Tietoevry's Interim Report 2/2022: Strong organic growth of 5% – growth outlook for the year upgraded

Tietoevry Corporation HALF-YEAR FINANCIAL REPORT 22 July 2022, 8.00 a.m. (EEST)

•         Growth driven by Tietoevry Create, up by 12%, and Tietoevry Banking, up by 10%

•         Adjusted operating margin 10.7% impacted by salary inflation – ongoing efficiency measures driving uplift in H2’22

•         Successful talent attraction with 1 200 new joiners – personnel attrition rates stabilizing

•         Full-year growth outlook upgraded to 3–5% from the previous range of 2–4%

•         Strategic review of Tietoevry Banking initiated to unlock its full value potential

The full interim report with tables is available at the end of this release.

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 – growth outlook upgraded

Tietoevry expects its organic1) growth to be 3% to 5% (revenue in 2021: EUR 2 823.4 million). Previously, the company estimated its growth to be 2% to 4%.

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 our continued strong growth in the second quarter, with our consulting business and banking software business reaching double-digit growth. While attrition levels are now stabilizing, profitability for the quarter was impacted by exceptionally high salary inflation, as anticipated. We are on schedule with the performance improvement programmes in Tietoevry Connect and Tietoevry Banking and we have also accelerated performance measures in Tietoevry Transform. These programmes will contribute to our performance in the second half. Tietoevry Transform ended the quarter with a strong order intake, which also provides a foundation for improved future performance.

We have today announced a strategic review of Tietoevry Banking to enable its accelerated growth and realize its full value potential. The strategic review includes a process to study the potential separation of the Banking business into a new company and its listing on a stock exchange. We believe that operating as an independent entity would enable this business to have better focus, build a clear financial services software identity to attract the best talent and enhance value to its customers. 

We continue to experience an active market with exciting customer initiatives for applying new cloud and data technologies – to the benefit of our customers’ digital transformation agenda. Broad market demand provides a solid foundation for continued healthy growth, in line with our full-year ambitions.

It is inspiring to see how our Ukrainian colleagues remain firmly committed to high-quality customer deliveries every day. We at Tietoevry are doing all that we can to support our colleagues and their families in these difficult times.

During the summer, we have been commended for our participation in societal discussions across the Nordics on topics such as cybersecurity, inclusion and climate change. More than ever, companies are expected to participate in public dialogue on environmental and social responsibility and the development of our societies. We at Tietoevry are committed to continuing to be an active participant in the dialogue and contributing to our customers' sustainability agenda through our products and services.”

Financial performance by segment

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 Friday 22 July 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: 66506729#

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

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