Tietoevry's interim report 4/2024 and financial statement release: Soft market continued – strong cash flow

Tietoevry Corporation FINANCIAL STATEMENT RELEASE 14 February 2025, 9:00 a.m. (EET) 

• Organic growth -7% – weaker market demand impacting all businesses​
• Adjusted EBITA of 12.8% – improved profitability in Tietoevry Care and Tietoevry Banking​
• Strong operating cash flow of EUR 128 million​
• Resilient full-year profitability – increased dividend of EUR 1.50 (1.47) per share proposed​
• Tietoevry Tech Services strategic review expected to be concluded in March – sales process in final stages with the non-industrial buyer

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

Full-year outlook for 2025 

Tietoevry expects its organic1) growth to be in the range of -3% to +1% (revenue in 2024: EUR 2 802.6 million).

The company estimates its full-year adjusted operating margin2) (adjusted EBITA3)) to be 12.0–13.0% (12.3% in 2024).

1) Adjusted for currency effects, acquisitions and divestments

2) Adjustment items include restructuring costs, capital gains/losses, impairment charges and other items affecting comparability

3) Profit before interests, taxes, amortization of acquisition-related intangible assets and goodwill impairment.

4) Company estimate

CEO’s comment

Comment regarding the financial statement release by Kimmo Alkio, President and CEO:

“Our fourth quarter was challenging, with the current economic environment impacting all businesses. Organic growth was -7% while our profitability remained solid at 12.8%, driven by our focus on resilience. Our operating cash flow was strong at EUR 128 million, driving the full-year cash flow clearly above the previous year’s level. As a result of the strong cash flow and solid financial position at the end of the year, the Board of Directors has decided to propose an increase in the dividend to EUR 1.50 per share, in line with our dividend policy.

Organic growth for the full year was -2% and our profitability was 12.3%. Our performance remained resilient in a market environment which was softer than originally anticipated. During the year, we actively initiated cost efficiency measures across the company to ensure current and future competitiveness of the businesses. The foundation of our competitiveness centers around our employee capabilities globally. We continued to actively invest and promote reskilling towards new technologies of cloud, data and AI.

The strategic review of Tietoevry Tech Services has taken longer than expected and we have recently made significant progress and expect the strategic review to be concluded in March. The sales process is in the final stages with the non-industrial buyer.

During the year, we continued to witness the advancement of Artificial Intelligence (AI) related technologies, including Generative AI. These technologies open up great opportunities that will be unveiled and harnessed in the years to come. We at Tietoevry are actively enabling the AI agenda: each of our specialized businesses is driving innovations and competitiveness in products and services delivered to clients, as well as efficiency gains across our businesses. Solutions such as GenAI-driven automated speech-to-text conversion in the Lifecare Hospital Information System and AI-enabled Financial Crime Prevention in Banking are tangible and encouraging signals of the value we can create for our customers.

In 2024, we continued to drive our commitments in sustainability. Building on our long-term efforts, and reflecting the latest regulatory requirements, we have introduced our Sustainability Pledge outlining our key ambitions for the years to come, centred around Climate Action, Ethical Conduct and Social Impact. As one highlight in the area of diversity, we were happy to see the share of female professionals recruited to the company increasing to 34% (32%). As a special and timely activity, all our employees took training on Responsible AI during the second half of the year. Our sustainability achievements for the year will be fully reported in the Sustainability Statement to be published as part of our Annual Report on 4 March.

Regarding the ongoing devastating situation in Ukraine, we will continue to support our local colleagues there. We are very proud of our people for the commitment and courage they keep on showing, and our hearts and minds remain with them.

The soft market environment is expected to continue into 2025 with market recovery expected in the second half. We continue to firmly execute on our strategic agenda towards strong software and digital engineering businesses. While we currently focus on resilient business performance, our businesses are gearing towards future growth opportunities." 

Financial performance by segment

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 14 February at 10.00 a.m. EET (9.00 a.m. CET, 8.00 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.

To take part in the questions and answers session after the presentation you will need to dial in by phone. You can access the teleconference by registering on this link. After the registration you will be provided phone numbers, user ID and a conference ID to access the conference.

The event 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 23 000 experts globally specialize in cloud, data, and software, serving thousands of enterprise and public-sector customers in around 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. https://www.tietoevry.com