Profitability of Domestic Operations Improved – Further Growth Investments in QT

Digia's net sales in 2014 totalled EUR 97.4 million, with the product business accounting for EUR 39.7 million.

Digia conducts its business through two segments: Domestic and Qt. Digia's Domestic business involves helping its customers to develop services, manage operations and utilise information. International business focuses on the manufacture and sale of software development tools through the Qt business.

Domestic operations

The Domestic segment's net sales fell by 3.5 per cent to EUR 77.0 million in 2014. This net sales decline could be primarily attributed to the fact that the comparison figures for 2013 included a one-off EUR 2.4 million low-margin maintenance deal, concluded in the second quarter, for a third-party software product. Excluding the impact of this deal, net sales from domestic business in 2014 were almost on a par with the previous year.

The Domestic segment accounted for 79 per cent of Digia's net sales. The segment's operating profit rose by 17.0 per cent from the previous year, with operating profit before extraordinary items totalling EUR 6.3 million. Similarly, profitability developed favourably.

The Utilizing Information services area showed very positive development. Demand for ERP systems was also healthy. Demand for Digia's own software products and financial sector services in Finland was particularly good.

Qt

The Qt segment's net sales were up by 2.6 per cent to EUR 20.4 million. Qt represented 21 per cent of Digia's consolidated net sales. As expected, the Qt business recorded a loss for the review period. This could be attributed to the company's determined and strong investments in business development to enable future growth.

The Qt user ecosystem is showing powerful growth. The new version, Qt 5.3, launched in May 2014 has been downloaded more than a million times. Feedback from users has been extremely positive.

Read more about Digia's financial performance in the Board of Directors' report.