Viria’s revenue in the first quarter increased, outlook for the rest of the year weakened due to the corona pandemic
January–March 2020 in brief
- Viria Group’s revenue was EUR 26.2 million (2019: EUR 24.8 million), change 5.6%
- Adjusted EBITDA was EUR 1.1 million (EUR 1.3 million), or 4.1% of revenue
- Adjusted EBITA was EUR 0.6 million (EUR 0.8 million), or 2.1% of revenue
- The adjusted loss for the period was EUR -2.5 million (EUR -0.6 million)
- Earnings per share were EUR -0.50 (EUR -0.12)
Outlook for 2020
Viria is adjusting the outlook for 2020, which was published in its financial statements release.
Although the corona pandemic has so far had relatively minor effects on Viria’s business operations, Viria estimates that its 2020 revenue and adjusted EBITDA will be lower than in the previous year due to the restrictions imposed and the economic slowdown caused by the pandemic. The company will provide an update on its outlook when the situation normalises so that market developments can be assessed.
The previous guidance, published on 28 February 2020, was:
Viria estimates that demand for digital development and security solutions will remain strong. To boost growth and competitiveness, the company will make significant investments in business development in 2020. Viria expects revenue to grow in the financial period 2020 and the adjusted EBITDA to remain at the same level as in 2019.
|Revenue, EUR 1,000||26,248||24,845||103,104|
|Revenue change, %||5.6||0.8||-1.7|
|EBITDA, EUR 1,000||772||1,269||5,598|
|Adjusted EBITDA, EUR 1,0001||1,066||1,324||5,492|
|EBITA, EUR 1,000||256||739||1,723|
|Adjusted EBITA, EUR 1,0001||550||794||3,315|
|Adjusted EBITA, %1||2.1||3.2||3.2|
|Operating profit (EBIT), EUR 1,000||-1,516||-950||-5,201|
|Adjusted operating profit (EBIT), EUR 1,0001||-1,221||-895||-3,609|
|Profit/loss for the period, EUR 1,000||-2,711||-654||10,859|
|Adjusted profit/loss for the period, EUR 1,0001||-2,476||-610||12,459|
|Balance sheet value, EUR 1,000||148,020||152,659||152,512|
|Equity-to-assets ratio, %||81.6||76.1||78.7|
|Earnings per share, EUR2||-0.5||-0.12||2.04|
|Book value of parent company’s equity per share, EUR2||23||22||23|
|Average number of employees||707||682||693|
1 The adjusted EBITDA, the adjusted EBITA, the adjusted operating profit (EBIT) and the adjusted profit/loss for the period are calculated by excluding capital gains/losses arising from the disposal of properties, fixed asset shares and businesses, insurance and other compensations and other adjustments from the respective reported figure.
2 The own shares owned by the Group are excluded from the total number of shares
CEO Mika Vihervuori:
In the first quarter, Viria increased its revenue by more than five per cent to EUR 26.2 million. Good organic growth continued especially in security business during the first three months. Adjusted EBITDA decreased by EUR 0.3 million year-on-year mainly due to investments made in business development. The financial result for the period is also weakened by the unrealised decrease in the value of investment portfolios.
In March, Viria increased its ownership of Aureolis Oy and now owns all shares of the company. The transaction was implemented through an exchange of shares. Aureolis, a company providing analytics and business intelligence services, has been a part of Viria Group since 2017—first as an associated company and then as a subsidiary from the beginning of 2019.
The corona pandemic has so far had a moderate impact on Viria’s business, which is not yet visible in the financial results for the first quarter. Some customer projects have been postponed or cancelled due to the corona situation, and installation visits, for example, to hospitals and care homes have understandably been limited to essential work only. At the same time, increased remote work in customer companies has increased the need for the provision of safe remote connections with adequate capacity. Information security is increasingly important, as there are always people with dishonest intentions who try to take advantage of the exceptional situation.
The unexpected corona situation has also resulted in new solutions being created to help Viria’s customers. Viria Security productised the nurse call system of its partner 9Solutions, which the hospital staff can set up themselves, for example, in temporary facilities for providing care. Bitfactor has launched Murros and Horisontti concepts, with which it helps companies suffering from the corona situation find new business opportunities.
In the first weeks of the pandemic, Viria focused especially on ensuring the health and safety of its personnel and customers. The majority of Viria employees transferred to remote work in mid-March and working from home has been going exceptionally well considering the circumstances. For work duties that are carried out at customer premises or the company’s own office, we strive to protect our personnel with personal protective equipment and through enhanced hygiene.
It is difficult to forecast the depth and length of the economic downturn that we are facing. However, we feel confident as we look to Viria’s future. The company’s strong capital structure provides us with a steady basis for overcoming difficult times and there is demand for our security and IT services despite economic fluctuations. Digital development has experienced an unprecedented boost during this spring, and Viria’s main mission, promoting digitalisation without compromising security, is now more relevant than ever before.
For further information, please contact
CEO Mika Vihervuori, tel. +358 (0)40 720 2140
Viria is an information and security technology solution provider that promotes digitalisation without compromising security. Our operations combine strong expertise in business intelligence, digital business and physical and cyber security with a customer-oriented and creative approach.
The Viria Group consists of the parent company Viria Plc and its subsidiaries Viria Security Ltd, Aureolis Oy, Bitfactor Oy, Hibox Systems Oy, Tansec Oy and Spellpoint Ltd. All companies are experiencing good growth and have a strong market position. Viria’s revenue in 2019 was EUR 103 million. At the moment, the Group has approximately 700 employees. www.viria.fi/en