ETTEPLAN Q3 2019 published: Profitable growth accelerated

ETTEPLAN News Release October 31, 2019 

Etteplan’s Interim Report for January – September 2019 has been published. You can find the Report and the related presentation materials at  https://www.etteplan.com/investors/reports-presentations .

Join our webcast today October 1st at 2.30 EET. More information at http://bit.ly/364g5Mq. A recording of the webcast can be found through the same link after the live event. 

President and CEO Juha Näkki:

“In the third quarter we again accelerated our growth and exceeded our revenue growth target of 15 per cent. The acquisitions supported growth and we were also able to grow organically despite the weakening market conditions. The share of Managed Services of revenue exceeded 60 per cent for the first time. In particular, success in project business supported profitability development. A non-recurring item related to the revaluation of the earn-out in Eatech acquisition improved operating profit. Eatech’s business has developed well as part of Etteplan’s software unit Etteplan MORE, but has not reached the demanding target levels.

Demand in Engineering Solutions service area weakened slightly but we were again able to reach good results through strong operative performance. The acquisitions of Devex Mekatronik AB and EMP Engineering Alliance got off to a good start as part of Etteplan and supported the service area’s growth and profitability.

Good demand continued in the Software and Embedded Solutions service area and the business developed positively. The project business, in particular, grew with good profitability. The acquisition of Devex Mekatronic AB supported growth.

Demand in Technical Documentation Solutions service area decreased slightly overall, but the demand for outsourcing solutions remained on a good level. Our business in Germany continued to burden the service area’s development. However, the actions taken are generating good results and we trust that the business in Germany will recover during the rest of 2019. We also continued to develop our service solutions and launched our first fully digital service after the end of the review period. Our HyperSTE-software, designed to improve the quality of written technical English, is now available as a SaaS-solution everywhere in the world. We expect significant growth for our software sales in the years to come.

Uncertainty in the market has led to a decrease in demand growth in Europe, and the trade war has decreased demand in China. However, we see that with the help of our services solutions we will be able to win market share and continue the positive development of our business also going forward.“

Additional information:
Juha Näkki, President and CEO, tel. +358 10 307 2077
Outi Torniainen, SVP, Marketing and Communications, tel. +358 10 307 3302