Digia Plc
Stock Exchange Release
7 August 2025 at 15:00 PM EEST
Digia's profitable growth has continued: Net sales for the review period increased by 3.2 per cent. One-off investments have been made in international growth and competitiveness.
April-June 2025
- Net sales: EUR 53.7 (52.1) million, up 3.2 per cent
- Operating profit (EBITA): EUR 3.1 (4.2) million, down 26.0 per cent; EBITA margin: 5.8 (8.1) per cent of net sales
- Operating profit (EBIT): EUR 2.2 (3.5) million, down 35.4 per cent; EBIT margin: 4.2 (6.6) per cent of net sales
- Earnings per share: EUR 0.06 (0.09)
- Acquisition of the Polish company Savangard Sp.zo.o.
- non-recurring expenses of EUR 0.4 million
- Improving operational efficiency
- non-recurring expenses of EUR 0.7 million
January-June 2025
- Net sales: EUR 107.5 (105.7) million, up 1.7 per cent
- Operating profit (EBITA): EUR 7.7 (9.7) million, down 21.2 per cent; EBITA margin: 7.1 (9.2) per cent of net sales
- Operating profit (EBIT): EUR 6.1 (8.2) million, down 25.5 per cent; EBIT margin: 5.7 (7.8) per cent of net sales
- Earnings per share: EUR 0.16 (0.22).
- Return on investment: 10.1 (15.1) per cent
- Equity ratio: 43.7 (46.9) per cent
- Acquisition of the Polish company Savangard Sp.zo.o.
Unless otherwise stated, the comparison figures provided in parentheses refer to the corresponding period of the previous year.
Group key figures
| % | |||||||||||||
| EUR 1,000 | 4-6/ 2025 | 4-6/ 2024 | Change, % | 1-6/ 2025 | 1-6/ 2024 | Change, % | 1-12/ 2024 | ||||||
| Net sales | 53,741 | 52,062 | 3.2% | 107,517 | 105,710 | 1.7% | 205,672 | ||||||
| Operating profit (EBITA) | 3,120 | 4,219 | -26.0% | 7,673 | 9,742 | -21.2% | 21,161 | ||||||
| - as a % of net sales | 5.8% | 8.1% | 7.1% | 9.2% | 10.3% | ||||||||
| Operating profit (EBIT) | 2,232 | 3,455 | -35.4% | 6,115 | 8,206 | -22.6% | 18,208 | ||||||
| - as a % of net sales | 4.2% | 6.6% | 5.7% | 7.8% | 8.9% | ||||||||
| Result for the period | 1,515 | 2,460 | -38.4% | 4,228 | 5,875 | -28.0% | 13,291 | ||||||
| - as a % of net sales | 2.8% | 4.7% | 3.9% | 5.6% | 6.5% | ||||||||
| Return on equity, % | 10.1% | 15.4% | 16.7% | ||||||||||
| Return on investment, % | 10.1% | 15.1% | 16.6% | ||||||||||
| Cash flow from operations | 6,989 | 13,234 | -47.2% | 25,049 | |||||||||
| Interest-bearing net liabilities | 25,023 | 17,705 | 41.3% | 11,642 | |||||||||
| Net gearing, % | 29.7% | 23.2% | 13.9% | ||||||||||
| Equity ratio, % | 43.7% | 46.9% | 52.9% | ||||||||||
| Number of personnel at period-end | 1,655 | 1,563 | 5.9% | 1,576 | |||||||||
| Average number of personnel | 1,620 | 1,558 | 4.0% | 1,607 | 1,551 | 3.6% | 1,553 | ||||||
| Shareholders' equity | 84,134 | 76,274 | 10.3% | 83,718 | |||||||||
| Balance sheet total | 198,455 | 168,614 | 17.7% | 163,486 | |||||||||
| Earnings per share, EUR | 0.06 | 0.09 | -38.4% | 0.16 | 0.22 | -28.0% | 0.50 | ||||||
| Earnings per share (diluted), EUR | 0.06 | 0.09 | -38.4% | 0.16 | 0.22 | -28.0% | 0.50 | ||||||
CEO's Review:
"I'm very pleased that, in spite of the challenging market situation, Digia's net sales continued to grow faster than the IT services market during the second quarter. Net sales increased by 3.2 per cent, and also grew organically by 1.3 per cent. Our net sales totalled EUR 53.7 (52.1) million in April-June. International operations accounted for an increased share of net sales, that is, 14.6 (11.9) per cent.
Our operating profit (EBITA) for the period totalled EUR 3.1 (4.2) million, with an EBITA margin of 5.8 (8.1) per cent of net sales. As expected, the result was impacted by EUR 1.1 million in non-recurring items related to the Savangard acquisition and Digia's change negotiations. Without these non-recurring items, operating profit (EBITA) was on par with the comparison period.
During the review period, the service and maintenance business accounted for 49.2 (49.5) per cent and the project business for 50.8 (50.5) per cent of the company's net sales.
In January-June, our net sales grew by 1.7 per cent to EUR 107.5 (105.7) million. Our operating profit (EBITA) totalled EUR 7.7 (9.7) million, with an EBITA margin of 7.1 (9.2) per cent of net sales. International business accounted for 13.1 (12.1) per cent during the first half of the year.
During the second quarter, net sales growth was driven by the Digital Solutions service area, in which net sales increased by 10 per cent on the comparison period. This growth was primarily driven by custom software development, data utilisation solutions and customer relationship management solutions. In the other three service areas, net sales growth was burdened by customers' cautious approach to investments coupled with delays in the launch of previously acquired customer projects.
