Salem Radio Network News Friday, December 3, 2021

Science

Nordic IT services firm TietoEvry’s quarterly profit beats expectations

(Corrects EBITA margin in the last paragraph)

(Reuters) -Nordic IT services provider TietoEvry reported on Tuesday third-quarter operating profit above analysts’ expectations, driven by strong growth in its software businesses.

The Finnish company, which finalised the acquisition of Norway’s Evry in December 2019, said its adjusted operating profit before amortisation (EBITA) rose to 94 million euros ($109.40 million) from 90 million a year earlier, compared with analysts’ 88-million-euro estimate in a company-provided poll.

“Our software businesses had good overall performance, especially Industry Software, with organic growth of 10% and a 28% margin,” Chief Executive Officer Kimmo Alkio said in a statement.

On group level, underlying sales were 648 million euros in the July-September period, slightly above last year but below consensus estimate of 656 million.

The provider of cloud services, software solutions and banking technology had returned to sales growth in the second quarter as demand normalised from last year when revenue streams were hit by the COVID-19 pandemic and contract losses prior to the Evry merger.

Tieto repeated its forecast for roughly flat underlying sales in 2021, while adjusted EBITA margin should improve to 13%-14% from 12.7% last year.

Adjusted EBITA margin was 14.5% in the third quarter.

($1 = 0.8593 euros)

(Reporting by Milla Nissi in Gdansk; Editing by Christopher Cushing and Uttaresh.V)

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