Q1 2025 Tietoevry Oyj Earnings Call Transcript
Key Points
- 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.
- The company reported a strong cash flow from operations, amounting to EUR 98 million, and a strengthened order backlog, indicating competitiveness in the market.
- TietoEVRY Corp (STU:TTEB) secured important customer contracts in its Banking and Care segments, demonstrating continued success in these areas.
- The company is actively investing in AI market adoption, with successful project wins in the AI domain, supporting future growth and expansion opportunities.
- The order backlog showed an 18% year-over-year growth, primarily driven by the Care business, indicating a healthy pipeline for future revenue generation.
- TietoEVRY Corp (STU:TTEB) experienced an organic growth decline of 4% in Q1, impacted by a soft market environment and fewer working days.
- 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.
- The company faces increased macroeconomic uncertainty, impacting customer decision-making and demand, particularly in the consulting domain.
- The Industry segment reported negative growth, specifically impacted by declines in pulp, paper, and fibre, with customers postponing investments.
- The company anticipates continued negative growth in Q2, driven by ongoing market softness and increased pressure on margins due to salary inflation.
Good morning, and welcome to Tietoevry's first quarter earnings webcast. My name is Tommi Jarvenpaa. I'm the Head of Tietoevry's Investor Relations. This morning we will go through our earnings development and key highlights of the quarter. At the end of the presentation, we will also go through the special topic of the day, the CEO transition, which we published earlier this morning.
After that, we will host the usual Q&A session. With me here today are our CEO, Kimmo Alkio; and CFO, Tomi Hyrylainen, who will go through the highlights and results of the quarter. Our Chairperson of the Board, Tomas Franzen, and Endre Rangnes, our newly appointed Interim CEO, will join the call towards the end of the presentation.
At this point, I would like to hand over to Kimmo. Please go ahead.
Thank you very much, Tommi, and a warm welcome to our first quarter interim session. Q1 main thematic would be on -- as visible here,
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