- Organic growth 2% - adjusted operating margin 12.2%
-
Strong performance in software businesses - growth of 13% in
Industry Software and 9% in Financial Services Solutions -
Significant wins demonstrating competitiveness - top 5 contracts represent value of
EUR 300 million - Objective for leverage achieved - net debt/EBITDA below 2
The full interim report with tables is available at the end of this release.
4-6/2021 | 4-6/2020 | |||
Revenue, EUR million | 721.7 | 686.4 | ||
Change, % | 5.1 | 70.2 | ||
Organic growth1), % | 1.5 | -1.0 | ||
Operating profit (EBIT), EUR million | 139.7 | -9.8 | ||
Operating margin (EBIT), % | 19.4 | -1.4 | ||
Operating profit (EBITA3)), EUR million | 151.5 | 1.5 | ||
Operating margin (EBITA3)), % | 21.0 | 0.2 | ||
Adjusted2) operating profit (EBITA3)), EUR million | 88.3 | 80.4 | ||
Adjusted2) operating margin (EBITA3)), % | 12.2 | 11.7 | ||
Adjustment items2), EUR million | -63.2 | 78.9 | ||
Order backlog, EUR million | 3 275 | 3 310 | ||
Net debt/EBITDA | 1.6 | 2.9 |
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 2021 unchanged
1) Adjusted for currency effects, acquisitions and divestments.
2) Highly dependent on the development of the Covid-19 pandemic. Assumes that the business environment will return to normal as from the third quarter of 2021.
3) Adjusted EBITA is fully comparable with the previous definition of adjusted EBIT. According to both definitions, amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, impairment charges and other items affecting comparability are excluded - whereas amortization of other intangible assets is included.
CEO's comment
Comment regarding the interim report by
"We are pleased to see that our focused growth agenda materialized during the second quarter while delivering solid profitability. Overall second-quarter performance supports our outlook for the second half of the year. Performance was strongest in our software businesses, with revenue up by over 13% in
High contract-closing activities characterize our second quarter and support our revenue ambitions. We were able to deliver strong order intake in our Cloud & Infra business. Significant wins demonstrate our competitiveness - the top 5 contracts contribute around
Our adjusted operating margin in the second quarter was solid at 12.2%, supported especially by the
Market activity continued to develop towards more normalized levels as the business impact from the pandemic decreases. At the same time, the demand for talent is increasing. We are consequently increasing our recruitment capacity to support our growth ambitions and continue to globally attract talent at a healthy pace by providing exciting careers and interesting projects with leading customers - and by creating a flexible working environment with a culture that promotes openness, trust and diversity.
During the summer period we are actively participating in public dialogues promoting opportunities in the technology sector with an emphasis on diversity, equal opportunity and sustainability. Through our active engagement, we also aim to tangibly contribute to common sustainability objectives with our customers."
Financial performance by segment
Revenue, EUR million | Revenue, EUR million | Growth, % | Organic growth, %3) | Adjusted1) operating profit2), EUR | Adjusted1) operating profit2), EUR | Adjusted1) operating margin2), % | Adjusted1) operating margin2), % | |||||||
4-6/2021 | 4-6/2020 | 4-6/2021 | 4-6/2020 | 4-6/2021 | 4-6/2020 | |||||||||
172.2 | 162.7 | 6 | 1 | 23.0 | 17.8 | 13.4 | 11.0 | |||||||
Cloud & Infra | 218.5 | 232.0 | -6 | -10 | 13.2 | 26.6 | 6.0 | 11.5 | ||||||
139.1 | 122.0 | 14 | 13 | 32.2 | 18.4 | 23.1 | 15.0 | |||||||
Financial Services Solutions | 118.7 | 101.9 | 17 | 9 | 16.3 | 12.0 | 13.7 | 11.8 | ||||||
Product Development | 36.1 | 34.4 | 5 | 2 | 3.7 | 4.0 | 10.4 | 11.5 | ||||||
Other4) | 37.0 | 33.4 | 11 | 19 | 0.0 | 1.6 | -- | -- | ||||||
Total | 721.7 | 686.4 | 5 | 2 | 88.3 | 80.4 | 12.2 | 11.7 |
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.
4) "Other" consists of International Operations, including digital consulting services for markets outside the Nordics. "Other" also includes unallocated Group costs.
For further information, please contact:
Tomi Hyryläinen, Chief Financial Officer, tel. +358 50 555 0363, tomi.hyrylainen (at) tietoevry.com
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