six specialized businesses established to drive growth and expansion
The full interim report with tables is available at the end of this release.
|
|
1–3/2022 |
1–3/2021 |
|
Revenue, EUR million |
730.9 |
711.5 |
|
Change, % |
2.7 |
-4.4 |
|
Organic growth1), % |
4.5 |
-5.6 |
|
Operating profit (EBIT), EUR million |
46.1 |
56.7 |
|
Operating margin (EBIT), % |
6.3 |
8.0 |
|
Adjusted2) operating profit (EBITA3)), EUR million |
84.6 |
82.1 |
|
Adjusted2) operating margin (EBITA3)), % |
11.6 |
11.5 |
|
Adjustment items2), EUR million |
-26.6 |
-13.6 |
|
Order backlog, EUR million |
3 468 |
3 217 |
|
Net debt/EBITDA |
1.1 |
2.3 |
1) Adjusted for currency effects and impact from 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.
Full-year outlook for 2022 unchanged
Tietoevry expects its organic1) growth to be 2% to 4% (revenue in 2021: EUR 2 823.4 million). The company estimates its full-year adjusted operating margin2) (adjusted EBITA) to be 13.1–13.6% (13.0% in 2021).
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 am pleased with the first-quarter performance and progress in strategy execution. Growth increased to 5% and adjusted operating margin was 11.6%. Tietoevry Create delivered strong 15% growth by focusing on cloud native consulting and software engineering services, especially in international markets. Of our software-driven businesses, Tietoevry Banking continued to deliver healthy 8% growth.
Our new strategy based on specialized end-to-end businesses has gone live as planned and drives increased customer value and growth opportunities. In order to drive competitiveness and efficiency, several measures are being carried out across businesses. In February, Tietoevry Connect announced a cost savings and delivery optimization programme to support its profitability improvement objectives.
We stay strong together and live by our values as Tietoevry during the ongoing tragedy in Ukraine. We prioritize employee safety and are doing our best to support our 2 200 Ukrainian colleagues and their families. Currently the majority of our colleagues have relocated to safer areas in Ukraine and adjacent countries. I continue to be impressed by the working morale of our Ukrainian colleagues and how they are maintaining high customer focus in these difficult times.
Market demand continues to be driven by high adoption of new cloud and data-driven technologies as well as industry-specific software. The active market and our strong first quarter provide a solid foundation for the full year.”
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), % |
|
|
1–3/2022 |
1–3/2021 |
1–3/2022 |
1–3/2021 |
1–3/2022 |
1–3/2021 |
||
|
Tietoevry Create |
218.1 |
188.4 |
16 |
15 |
31.3 |
26.9 |
14.3 |
14.3 |
|
Tietoevry Banking |
125.0 |
113.5 |
10 |
8 |
12.3 |
11.6 |
9.9 |
10.2 |
|
Tietoevry Care |
56.6 |
54.4 |
4 |
5 |
16.6 |
13.7 |
29.3 |
25.2 |
|
Tietoevry Industry |
71.0 |
82.9 |
-14 |
3 |
11.2 |
12.8 |
15.7 |
15.5 |
|
Tietoevry Transform |
121.2 |
121.4 |
-0 |
0 |
10.3 |
13.1 |
8.5 |
10.8 |
|
Tietoevry Connect |
224.2 |
227.3 |
-1 |
-1 |
9.2 |
10.1 |
4.1 |
4.5 |
|
Eliminations and non-allocated costs |
-85.1 |
-76.4 |
— |
— |
-6.3 |
-6.1 |
— |
— |
|
Group total |
730.9 |
711.5 |
3 |
5 |
84.6 |
82.1 |
11.6 |
11.5 |
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
Tanja Lounevirta, Head of Financial Communications, tel. +358 50 321 7510, tanja.lounevirta (at) tietoevry.com
A teleconference for analysts and media will be held on Thursday 5 May 2022 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.
Teleconference numbers
Finland: +358 981 710 310
Sweden: +46 856 642 651
Norway: +47 235 002 43
United Kingdom: +44 333 300 0804
United States: +1 631 913 1422
PIN: 43022105#
To ensure that you are connected to the conference call, please dial in a few minutes before the start of the press and analyst conference. The teleconference 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
Tags: