TietoEVRY's Q3 Report Shows Resilient Profitability Amid Soft Market Conditions
TietoEVRY Oyj has released its interim report for the third quarter of 2024, highlighting its financial performance and strategic direction.
Sammanfattning
TietoEVRY's Q3 2024 report reveals a slight decrease in revenue but improved profitability. The company anticipates continued market softness and is focusing on cost management and strategic growth.
TietoEVRY Oyj has published its interim report for Q3 2024, which presents a nuanced picture of its financial health and strategic initiatives. Despite a challenging market environment, the company has managed to sustain profitability through effective cost management.
Key Financial Performance Indicators (KPIs)
KPI | Q3 2024 | Q3 2023 |
---|---|---|
Revenue (EUR million) | 655.0 | 659.7 |
Operating Profit (EBIT) (EUR million) | 63.5 | 61.6 |
Operating Margin (EBIT) (%) | 9.7 | 9.3 |
Adjusted Operating Profit (EBITA) (EUR million) | 88.4 | 85.6 |
Adjusted Operating Margin (EBITA) (%) | 13.5 | 13.0 |
EPS (EUR) | 0.32 | 0.37 |
Cash Flow from Operating Activities (EUR million) | 58.2 | -2.0 |
Comparison of KPIs
KPI | Change |
---|---|
Revenue | -0.7% |
Operating Profit (EBIT) | +3.1% |
Operating Margin (EBIT) | +0.4 pp |
Adjusted Operating Profit (EBITA) | +3.3% |
Adjusted Operating Margin (EBITA) | +0.5 pp |
EPS | -13.5% |
Cash Flow from Operating Activities | Improved significantly |
Conclusion
The latest report indicates that while TietoEVRY faces a soft market, its strategic focus on cost management and operational efficiency has yielded a resilient profit margin. The company's diverse business segments, particularly Tietoevry Banking and Care, continue to show growth, albeit in a challenging environment. Investors should note the company's strategic transformation towards becoming a leading software and digital engineering company, which is expected to drive future growth.
Källa
Sammanfattning
Tietoevry Corporation released its interim report for the third quarter of 2024, noting a slight decline in revenue to EUR 655 million from EUR 659.7 million in the same period of 2023. Organic growth was negative, with a decrease of 1% compared to a 2% increase the previous year. The operating profit was EUR 63.5 million, up from EUR 61.6 million, with an operating margin of 9.7%. The adjusted operating profit was EUR 88.4 million, and the adjusted operating margin improved to 13.5%. Earnings per share fell to EUR 0.32 from EUR 0.37. Cash flow from operating activities increased significantly to EUR 58.2 million from a negative EUR 2 million. The company updated its full-year outlook for 2024, expecting organic growth to be around -2% and an adjusted operating margin between 12.3% and 12.7%. This is a revision from the previous expectation of 0-3% organic growth. CEO Kimmo Alkio commented on the softer IT market sentiment and the company's focus on profitability and cost management. Tietoevry's software businesses showed growth, while its digital engineering and tech services faced challenges. The company is pursuing strategic transformation and innovation, particularly in AI, while maintaining a commitment to responsible technology development. Financial performance by segment showed mixed results, with Tietoevry Banking, Care, and Industry experiencing growth, while Tietoevry Create and Tech Services saw declines. The company continues to focus on efficiency and growth opportunities despite a challenging market environment.