Basically, yes. However, I also thought that maintaining profitability would enable receiving the full 300 million purchase price, but the message linked by Opa certainly changes the overall picture. In practice, it therefore seems that Techservices was sold for 230 million and nothing significant is coming on top of that. Still a miserable performance, although this has, of course, been discussed here many times already.
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The earn-out payment’s half-life is just over a month, from €70M to €30M. Simply staggering.
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Tietoevry Banking has signed a five-year strategic agreement with the Norwegian Lokalbank group. Tietoevry Banking will provide the group with a comprehensive banking platform tailored for the Norwegian market, offering strong data security and meeting regulatory requirements. The complete solution includes core banking services, mobile and online banking services, payment systems, card services, and financial crime prevention tools. The agreement includes an option for two two-year extensions.
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Tietoevry Create has been selected as the new framework agreement partner for the Digital and Population Data Services Agency (DVV) in two different technology areas in a broad IT expert services tender.
Tietoevry Create achieved a significant first place in technology area (3C: Android, iOS, Kotlin/Java/Swift), where two suppliers were selected. The estimated annual scope of this area is 1,000–4,000 person-days. This area covers, among other things, the Suomi.fi-messages mobile applications and the development of the European Digital Identity Wallet (ILO project). Tietoevry Create’s expert team received the highest scores in the interview and group task section of the area.
In the second technology area (1A: NodeJS, TypeScript/JavaScript), which is the broadest in the tender, Tietoevry Create ranked fourth among seven selected suppliers. The estimated annual scope of this area is 12,000–20,000 person-days. In this area, DVV’s services include, among others, the VTJ change interface and services being completed in the OIVA project and the GEN replacement project.
Tietoevry Create participated in three of the five areas of the Digital and Population Data Services Agency’s tender, the total value of which is approximately 250 million euros. A procurement decision has now been made for two of these areas. The new contract period is estimated to start in August 2025. The framework agreements are valid until the end of 2030, and assignments based on them may continue until the end of 2031.
The procurement volumes and values presented in the tender request are estimates by the Digital and Population Data Services Agency, and the client is not obligated to make specific purchases. Tietoevry Create received the procurement decisions for two areas on June 11, 2025. The decisions are legally binding after the appeal period according to the Procurement Act has expired.
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Joni Grönqvist has provided comprehensive comments on Tietoevry’s pre-quiet period analyst call. 
Tietoevry held an analyst call yesterday before the start of the quiet period. During the call, the company reviewed the market, outlook, and commented on the situation of various segments. In the big picture, the market situation remains weak, and visibility for the rest of the year is also poor. However, the steps are still in place to return to a growth path by the end of the year. Below are the background and key takeaways before the Q2 report.
The demand weakness that began a couple of years ago expanded for Tietoevry in Q3’24 and affects all business operations in one way or another. In Q1’25, revenue decreased in all business operations. However, the order book turned upwards and grew by 4% from the previous quarter, led by Banking and Care, which supports the turnaround of revenue to growth by the end of the year.
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Tietoevry will publish its Q2 report on Tuesday, and here are Joni’s preliminary comments on it.
The market situation has remained difficult, and we expect revenue to have declined further in Q2. We forecast profitability to have been at the comparison period’s level. Profitability is weighed down by wage inflation and weak utilization rates. On the other hand, numerous efficiency programs support profitability. We consider new efficiency measures highly likely. We expect the company to reiterate its guidance at least for Q2 despite the risk of an earnings warning, as our and the consensus forecasts are at the very bottom end of the guidance.
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Just so no one misses it, tomorrow, despite possible summer holidays, there’s a good reason to set your alarm clocks, because @Joni_Gronqvist promised to host a results live stream starting at 8:55 AM! 
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It has gone so well, and the management has delivered quality for years, so why not take a CEO from within the company.
Change is, of course, always a risk; something like order and hope for the future might accidentally emerge.
I haven’t familiarized myself with the chosen one, so in that sense, nothing personal; he might even be the right guy to take the company forward. Let’s hope so.
Well, I got to grumble about the management of Finnish companies again. Sorry.
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@Hermit Do you mean now that the share price has done well or the company’s business has done well?
Earnings have risen, dividend has risen, dividends distributed generously and not invested heavily in foolish things, unlike many other companies, with nicely growing software business underneath, returns on capital good?
Share price has fallen, ok. And business sold at a rather low valuation. It’s regrettable how little and short-sightedly investors look at companies and their true earning power/cash flow generation capability (a better metric).
I myself look at the company’s cash flow generation capability/dividend paying capacity, by which the share value should be determined. And I compare it to the share price and do not blindly define a company’s success based on the share price (e.g., L&T case: cash flow has remained the same for the last 10 years and at the same time the share price has more than halved)
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Indeed, the fumbling around with various business operations over the last year and a half is a sign of a lack of strategy and leadership. Management has been completely led astray by consultants and M&A bankers, and consequently, the company’s assets have been gratuitously donated to the aforementioned parties on an incomprehensible scale. By consideration, I mean value creation.
This is a bit like Telia; everything else is nice and exciting except for the long-term growth of shareholder value based on a good strategy and continuous improvement of efficiency. I own shares in the company and I am sorry about it.
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Quite a reasonable result considering the stock was already pushed down to the €14 level!
@James_Bondi The stock can indeed fall even to the €0 level if investors are short-sighted and panic. However, the fundamentals look reasonably good, and my own estimate of the fair value is completely different from the current price.
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The CEO has for three months discussed and reviewed matters with stakeholders. Customer feedback has likely been weak, as the new CEO states the following:
“Based on the feedback we have received from our key stakeholders, we must restore our customers’ trust by placing the customer at the center of our operations, and we must strengthen sales. We operate in a highly competitive industry, and improvement in these areas is critical.”
It is indeed very surprising how this company has been managed for the past several years, when such a fundamental conclusion has now been reached? Based on such comments, trust in the competence of the board members erodes. Furthermore, should the entire middle management in different units of the Tietoevry organization be fired, because attitudes can be deeply ingrained and part of the work culture?
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Cash flow is positive at €34 million, down €10 million from a year ago.
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The “Customer First” approach emphasized by CEO Endre Rangnes is precisely the only right way 
The same applies to all competitors. This old truth was forgotten in the “employee first” thinking of the last decade by many IT service companies when competing for workforce. Not by all, of course.
Many IT service companies have already mentioned that now the competition is for customers. This is not the same as “customer first.” The mindset must take root at the operational level for a reputation as a group primarily pursuing the customer’s best interest to emerge. It’s a long road if one has strayed from the path.
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Do you mean that the stock wouldn’t go back to the same prices?
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This is now very interesting.
The result was therefore subdued - both revenue and adjusted operating profit a few million below analysts’ expectations. And then on top of that, poor reported figures due to the Banking write-down.
At the same time, the new CEO starts quite boldly: cost savings and emphasizing a customer-centric approach. OP, in any case, expected a positive share price reaction in its morning review, and now it’s -8.7% on the board.
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They will have a lot of work to do for the rest of the year if they want to reach their EBITA guidance.
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It’s not just about their work; a few large industries should be boosted, and through that, investments and projects started. That would certainly be enough for various actors. There are certainly many reasons within Tiedossa itself, but it doesn’t look easy for other IT operators either.
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You are absolutely right. The entire Finnish IT sector is having a difficult time. An unfortunate situation. I only have Digia left and a little bit of Qt. They aren’t doing very well either.
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