2016-08-12 07:00:01 CEST
2016-08-12 07:00:01 CEST
REGULATED INFORMATION
Digia Oyj - Half Year financial report
DIGIA'S GROWTH CONTINUES, PROFITABILITY IMPROVES
Helsinki, 2016-08-12 07:00 CEST (GLOBE NEWSWIRE) -- DIGIA PLC HALF YEAR
FINANCIAL REPORT, 1 JANUARY - 30 JUNE 2016, 12 AUGUST 2016 AT 8:00 AM
DIGIA'S GROWTH CONTINUES, PROFITABILITY IMPROVES
Digia Plc and Qt Group Plc's demerger came into force on 1 May 2016. This half
year financial report presents the business operations of Digia Plc, the former
domestic business (continuing operations). Qt Group's business operations are
treated in the half year financial report as discontinued operations; in
addition to Qt's net profit, the reported figures include the demerger expenses
and the difference between the fair values and carrying amounts of net assets
transferred to Qt.
The comparison figures provided in parentheses in this report always refer to
the corresponding period of the previous year, unless stated otherwise.
April-June 2016:
- Net sales EUR 22.4 (20.5) million, up 9.3 per cent
- Operating profit EUR 1.8 (1.7) million, representing 7.9 (8.1) per cent of
net sales
- Earnings per share EUR 0.07 (0.07)
- Earnings per share of discontinued operations EUR 3.64
January-June 2016:
- Net sales EUR 43.8 (39.9) million, up 9.9 per cent
- Operating profit EUR 2.7 (1.9) million, representing 6.2 (4.8) per cent of
net sales
- Earnings per share EUR 0.11 (0.08)
- Earnings per share of discontinued operations EUR 3.65
Digia's net sales continued to grow during the second quarter of 2016. In
January-June, year-on-year growth amounted to 9.9 per cent. The trend in net
sales was supported particularly by growth in the ERP business based on the
company's own technologies, the customised solutions service business,
integration business and financial-sector software solutions business in
Finland.
In January-June, the operating margin also improved, rising to 6.2 per cent as
compared with 4.8 per cent in the corresponding period of the previous year.
After the demerger of Digia and Qt came into force on 1 May 2016, Digia's new
growth strategy aims to strengthen the company’s position, particularly in the
growing markets for digital services, process digitalisation and the service
business. Digia is a visionary partner to its customers in modernising and
developing business processes. The company wants to grow at a significantly
faster pace than the IT market and seeks average annual growth of 15 per cent
during the strategy period. Growth is sought both organically and
inorganically.
During the second quarter, Digia agreed on the acquisition of Igence Oy Ab, a
webshop expert. With this acquisition, Digia expanded its current offering and
expertise, especially in solutions for webshops and commercial product data
management. Igence's technological expertise complements Digia's services
excellently. By combining Igence's expertise with Digia's strong competence in
service design and integration and deep knowledge of processes and background
systems, Digia will create webshop solutions for its customers that are
practical in day-to-day operations and integrated into background systems. The
acquisition was carried out on 1 July 2016 and is reported as part of Digia as
from that date.
Digia reiterates its earlier guidance, estimating that demand will remain
reasonable and net sales will continue to grow during the rest of 2016. The
company expects that in 2016 the operating margin will remain on a par with the
previous year.
GROUP KEY FIGURES
EUR 1,000 4-6/201 4-6/20 Change 1-6/20 1-6/20 Change 2015
6 15 ,% 16 15 ,%
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Continuing operations
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Net sales 22,397 20,489 9.3% 43,829 39,888 9.9% 80,946
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Operating profit 1,777 1,653 7.5% 2,714 1,914 41.8% 5,854
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- % of net sales 7.9% 8.1% 6.2% 4.8% 7.1%
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Net profit 1,542.8 1,554 -0.7% 2,242 1,604 39.7% 4,246
--------------------------------------------------------------------------------
- % of net sales 6.9% 7.6% 5.1% 4.0% 4.8%
--------------------------------------------------------------------------------
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Net profit, 75,646 104 75,771 326 981
discontinued
operations
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Net profit, continuing 77,189 1,658 78,013 1,930 5,228
and discontinued
operations, total
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Return on equity, % 15.3% 17.9% 11.2% 10.4% 13.5%
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Return on investment, % 15.9% 18.0% 12.4% 12.4% 15.6%
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Interest-bearing 12,228 15,229 -19.7% 12,228 15,229 -19.7% 13,513
liabilities
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Cash and cash 1,752 4,842 -63.8% 1,752 4,842 -63.8% 6,710
equivalents
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Net gearing, % 33.9% 27.5% 33.9% 27.5% 16.6%
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Equity ratio, % 50.6% 51.8% 50.6% 51.8% 53.7%
--------------------------------------------------------------------------------
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Earnings per share, 0.07 0.07 0.11 0.08 0.20
EUR, undiluted
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Earnings per share, 0.07 0.07 0.11 0.08 0.20
EUR, diluted
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APPLICATION OF NEW ESMA GUIDELINES
Digia Plc has adjusted the terms used in its financial reporting in accordance
with the new guidelines on Alternative Performance Measures (APM) issued by the
European Securities and Markets Authority (ESMA).
INVITATION TO THE BRIEFING ON THE HALF YEAR FINANCIAL REPORT
Digia will hold a briefing on this half year financial report for analysts on
Friday, 12 August 2016 at 11:00 am, in the Bulsa cabinet of Hotel Scandic
Simonkenttä, Simonkatu 9, 00100 Helsinki, Finland. Welcome.
FURTHER INFORMATION
Timo Levoranta, CEO, tel. +358 (0)10 313 3000 (exchange)
The half year financial report and presentation will be available in the
Investors section at www.digia.com from 11 am on 12 August 2016.
DISTRIBUTION
NASDAQ Helsinki
Key media
www.digia.com
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