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Investing.com -- Shares of Tietoevry Corporation (HEL:TIETO) fell by 7.5% today following the company's announcement of a 7% decline in organic growth, attributing the downturn to weaker market demand affecting all business segments.
The technology service provider also disclosed an adjusted EBITA of 12.8%, which marked an improvement in profitability for its Care and Banking divisions despite the overall challenging conditions. The company reported a strong operating cash flow of EUR 128 million.
While Tietoevry's full-year profitability proved resilient, with a proposed increased dividend of EUR 1.50 per share, up slightly from EUR 1.47 the previous year, this was not enough to assuage investor concerns over the company's near-term growth prospects.
According to Tietoevry's press release, the fourth quarter posed significant challenges due to the current economic environment, which impacted all business areas. Despite the negative organic growth rate, the company managed to maintain solid profitability, driven by a strategic focus on resilience. The robust operating cash flow for the year was a highlight, surpassing the previous year's levels and contributing to the Board's decision to propose a dividend increase.
Looking ahead, Tietoevry's full-year outlook for 2025 forecasts organic growth ranging between -3% and +1%, with a full-year adjusted operating margin expected to be between 12.0% and 13.0%. These figures compare to a revenue of EUR 2,802.6 million and an adjusted EBITA of 12.3% reported for 2024.
The company also mentioned that the strategic review of Tietoevry Tech Services is expected to conclude in March, with the sales process in its final stages and a non-industrial buyer at the forefront.
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