Q2 2024 Tietoevry Oyj Earnings Call Transcript
Key Points
- TietoEVRY Corp (STU:TTEB) reported organic growth of 1%, driven by its software businesses.
- Improved profitability of 11%, supported by Tietoevry Tech Services.
- Strong customer wins and order intake with a book-to-bill ratio of 1.3.
- Recognition as one of Europe's Climate Leaders for 2024 by Financial Times and one of the World's Most Sustainable Companies by Time Magazine.
- Healthy cash flow from operations of EUR68 million and a 2% growth in the order backlog.
- Softer IT services market expected to continue in the second half due to economic and geopolitical instability.
- Mixed revenue development in Tietoevry Create, with challenges particularly in Sweden.
- Profitability in the Banking segment impacted by higher technology costs and increased depreciation of capitalized R&D.
- Organic growth in Tietoevry Care only 1%, impacted by the health and social care reform in Finland.
- Traditional infrastructure services in Tietoevry Tech Services declined by 5%, and end-user services were down by 16%.
Good morning, and welcome to Tietoevry's second-quarter earnings webcast. My name is Tommi Jarvenpaa, the Head of Tietoevry's Investor Relations. This morning, we will go through our earnings development and outlook in the second quarter. With me here today are our President and CEO, Kimmo Alkio; and CFO, Tomi Hyrylainen, who will next go through the highlights and results of the quarter. Kimmo, please go ahead.
Very well. Thank you very much, Tommi, for the introduction and a warm welcome to everybody again, to a very interesting second quarter performance for Tietoevry.
Second quarter performance characterized what we call as a steady performance in a mixed market. Overall, quite a healthy overall performance in light of the market dynamics, the main factors being organic growth of 1%, driven by especially our software businesses, improved profitability of 11%, supported especially by the development of Tietoevry Tech Services
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