Digia's CEO Timo Levoranta
Last updated: 31.10.2019
“Digia’s net sales continued to grow both during the third quarter and the entire review period in line with our objectives. Third-quarter net sales amounted to EUR 29.5 (25.2) million, a year-on-year increase of 17 per cent. Net sales for the review period increased by 16.3 per cent year-on-year to EUR 94.1 (80.9) million. Organic growth amounted to 6.8 per cent during the third quarter and to 8.3 per cent during the review period. Both the service and maintenance business and the project business saw steady growth. The service and maintenance business accounted for 60.6 (59.7) per cent of net sales. The project business accounted for 39.4 (40.3) per cent.
Our operating profit developed favourably during the review period. Operating profit was EUR 1.8 (1.5) million in the third quarter and EUR 6.6 (5.1) million in January-September. The operating margin stood at 6.1 (6.1) per cent of net sales in the third quarter and at 7.1 (6.3) per cent in January-September.
I am especially pleased that all five of our service areas increased their net sales in both the third quarter and the entire review period. I am also satisfied with our growth in both existing and new customerships. This demonstrates the effectiveness of Digia’s overall offering. We do not offer just separate, isolated solutions to our customers – instead, we provide an effective, continuously developed entity in which smart data utilisation is at the heart of business operations. Net sales decreased as expected in the Incomes Register project that we are implementing with the Tax Administration.
Particularly strong growth was seen in business systems, integrations and API, and business analytics during the review period. In business systems, demand for Microsoft ERP systems was notably good. Growth in the analytics business is driven by the increasing need for expertise in knowledge-based management and data warehouses. Companies are modernising their data storage environments by transferring them to the cloud. The benefits of modern cloud-based storage environments include the ability to more easily utilise both structured data and unstructured data such as images, audio and text. As efficient data utilisation and knowledge-based management become increasingly important, new integrations and effective, reliable interfaces are required between systems, which has created demand in all our strong growth areas.
We harness artificial intelligence in our advanced analytics services, for instance. Our customers include Veho, which we have helped utilise artificial intelligence and machine learning in its pricing, and Valvira, whose data warehouse we are developing further. Valio has partnered with Digia to modernise its knowledge-based management platform to a cloud-based solution.
The good trend in our service and maintenance business is driven by our customers’ need to ensure the uninterrupted operation of their digital business platforms. During the review period, we have continued to systematically develop our own monitoring concept for the management of our customers’ business platforms. It replaces numerous manual monitoring measures and provides a continuous operational overview of the performance of business platforms. Some of our customers are already using this concept. During the review period, its use has expanded gradually in new customer environments.
To bolster our position in digital business solutions, in the third quarter we acquired the entire share capital of Accountor Enterprise Solutions Oy (AES), which specialises in Microsoft Dynamics 365 and Oracle NetSuite solutions. As a result of the acquisition, 113 employees transferred to Digia. Integration of AES into Digia’s ERP and CRM business was started up in the third quarter and will be completed by the end of the year.
Skilled and enthusiastic personnel who are committed to the objectives of our customers are the cornerstone of our operations. During the review period, we continued to develop our operating methods to provide our experts with the best possible framework to succeed in their work. For instance, we have bolstered a variety of methods for sharing information, developed job rotation opportunities and management, and provided greater learning opportunities and more coaching for employees. Our culture is built on the concept of continuous learning: we complete our work, but our self-development is never over. During the review period, our personnel count grew by 127 and averaged 1,226.As part of our responsible operations, we organised the Digiarvoa 2019 competition during the review period. The competition sought implementable ideas that generate value by developing wellbeing in our society through digitalisation. The prize was EUR 100,000 worth of Digia’s professional expertise to help implement the project. A total of 93 competition entries were submitted. The winner was announced on 24 September. The winner was the Finnish Red Cross’s “Kukaan ei jää ilman apua” (No one will be left alone) service, which digitally connects volunteers with people who need help. With the competition, we wanted to encourage all Finns to put their heads together to come up with ideas for using technology to facilitate daily life.
We believe in a world in which value is created in ecosystems through smart data management.”
Digia Plc's business review January-September 2019, October 31 2019
President & CEO