Tietoevry's Interim Report 3/2022: Strong growth and solid profitability

Tietoevry Corporation INTERIM REPORT 27 October 2022, 8.00 a.m. (EEST)

• Strong organic growth of 8%, driven by Tietoevry Create, Tietoevry Banking and Tietoevry Care
• Solid adjusted operating margin of 14.2%
• Good progress in performance improvement programmes – profit contribution accelerating towards the year-end
• Full-year outlook updated on 20 October

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

The company updated its full-year outlook on 20 October:

Tietoevry expects its organic1) growth to be 5% to 6% (revenue in 2021: EUR 2 823.4 million).

The company estimates its full-year adjusted operating margin2) (adjusted EBITA) to be 12.8–13.1% (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’m pleased that we delivered our fourth consecutive quarter of accelerated growth, building on our strategic focus on scalable software businesses and consulting opportunities in new digital and data-related fields. We also achieved clear profitability uplift from the previous quarter to over 14% in this challenging era of high inflation. In euro terms, our operating profit improved from the previous year.

Market conditions are currently twofold: customer activities and investments into new technologies continue to generate growth opportunities, thus building comfort for our continued growth agenda. In parallel, high inflation is impacting our clients and ourselves, visible in the increased costs of labour, materials and energy. In the current market environment, it is of utmost importance to continue to focus on productivity, operational efficiency and price competitiveness. During the past quarter, our efficiency and profitability improvement programmes in Tietoevry Banking and Tietoevry Connect started to deliver the anticipated performance improvements. These programmes, together with the measures initiated in Tietoevry Transform during the summer, are anticipated to accelerate our performance in the fourth quarter.

Recently we have updated our guidance for the year with a higher revenue outlook – and also updated the profitability guidance, reflecting the current inflationary era.

In today’s geopolitical and economic environment, the role of corporations in social responsibility is becoming increasingly important. Based on our values of openness, trust and diversity, we support the well-being of all employees globally – and continue to take all possible measures to support the safety and well-being of our Ukrainian colleagues.”

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

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 27 October 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 9 2319 5437

Sweden: +46 8 505 20424

United Kingdom: +44 33 0551 0200

United States: + 1 212 999 6659

Access code

Quote “Tietoevry” when prompted by the operator

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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