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Investing.com -- Tietoevry reported third-quarter results largely in line with expectations, with profitability temporarily inflated by a one-off court ruling in its Banking division.
The company’s shares rose 6.5% following the announcement.
The IT services provider posted group organic growth of 4%, though this figure dropped to -1% when excluding the court-related revenue. Adjusted EBITA increased 57% year-over-year to €88 million, resulting in a 19.3% margin compared to 12.8% in the same period last year. On a clean basis, excluding the one-off effect, the margin stood at 15.2%.
In the Banking segment, revenue grew 14% on a like-for-like basis, though underlying growth was -2% without the €22 million non-recurring revenue from the court ruling. The adjusted margin in this division surged to 27.8%, with the underlying figure at 16.1%, supported by cost savings and mix improvement.
The Create segment saw a 3% like-for-like decline as demand remained soft, though efficiency measures helped lift the EBITA margin to 12.8%, an increase of 70 basis points year-over-year. Cost control and SG&A cuts supported profitability despite continued weakness across geographies.
The Care segment delivered 3% like-for-like growth with a stable margin of 31.7%, unchanged from the previous year. Finnish public-sector contracts sustained growth while legacy product phase-outs weighed on results. The company’s international expansion in Catalonia is ongoing.
The Industry segment showed 4% like-for-like growth, reflecting a modest recovery supported by an improved order backlog and efficiency gains. The margin improved to 19.4% from 16.3%, aided by cost optimization efforts.
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