In This Article:
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Organic Growth: Negative 4% in Q1, impacted by a soft market environment.
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Adjusted EBITA: 10.6%, with a temporary cost burden of 1.8 percentage points due to IFRS 5.
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Cash Flow from Operations: EUR 98 million.
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Order Backlog Growth: 18% year-over-year, with a 4% increase from Q4 to Q1.
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Tech Services Divestment: Expected to close in Q3, impacting Q1 reporting as discontinued operations.
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Net Loss for Tech Services: Negative EUR 92.3 million, including an impairment loss of EUR 107 million.
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Interest-Bearing Net Debt: EUR 807 million, with a net debt-to-EBITDA ratio of 2.2 times.
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Employee Attrition Rate: 7.9% over the last twelve months.
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Salary Inflation Expectation: Between 4% and 5% for the year.
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Guidance for Organic Growth: Expected to be between -2% and +1% for the year.
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Guidance for Adjusted EBITA: Expected to be between 12% and 13% for the year.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TietoEVRY Corp (STU:TTEB) announced a significant strategic transformation with the divestment of Tech Services, allowing the company to focus on asset-light businesses with greater growth potential.
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The company reported a strong cash flow from operations, amounting to EUR 98 million, and a strengthened order backlog, indicating competitiveness in the market.
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TietoEVRY Corp (STU:TTEB) secured important customer contracts in its Banking and Care segments, demonstrating continued success in these areas.
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The company is actively investing in AI market adoption, with successful project wins in the AI domain, supporting future growth and expansion opportunities.
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The order backlog showed an 18% year-over-year growth, primarily driven by the Care business, indicating a healthy pipeline for future revenue generation.
Negative Points
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TietoEVRY Corp (STU:TTEB) experienced an organic growth decline of 4% in Q1, impacted by a soft market environment and fewer working days.
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Profitability was affected by an adjusted EBITA of 10.6%, with a temporary cost burden of 1.8 percentage points due to IFRS 5 related accounting.
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The company faces increased macroeconomic uncertainty, impacting customer decision-making and demand, particularly in the consulting domain.
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The Industry segment reported negative growth, specifically impacted by declines in pulp, paper, and fibre, with customers postponing investments.
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The company anticipates continued negative growth in Q2, driven by ongoing market softness and increased pressure on margins due to salary inflation.