Nordic integrator Tieto reports a strong quarter with continued profitability improvement as well as "encouraging growth" in IT services in its interim report published on 25 April.
Tieto made an operating profit (excl. one-off items) of €34.5m (€31.0m) in the first quarter of 2014. In IT services, organic growth in local currencies was 3.3%. The company will also continue its future investments in key offerings, partly compensating for the anticipated decline in traditional IT services, it says.
"I'm pleased with the strong execution across many of our businesses in the first quarter. Our longer-term growth investments in areas such as Customer Experience Management, Industrial Internet, Lifecare and cloud services are well positioned to help us take advantage of current market demand," comments Kimmo Alkio, President and CEO.
"While the first-quarter profitability performance reflects clear improvement in utilisation rates, both competitiveness and profitability will remain high on our agenda. New technologies, such as cloud services, will continue to play a big role in driving efficiency and supporting renewal of our customers' business. This, coupled with simplification and automation enable continuous efficiency improvement. At Tieto, we are well positioned to harness new technologies in driving our competitiveness," concludes Kimmo Alkio.