· Adjusted operating margin 14%, supported by resilient business mix
· Organic revenue growth -4% - impacted by Covid-19
·
· Integration on schedule and synergy contribution to profit
· Guidance restored as announced on 20 October
The full interim report with tables is available at the end of this release.
About this report
Tieto's and
COMPARABLE FINANCIAL INFORMATION for illustrative purposes
The new operating model became effective on
[][][][]
7-9/2020 7-9/2019
Revenue, EUR million 643.8 639.2
Change, % -7.1 -
Organic growth[1)], % -4.3 -
Operating profit (EBIT), EUR million 28.6 67.6
Operating margin (EBIT), % 4.4 9.7
Adjusted[2)] operating profit (EBIT), EUR million 90.2 91.2
Adjusted[2)] operating margin (EBIT), % 14.0 13.2
One-time items, EUR million 61.5 23.6
Order backlog, EUR million 3 197 -
Net debt/EBITDA[3)] 2.9 -
[1)] Adjusted for currency effects and impact from acquisitions and divestments
[2)] Adjusted for amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, goodwill impairment charges and other items affecting comparability.
[3) ]EBITDA is 12-month average including the full period for both Tieto and
Full-year outlook for 2020
[1)] Adjusted for amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, goodwill impairment charges and other items affecting comparability
CEO's comment
Comment regarding the interim report by
"I'm pleased to share that we have made strong progress in terms of overall performance and the integration of
While Covid-19 had a higher negative impact on revenue in the third quarter than in previous quarters, we achieved strong adjusted operating profit of 14%. Our integration continues to progress at a fast pace and synergy realization is contributing to business performance, as communicated earlier. We are well on our way to realizing the value creation potential of the ongoing merger for the benefit of our customers, employees and shareholders.
Of our businesses, we are most delighted with the positive development of our
We are pleased to have reinstated our annual guidance, as announced on
I would like to thank all
Comparable financial information for illustrative purposes
This section includes comparable financial information with comparison figures restated to account for the new segment structure.
Financial performance
[][][][][]
Revenue, Revenue, Growth, Organic Adjusted[1)] Adjusted[1)] Adjusted[1)] Adjusted[1)]
EUR EUR % growth, operating operating operating operating
million million %[2)] profit, EUR profit, EUR margin, % margin %
million million
7-9/2020 7-9/2019 7-9/2020 7-9/2019 7-9/2020 7-9/2019
Digital 143.0 162.6 -12 -9 21.1 18.5 14.7 11.4
Consulting
Cloud & 219.3 244.7 -10 -9 24.0 36.0 10.9 14.7
Infra
Industry 115.1 118.6 -3 -1 25.0 19.5 21.7 16.4
Software
Financial 101.2 103.4 -2 3 15.4 15.7 15.2 15.2
Services
Solutions
Product 33.3 34.3 -3 -4 4.1 3.1 12.3 9.0
Development
Services
Other 31.9 29.7 7 16 0.6 -1.6 - -
Total 643.8 693.2 -7 -4 90.2 91.2 14.0 13.2
[1)] Adjusted for amortization of acquisition-related intangible assets, restructuring costs, capital gains/losses, goodwill impairment charges and other items affecting comparability
[2)] 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 (tomi.hyrylainen%40tietoevry.com)
A teleconference for analysts and media will be held on Tuesday
Teleconference numbers
Conference code: 96660772#
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.
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