TietoEnator revises forecasts after merged bank shelves core banking project

TietoEnator revises forecasts after merged bank shelves core banking project

TietoEnator says its second quarter sales will be EUR3m lower then expected after Norwegian bank DnB Nor - created by the recent merger of Den norske Bank (DnB) and Gjensidige Nor - shelved plans to implement a core banking system.

Gjensidige Nor signed the deal with the vendor for the delivery of a new core banking system early last year, prior to its merger with DnB. The new system was to replace incumbent supplier EDB Business Partners.

TietoEnator says the project has now been put on hold "due to changes caused by the merger". This will mean that net sales and operating profit at the vendor's banking and insurance unit will be down EUR3m in Q2 2004. It is still uncertain when and to what extent the remainder of the project, worth EUR14m, will be realised.

As a result, TietoEnator expects its second quarter sales to grow between 7-11% compared with the year ago period. EBITA margin is expected to be between 9-11%.

The merged bank has however signed a three year contract worth EUR7m for TietoEnator's electronic payment processing engine, ProPay. The new deal also includes services relating to payment system integration and consultation.

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