CEO's review

 

Digia’s President and CEO Timo Levoranta comments on the second quarter of 2017

“The trend in Digia’s net sales developed positively. Second-quarter net sales saw year-on-year growth of 10.9 per cent. Growth was boosted by good demand for e-commerce solutions and the acquisition of Omni Partners Oy, a digital services company. The national Income Register project that Digia is implementing with the Tax Administration also contributed to Digia’s net sales growth. Outlays on growth are in line with our strategy.

Digia’s operating result was EUR 1.4 million and its EBIT% stood at 5.5 per cent. Profitability was impacted by restructuring and acquisition of EUR 0.3 million as well as investments in growth and recruitment. Our operating result was also impacted by several challenging projects and the investments they required. However, their impact was clearly lower than in the first quarter. June was a good month for both net sales and operating result.

In order to implement our growth strategy, we continued to recruit new experts and also acquired Omni Partners to bolster our expertise in digital services, especially with respect to tailored, open source-based online services as well as service design. 52 people joined Digia as a result of the acquisition. Digia employed 973 people at the end of June, which is 101 more employees than at the end of 2016.

Our customers have a strong need to harness the opportunities afforded by digitalisation in their businesses. We expect that the market will develop favourably during 2017 in comparison to the previous year. Demand for software as a service continues to become ever more commonplace. This model will reduce the cyclicity of business operations and changes the structure and scheduling of income flows, as a result of which one-off licence fees will account for a smaller relative share and income will accumulate over a longer period.

Digia has a strong offering to support the digitalisation of our customers’ business operations. We work every day to earn our position as a visionary partner to our customers in the development of their business operations. Our strength is our Digia team, which consists of expert and constantly developing professionals. We offer solutions for service design and development, as well as for integration and back-end systems. Customers reap the benefits of digitalisation only when the service package has been seamlessly integrated all the way into their back-end systems.

We are continually strengthening our offering and working with our customers to develop their businesses. One of the emerging customer needs is preparing for the requirements of the revised General Data Protection Regulation (GDPR). We have developed our offering to meet this customer need as well.

During 2017, we will continue to develop our competence structure. Our goal is to strengthen the company’s position, particularly in the growing markets for digital services, process digitalisation and the service business, as well as to accelerate the growth of net sales and boost efficiency to improve the profitability of our operations.”

Digia Plc’s Half Year Financial Report, 11 August 2017 at 8:00

Timo Levoranta
President & CEO

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