Consultant and software company Taevryn published its October -December interim report. Net sales and profits were from the fourth quarter of last year and the forecasts of analysts.
The company’s net sales fell to EUR 698.7 million from EUR 752.2 million during the comparison period. Information service Spare research The average of 14 forecasts from the analyst predicted that it had fallen to EUR 716.8 million.
The adjusted operating profit (EBITA) slipped to EUR 89.3 million from EUR 108.4 million, while analysts expected EUR 95.4 million. The result of the profit fell by 12.8 % from 14.4 %. The analyst figures predict 13.3 percent.
The company’s unnecessary loss per share was EUR 1.41, compared with EUR 0.46 during the comparison period. The expectations were a profit of EUR 0.39. The adjusted earnings per share fell to EUR 0.49 from EUR 0.63, while expected to be EUR 0.54.
Tietoevry says he has made a 200 million non-money-impairment loss loss in the Tietoevry Tech Services business area during the annual impairment testing, which resulted in an unnecessary operating profit of EUR 144.1 million. This is not included in the corrected EBITA result.
The operating profit reported during the comparison period was EUR 84.1 million. Annual analysts expected an average of EUR 68.7 million.
The company’s order backlog increased by 2 % by the end of the year.
The Board of Directors of Tietoevry proposes a dividend per share of EUR 1.50 for distribution of the 2024 result. The dividend of 2023 was paid EUR 1.47 per share. Analysts expected a proposal of EUR 1.50.
The company guides that organic growth is between -3 and 1 % and that the entire year’s adjusted operating margin (EBITA) is 12.0-13.0 % in 2025.
Prior to the publication of the interim report, analysts predicted an average of 0.7 % organic revenue growth and a 12.6 % adjusted operating margin for this year.
Embryo: challenges ahead of the first year
“The company’s fourth quarter was challenging with the current economic environment that affects all business areas,” commented CEO Kimmo Alkio in the release.
The company has five business areas. Create offers consultation and Tech Services offers, among other things, data center services. Banking, Care and Industry areas design and sell software -owned software to their own areas.
Throughout the year, organic growth was -2 % and profitability of 12.3 percent. Our results remained stable in the market, which was weaker than we used to estimate, ”Alkio says.
On average, analysts expected last year’s net sales that organically decreased by 1.9 % and the adjusted operating margin to 12.4 %.
“During the year, we launched efficiency throughout the company to secure our current and future competitiveness, which focuses on the expertise of our global staff.”
“The market environment is expected to continue to be weak in early 2025 and will pick up in the second half of the year. We are still investing in efficiency and at the same time our business area is preparing for future growth opportunities, ”says Alkio.
Tietoevry has considered selling its Tech Services business and has been negotiating. Last year, the company canceled the listing or sale of the Banking business, which was disappointing for investors.
“The strategic evaluation of Tietoevry Tech Services has lasted longer than expected. We have recently achieved significant progress and are looking forward to the assessment during March. The sales process with a non-industrial operator has progressed far, ”Alkio comments
Relief on February 14, 9:31 pm: The government proposes a dividend of EUR 1.50 and not EUR 0.50, as previously written in the story.