Viria Oyj’s half-year financial report 1 January–30 June 2020: Operational profitability improved in challenging times

April-june 2020 in brief

  • In Q2, revenue was EUR 26.0 million, (2019: EUR 26.7 million), change -2,7%
  • Adjusted EBITDA was EUR 1.4 million (EUR 0.9 million), or 5.2% of revenue
  • Adjusted EBITA was EUR 0.8 million (EUR 0.3 million), or 3.2% of revenue
  • The adjusted loss for the period was EUR -0.3 million (EUR 0.5 million)
  • Earnings per share were EUR -0.05 (EUR 0,09)

January-june 2020 in brief

  • Viria Group’s revenue was EUR 52.2 million (EUR 51.6 million), change +1,3%
  • Adjusted EBITDA was EUR 2.4 million (EUR 2.2 million), or 4.6% of revenue
  • Adjusted EBITA was EUR 1.4 million (EUR 1.1 million), or 2.7% of revenue
  • The adjusted loss for the period was EUR -2.8 million (EUR -0.4 million)
  • Earnings per share were EUR -0.54 (EUR -0,03)

Medium-term financial targets

In the next few years, Viria seeks growth. The company’s view is that this growth will be driven especially by the strong digitalisation development in society and the increasing need for cyber security services. In its strategy, Viria emphasises the growth of revenue and also expects revenue growth to contribute to the increase of the adjusted EBITDA in the medium term.

Outlook for 2020

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.

Key figures

4-6/2020 4-6/2019 1-6/2020 1-6/2019 1-12/2019
Revenue, EUR 1,000 25,988 26,726 52,236 51,571 103,104
Revenue, change, % -2.8 -5.8 1.3 -2.7 -1.7
EBITDA 1,427 1,184 2,199 2,453 5,598
Adjusted EBITDA, EUR 1,0001 1,359 880 2,425 2,204 5,492
EBITA, EUR 1,000 909 638 1,164 1,377 1,723
EBITA, % 3.5 2.4 2.2 2.7
Adjusted EBITA, EUR 1,0001 841 334 1,391 1,129 3,315
Adjusted EBITA, %1 3.2 1.2 2.7 2.2 3.2
Operating profit (EBIT), EUR 1,000 -929 -1,106 -2,445 -2,057 -5,201
Adjusted operating profit (EBIT), EUR 1,0001 -997 -1,410 -2,218 -2,306 -3,609
Profit for the period, EUR 1,000 -269 491 -2,980 -162 10,859
Adjusted profit for the period, EUR 1,0001 -323 235 -2,799 -374 12,459
Balance sheet, EUR 1,000     145,735 141,195 152,512
Equity-to-assets ratio, %     77.3 75.7 78.7
Earnings per share (EPS), EUR2 -0.05 0.09 -0.54 -0.03 2.04
Book value of parent company’s equity per share, EUR2     22 21 23
Average number of employees (FTE) 717 698 711 688 693

1 The adjusted EBITDA, the adjusted EBITA, the adjusted operating profit (EBIT) and the adjusted profit 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:

The exceptional spring was better than predicted for Viria in April, both operationally and numerically. Our employees, who have demonstrated an excellent ability to adapt and innovate daily amidst this new and uncertain situation, are to thank for that.
The Group’s revenue for January–June increased by 1.3 per cent year-on-year to EUR 52.2 million. Underlying the growth was particularly the good first quarter in security business. Revenue growth slowed down during the second quarter due to the COVID-19 pandemic and resulting restriction measures with individual customer projects postponed and only absolutely necessary installation visits made to hospitals and care homes, for example. Thanks to active sales efforts, however, the demand for our services and our order backlog continuously remained at a good level. Cash flow was partially maintained by continuous services, which account for approximately a quarter of the revenue of the business functions on average.
Adjusted EBITDA improved by 10 per cent year-on-year. This was due to cost-savings in travel due to COVID-19, among others.
Operating profit was burdened by the amortisation of consolidated goodwill from the acquisitions made in recent years, in addition to which the result for the period under review was burdened by the unrealised impairment of investment portfolios.
The COVID-19 pandemic and increase in remote work have strongly promoted the use of digital services, and conventional industries have also become interested in digitalisation. At Viria, this has also been reflected as continued demand for service and business design. After all, the digitalisation of operations is not only about technology, but also about the development of operating models and processes to make the use of the services as smooth and streamlined as possible.
This exceptional time also proved how the services with which Viria works are essential and important to people. New points of view are affixed to security, and the more business takes place online, the more important the digital security of people and businesses as well as the availability and user experience of services become. There are growing needs and expectations for the security and IT services we provide in modern society. Therefore, in spite of the prevailing uncertainty, we have positive expectations of the future.

Events after the review period

On 7 July 2020, Viria Plc paid a dividend of EUR 1.41 per share on the result for 2019, totalling EUR 7.9 million.
In accordance with the resolution of the Annual General Meeting, a share issue for the members of the Board of Directors of Viria Plc took place as part of the Board of Directors’ share-based incentive scheme. A total of 960 shares were subscribed at a price of EUR 15.62 per share in the share issue.
Viria Plc
Board of Directors


Viria Plc Half-year report 2020

Further information

CEO Mika Vihervuori, tel. +358 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.