Finland-headquartered Tieto has posted a solid set of third quarter results ahead of its completed merger with Norway's EVRY in the next few months. It reported a “record-high” third-quarter adjusted profit of €50m, with a margin of 13%.
Revenues increased by 3.4% to €379.6m. Tieto expects its full-year adjusted operating profit (EBIT) to increase from the previous year’s level of €168m in 2018.
The company recently announced the new proposed TietoEVRY Group leadership team to lead the combined near €3bn-turnover company, once the merger is completed.
Kimmo Alkio (pictured), president and CEO of Tieto, who will head up the merged companies, said: "I am very pleased that we delivered a record-high third-quarter performance. It is gratifying to see all of our businesses performing well, and delivering 5% local currency growth. Our hybrid infrastructure outperformed the market with favourable volume development and cloud sales growth of 23%.”
He added: “Following the completion of our significant organisational change in the early part of this year, operational execution was at a healthy level in the third quarter. Our global Tieto community has quickly adapted to the ongoing strategic and operational change.”
He said integration planning for the merger of Tieto and EVRY is “on schedule as we wait for approvals from the competition authorities”. Following the completion of the merger Alkio will be the CEO of TietoEVRY. Per Hove, CEO of EVRY, will continue to lead EVRY until closing, after that he will work with Alkio on “special projects” and TietoEVRY integration.
Headquartered in Finland, Tieto has around 15,000 staff across 20 countries. Its turnover is around €1.6bn and is listed on the Nasdaq in Helsinki and Stockholm. EVRY also does business in 20 countries, employs 8,800 and is listed on the Oslo Stock Exchange.
