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Viria Plc's business report 1.1. – 31.3.2021

The sharpening of Viria’s strategy continues – divested TV solutions provider Hibox


January–March 2021 in brief

  • Viria Group’s revenue was EUR 25.1 million (2020: EUR 26.2 million), change -4%
  • Adjusted EBITDA was EUR 0.4 million (EUR 1.1 million), or 2% of revenue
  • Adjusted EBITA was EUR -0.1 million (EUR 0.6 million)
  • The adjusted profit for the period was EUR -1.7 million (EUR -2.5 million)
  • Earnings per share were EUR 0.70 (EUR -0.50)
  • Viria sold the TV solutions provider Hibox Systems to Accedo AB
  • Samu Konttinen became Viria Plc’s CEO on 1 January 2021
  • Mikko Mäkelä became Viria Plc’s EVP, Strategy & Business Development and a member of the Management Team on 8 February 2021

Outlook for 2021 (unchanged)

The uncertainty caused by COVID-19 continues in the market and reduces predictability. Viria intends to take measures in 2021 related to the achievement of long-term objectives, and the development expenses associated with these measures will temporarily reduce the company’s operational profitability. It can also be expected that the costs that decreased in 2020 due to the pandemic will return closer to normal levels in 2021.
In 2021, Viria expects the revenue of continuing operations in both the security business and the digital development business to be on a par with the previous year or show moderate growth. The Group’s adjusted EBITDA is estimated to be lower than in 2020.

Key figures


EUR 1,000 1–3/2021 1–3/2020 Change % 1–12/2020
Revenue, EUR 1,000 25,119 26,248 -4% 106,823
   – Security business 16,419 15,995 3% 69,122
   – Digital development business 8,696 10,204 -15% 37,859
   – Other (incl. eliminations) 4 49 -91.8% -158
Revenue, continuing operations1, EUR 1,000 24,236 24,622 -2% 101,026
   – Digital development business1 7,805 8,569 -9% 32,028
   – Other (incl. eliminations)1 12 58 -79.3% -124
EBITDA 6,058 772 685% 5,434
Adjusted EBITDA, EUR 1,0002 401 1,066 -62% 6,160
Adjusted EBITDA, % 2 4 6
EBITA, EUR 1,000 5,565 256 2,078% 3,386
Adjusted EBITA, EUR 1,0002 -91 550 4,113
Operating profit (EBIT), EUR 1,000 3,797 -1,516 -3,838
Adjusted operating profit (EBIT), EUR 1,0002 -1,859 -1,221 -3,111
Profit for the period, EUR 1,000 3,966 -2,711 -4,172
Adjusted profit for the period, EUR 1,0002 -1,720 -2,476 -3,590
Equity-to-assets ratio, % 83.4 81.6   81.3
Earnings per share (EPS), EUR 3 0.7 -0.5 -0.75
Average number of employees (FTE) 710 707 0% 714

1 Revenue from continuing operations does not include Hibox Systems’ revenue for January–February, which amounted to EUR 890 thousand.
2 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.
3 The own shares owned by the Group are excluded from the total number of shares

CEO Samu Konttinen:

Viria’s revenue in the first quarter amounted to EUR 25.1 million (EUR 26.2 million). The most significant reason for the decrease in revenue was the divestment of our subsidiary Hibox Systems to the Swedish company Accedo in February. Revenue from continuing operations came to EUR 24.2 million (EUR 24.6 million) and the adjusted EBITDA of continuing operations was EUR 0.5 million (EUR 0.7 million).
Our strategy is to provide companies and organisations with comprehensive services related to digital development and security. We seek improving profitability and growth in these areas both organically and through acquisitions. Hibox Systems was not a core business for us, which is why its divestment to Accedo sharpens our strategy. I am pleased that we found the right type of industrial buyer for Hibox. We recognised a capital gain of approximately EUR 5.9 million on the transaction.
In the digital development business, revenue performance in the first quarter was weaker than expected.  While the uncertainty caused by COVID-19 has not yet been fully eliminated, we see positive development in both customer projects and recruitment, and we expect stronger performance during the remainder of the year. Our customer satisfaction has remained high and our strong expertise in data analytics and the versatility of our technology expertise provide us with a strong foundation for building profitable growth.
In the security business, the first quarter was in line with our expectations. In cyber security, for example, our CSOC service saw strong growth. While it is still a small part of the big picture, it is an important driver of growth. In corporate network services, the market is transitioning towards software-based solutions. We are developing our offering to correspond to market demand. The changes related to this transition are currently under way and we are also in the process of making our service production more efficient. The sales of our camera surveillance and locking solutions went well during the first quarter and our competitiveness in the delivery of comprehensive security solutions is strong.
Our employees are our most important asset, and we are pleased to have achieved very positive results in job satisfaction surveys in all of our companies. We have several business development projects under way, we operate in attractive industries in which our company is in a good position to achieve success.

Further information
Tiina Nieminen, Director of Communications +358 44 411 3480,
Viria is a digital service and security technology solution provider. We help our customers create growth and profitability through digitalisation while ensuring the security of people and information and the continuity of business. The Viria Group consists of the parent company Viria Plc and its subsidiaries Viria Security Ltd, Aureolis Oy, Bitfactor Oy, Tansec Oy, Spellpoint Ltd and Viria Kiinteistöt Oy. Viria’s revenue in 2020 amounted to EUR 107 million and the Group had 714 employees.