TietoEVRY Oyj (TIETOS) Q3 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

This morning, we will go through our earnings development and outlook. With me here today are our President and CEO Kimmo Alkio and CFO Tomi Hyryläinen, who will next go through the highlights and results of the quarter. Kimmo, please go ahead. Thank you very much, Tomi. A warm welcome also mine and Tomi's behalf to our third quarter results announcement. Our third quarter performance characterized as a bit provided insight already a week ago, given that we did the guidance change, let us go through the main drivers of the current environment and third quarter performance. Our main message being that improved profitability in a weakening market environment. The weakening market environment contributing to our revenue development, revenue decline of 1%. Furthermore, high degree of attention on the resilience of the company, resilience of all the businesses, a lot of attention on the cost-based management, enabling us to improve profitability to 13.5% level. Today, we are also confirming that the strategic review of Tieto EveryTech services is progressing, and we have advanced to an exclusive process with a non-industrial buyer. Just to move forward again, I want to reiterate, confirm the message from a week ago in terms of the guidance change, organic growth around minus 2% from the prior 0 to 3% level, and just to confirm, which we are elaborating on today by business as well, that the softening market environment contributing to the revenue challenges when we talk about the short term. While the profitability level, the guidance at the 12.3 to 12.7 range from the prior 12.0 to 13.0. And the driver for the profitability guidance narrowing and development naturally has to do with the resilience and the profitability development overall. I'd like to also confirm our pe...