Finnish IT-services company Tietoevry appointed Endre Rangnes as its new chief executive and announced a major cost-cutting plan as it reported a second-quarter loss and a drop in revenue.
Revenue from continuing operations for the quarter fell 3% to 463.1 million euros from EUR 478.9 million a year earlier, the company said Tuesday.
The company swung to an operating loss of EUR 66.1 million, compared with a profit of EUR 30.7 million in the same period last year.
The result included a non-cash impairment charge of EUR 80 million related to capitalized development costs for its Banking Platform in Norway, Tietoevry said.
In response to the weak performance, the company is launching a new cost-optimization program aiming for EUR 115 million in run-rate savings by the end of 2026.
"While we can recognize our strengths and achievements, we have not succeeded in delivering adequate financial performance and have suffered from lack of growth over an extended period of time," CEO Endre Rangnes said in a statement.
Mr. Rangnes, who was made permanent CEO on Monday, previously led the company's banking division.
Tietoevry in 2022 began a strategic review to potentially spin off and list the banking unit, a plan that has not yet materialized.
Despite the challenging quarter, the company maintained its full-year outlook for organic growth to be between -2% and +1%.
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