Profit Performance and Profitability

Profit and Profitability

Digia’s operating profit in January–December 2016 totalled EUR 5.4 (5.9) million, or 6.3 (7.2) per cent of net sales. The fall in our operating profit stemmed from challenging delivery projects and the end of a long-term maintenance customer relationship in Financial Solutions and Services in Sweden. Investments in recruitment and sales also impacted profitability.

The profitability of the Integration and Information Management service area remained at a good level in the January–December period of 2016 thanks to changes in net sales structure.

Profitability in the Industry Solutions service area was good and improved on the previous year. In particular, improved profitability was seen in the ERP business based on Microsoft technologies. Although the profitability of site optimisation also improved, investments in this business continued to burden its earnings. During January–December 2016, profitability developed favourably especially thanks to good trends in both the customised solutions service business and the ERP business based on the company's own technologies.

In January–December 2016, the profitability of Digia Financial Solutions and Services fell on the previous year. Profitability was weakened by warranty work related to projects involving the delivery of Digia’s own products, the ending of a significant long-term maintenance customer relationship in Sweden, and planned investments in the service business.

Full-year earnings before taxes were EUR 5.1 (5.3) million, with earnings after taxes totalling EUR 4.1 (4.2) million.

Full-year earnings per share were EUR 0.20 (0.20) for continuing operations and EUR 3.63 for discontinued operations.

Net financial expenses were EUR 0.3 (0.5) million in January–December 2016.