Tieto has seen its bottom line tumble double-digits as the Nordic IT services heavyweight underwent major changes to its operating model in Q2.
Q2 FY2019 EBIT fell by 42 per cent year on year to €18.1m.
Sales were flat at €403.2m.
However, despite disappointing investors, CEO Kimmo Alkio said that he welcomed the firm's transformative quarter.
"We began the implementation of our new strategy by changing the operating model - aiming to reposition us to be in the forefront of digital renewal for our customers," he said.
"We also announced the planned merger with EVRY - the most significant event in our company's history. The merger announcement has created a great deal of interest among all our stakeholders."
The Finland-based outfit said it has now completed its "major operations changes" during Q2.
The firm said they included investing in making its digital experience services more efficient and more aligned to their customers.
It also added investment to its core focus areas: industry software, hybrid infrastructure and product development services.
A member of CPI's European Elite, Tieto is a software, cloud and services powerhouse with €2.9bn in revenues and a headcount of 24,000.
Tieto's €1.5bn mega-merger with fellow Nordic IT services firm EVRY was announced last month.
At the time, