Finnish IT services company Tieto Corporation has reported a first quarter net profit up 48% at 16.3m euros ($17.2m) on revenue that rose 24% to 141.5m euros ($150.2m). At the pre-tax level profit was up 66% at 25.4m euros ($26.9m). Earnings per share rose 48% to 0.31 euros ($0.33).
For the entire year, Tieto said the increase in networked services, along with the adoption of the common euro policy and the year 2000 changes, will keep demand strong. It predicted an increase in revenue of at least 20% for 1999 as a whole.
In March the company announced its intention of merging with Swedish IT services outfit Enator AB (CI No 3,616), which announced its first quarter results at the same time. Enator reported a profit after net financial items down 16.4% at SKr66m ($7.85m) on revenue that rose 5% to SKr1.33bn ($159m).
Enator CEO Ake Plyhm said that, while the company’s system solutions for the public sector, together with its services and support activities, had a strong quarter, system solutions for the private sector and its defense sector business had a weak start to the year. He added that measures taken to improve profitability are expected to have a gradual impact during the year and the downturn during the period is not considered representative of Enator’s performance during the year.
