Tietoevry up on higher dividend, progress in banking de-merger

Tieto Oyj

15/02/2024 10:48

** Shares in Tietoevry  TIETO.HE  jump more than 3% after
the Finnish IT services provider proposed higher dividend and
said the de-merger plan of its banking business was progressing
    ** Tietoevry proposes a dividend of 1.47 euros per share for
2023, 1.4% higher than the 1.45 euros a year earlier
    ** In a separate statement, the company says the separation
process of the banking business continues, with the aim of
completing the de-merger on June 30
    ** DNB Bank analyst Christoffer Wang Bjornsen says the
dividend is higher than consensus expected, which could be an
indication management expects to cash flow to improve, or for
Tech Services/Banking units to be sold at a decent price
    ** He adds the share reaction is also due to the management
saying there is interest from buyers for both businesses
    ** OP Markets analyst Kimmo Stenvall says the banking
de-merger progressing should add value as a separate company
    ** Stenvall adds Q4 report and 2024 outlook were "a little
bit soft, but only marginally", and notes the "good" dividend
yield of 6.9%
    ** The stock is the top performer on the Helsinki blue-chip
index  .OMXH25 

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))