Nordic IT services firm TietoEVRY Q3 profit slips

Nordic IT services provider TietoEVRY reported a slight fall in its July-September quarterly profit on Tuesday, as the spread of the novel coronavirus hit sales.

By Tarmo Virki

Oct 27 (Reuters) - Nordic IT services provider TietoEVRY TIETO.HE reported a slight fall in its July-September quarterly profit on Tuesday, as the spread of the novel coronavirus hit sales.

The company, which finalised the takeover of Norwegian EVRY's businesses in December last year, posted an adjusted operating profit of 90.2 million euros ($106.6 million), compared with a pro forma 91.2 million a year earlier.

Analysts in a company-provided poll had pegged the profit at 86.6 million euros.

The company's sales dropped 7% from a year ago to 643.8 million euros, missing all analyst forecasts which ranged from 644.7 million euros to 664.4 million euros.

"COVID-19's impact on TietoEVRY's third-quarter revenue was 4% and the company currently anticipates that the pandemic will have a similar impact on the fourth quarter," it said.

The company's largest unit by sales, Cloud and Infra, saw sales falling 10% from a year ago, missing all analysts forecasts, as contracts lost in 2019, unusually high sales in a year-ago quarter, and the COVID-19 pandemic took a toll.

A week ago, TietoEVRY had restored its full-year guidance, expecting its comparable 2020 adjusted earnings before interests and taxes to increase from previous year's levels.

(Reporting by Tarmo Virki in Tallinn; Editing by Sam Holmes and Uttaresh.V)

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

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