Finnish IT services company Tietoevry reported higher third-quarter revenue and profit, but the results were significantly inflated by a favorable court ruling in its banking division.
Revenue for the quarter rose 4% to 454.2 million euros from 436.3 million euros a year earlier, the company said Thursday.
However, excluding the revenue from the court decision, Tietoevry said its organic growth was negative 1%.
The company's adjusted operating margin jumped to 19.3% from 12.8%, but would have been 15.2% without the one-time gain.
"Our third-quarter performance was healthy with early signs of margin recovery," CEO Endre Rangnes said in a statement.
"Our organic growth totalled 4% and adjusted operating margin 19.3% – this development was largely driven by revenue related to a court ruling in Tietoevry Banking."
The company noted that even without the ruling, underlying profitability improved in all its businesses due to cost-cutting efforts.
Tietoevry is in the midst of a transformation that included the recent sale of its Tech Services business and a cost optimization program targeting 115 million euros in savings by the end of 2026.
The company maintained its full-year outlook, which it updated in September, expecting organic growth to be in the range of negative 2% to 0%.
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