Nordic firm TietoEVRY to pay dividend as Q2 underlying profit jumps

Nordic IT services provider TietoEVRY reported on Friday a rise in April-June quarter underlying profit, helped by cost cuts following the takeover of EVRY business last year, and said it would pay out dividend to its shareholders.

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July 24 (Reuters) - Nordic IT services provider TietoEVRY TIETO.HE reported on Friday a rise in April-June quarter underlying profit, helped by cost cuts following the takeover of EVRY business last year, and said it would pay out dividend to its shareholders.

The company, which finalised the takeover of Norwegian EVRY's businesses in December 2019, said its adjusted operating profit came in at 80.4 million euros ($93.2 million), compared with a pro forma 69.8 million last year.

"Our integration continues to proceed well and we are increasing the outlook for merger synergies," Chief Executive Kimmo Alkio said in a statement.

Tieto said it raised the merger-related synergies target to 100 million euros from 75 million.

The Nordic company decided to pay out a dividend of 0.635 euros per share, half of 1.27 euros decided by shareholders in April, citing pandemic-related uncertainty and large one-time items.

On reported level, the company faced an operating loss of 9.8 million euros in the second quarter as it booked 90.1 million euros in non-recurring items.

"We expect that one-time items will return to normalised levels in 2021 as the integration process continues," Alkio said.

($1 = 0.8624 euros)

(Reporting by Tarmo Virki in Tallinn; Editing by Jacqueline Wong and Sherry Jacob-Phillips)

((tarmo.virki@thomsonreuters.com; +358925166112;))

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