Profitability and financial result

Digia’s consolidated operating profit (EBIT) before extraordinary items for the fiscal year was EUR 8.1 (17.2) million and profitability (EBIT %) was 6.6 (13.1) per cent. Digia’s consolidated operating profit after extraordinary items was EUR -22.2 (17.2) million and profitability (EBIT %) was -18.2 (13.1) per cent. The extraordinary non-recurrent items for 2011 comprised a EUR 25.4 million goodwill writedown and a EUR 4.9 million restructuring provision related to the closure of sites and to personnel negotiations. The reduction was mainly due to the negative development in net sales of Mobile Solutions.

The Enterprise Solutions segment’s operating profit before extraordinary items was EUR 8.4 (11.0) million, down 24.0 per cent. Operating profit after extraordinary items was EUR 7.9 million. The decrease in the Enterprise Solutions segment’s net sales was caused by lower-than-expected Finnish licence sales, combined with higher operating expenses. During the period, the cost structure was particularly burdened by personnel turnover. Recruitment, subcontracting and training expenses related to resolving resource shortages in certain competence areas, and the launch expenses for the Qt business, were also major costs.

The Mobile Solutions segment’s operating profit before extraordinary items was EUR -0.3 (6.2) million, and after extraordinary items, EUR -30.1 million. Lower profitability in the Mobile Solutions segment was due to a sudden, major and unpredicted change in the operating environment at the beginning of the review period. As a consequence of this change, throughout the period the segment had excess personnel in proportion to the continuously falling demand for its services. The cost of keeping employees without work caused a financial strain.

The Group’s net financial expenses for 2011 totalled EUR 1.0 (1.4) million. Consolidated earnings before tax for the year totalled EUR -23.1 (15.7) million, and net profit was EUR -22.5 (11.5) million.

Consolidated earnings per share were EUR 0.32 (0.56) before extraordinary items, and EUR -1.08 after extraordinary items. Other per-share key figures are presented in Note 30 to the financial statements.