As expected, our operating profit (EBITA) for the review period was lower than in the previous year due to non-recurring items and the challenging market situation. The impact of the market was reflected in slower-than-expected growth in net sales. Operating profit (EBITA) includes non-recurring costs related to the Savangard acquisition (EUR 0.4 million) and restructuring costs (EUR 0.7 million). Operational adjustments to the Managed Solutions service area constituted the main expense item. With these efficiency measures, the Managed Solutions service area is now seeking annual savings of EUR 2.4 million. Efficiency and renewal measures were also implemented in other business areas during the review period.
In terms of sales, the second quarter was better than the comparison period, with growth of 10.2 per cent in terms of contract value compared to the comparison period. Our customer satisfaction continued to see positive developments during the second quarter, and our Net Promoter Score (NPS) for key customers reached a strong score of 61.
We signed several significant contracts during the review period. For example, the EUR 2 million AI Experimentation Office agreement that we signed with Traficom indicates a high level of confidence in our AI expertise. We also continued our collaboration on a major customer's integration services with a new EUR 3.4 million contract, and our cooperation with HSL was extended with another EUR 4 million contract. We were also successful in public tenders, winning a four-year contract worth EUR 8.5 million in a safety-critical sector. Digia will renew the retail ERP system with modern cloud-based Microsoft Dynamics 365 technology for Musti Group's, the leading Nordic pet care specialist.
Strategy implementation
Sustainable profitable growth lies at the heart of Digia's "Unlock Your Intelligence" strategy. We now have nine consecutive years of profitable growth behind us. This requires continuous renewal.
During the second quarter, we made progress towards our strategy's internationalisation goal. Our objective is to increase the share of Digia's total net sales accounted for by international operations to 15 per cent by the end of 2025. International business accounted for 14.6 (11.9) per cent in the second quarter. The acquisition of Savangard in June will help us to achieve this internationalisation goal. Savangard is a Polish group that was established in 2002, and its acquisition will significantly strengthen our integration and API expertise in Northern Europe. The company also brings a strong customer base in the financial, energy, industrial and public sectors. Our collaboration with Savangard aims to build a Northern European "Integration Powerhouse". Business integration is underway, and we are pleased to announce that we have already signed our first joint contract with a Finnish customer that is worth more than EUR 1 million. Savangard has also signed a contract with the Polish Social Insurance Institution (ZUS) for integration maintenance and support services worth approximately EUR 4 million.
The company's innovative and competitive offering will act as a foundation for sustainable growth. During the review period, we launched our next-generation Digia Business Operations Center - a Finnish service that is now expanding to meet 24/7 business requirements.
We also strengthened our position as a provider of AI solutions. In June, Digia became the first Finnish organisation to secure a Google Agentspace partnership, and the first customer deliveries are already underway. We are also making increasing use of Microsoft's AI solutions in our customer work. We have implemented solutions on platforms such as Microsoft Fabric and Cloud for Healthcare, and have also introduced AI to ERP processes in, for example, Digia's own Envision.
An agent platform has been productised as part of Digia's own open-source-based Digia Dolphin service, and it is already being used in customer deliveries. The most important agreement related to AI solutions was the AI Experimentation Office signed with Traficom.
Digia also continued its partnership with Technology Industries of Finland during the second quarter by organising AI utilisation training for customer organisations as part of the AI 1000 project.
Our recognition as security experts also increased when Traficom approved the addition of both of our Digia Linja solutions to its list of safety-critical products.
Market outlook
In the short term, the market situation will continue to be characterised by cautious and uncertain demand, which may sometimes be reflected as unhealthy competition. Digia's competitive advantage is based on the strength of its offering and the quality and reliability of its operations, while ensuring the efficiency of its own operations. In addition to a high level of customer satisfaction (key customers NPS 61), one of the hallmarks of Digia's quality and reliability comprised the ISO 9001 and ISO 27001 audits that were conducted in May 2025 and which Digia passed without deviations.
Our strategy will ensure that our operational efficiency and expertise evolve to meet future customer needs, and that productising our service offering will introduce AI to our customers' routine business operations. We are also expanding our geographic market area outside Finland in order to create a foundation for future growth. This expansion is being supported by the acquisition of Savangard in June. Digia's profound expertise and innovation will give us a good foundation for future success."
Profit guidance for 2025
Digia's profit guidance for 2025: Digia's net sales will grow (EUR 205.7 million in 2024) and its operating profit (EBITA) will either increase or remain on a par with 2024 (EUR 21.2 million in 2024).
Events after the review period
There have been no major events since the review period.
Briefing invitation
A briefing for analysts will be held at 4:30 pm on Thursday 7 August 2025 as a Teams meeting. Attendance instructions have been emailed to participants.
CEO Timo Levoranta will give a webcast on the results starting at 6:00 pm at https://digia.events.inderes.com/q2-2025/.
The material and presentation for the event will be available from 4:30 pm on 7 August 2025 on the company's website: digia.com/en/investors/reports-and-presentations.
Financial reporting
Digia will publish its business review for January-September 2025 at 3:00 pm on Friday 23 October 2025.
For further information, please contact:
Timo Levoranta, President & CEO
tel. +358 40 500 2050
Distribution
Nasdaq Helsinki
Key Media
digia.com
Digia is a software and service company that combines technological possibilities and human capabilities to build intelligent business, society and a sustainable future. Our mission is to ensure that our customers are at the forefront of digital evolution. There are more than 1,600 of us working at Digia and we operate globally with our customers. Digia's net sales totalled EUR 205.7 million in 2024. The company is listed on Nasdaq Helsinki (DIGIA). digia.com
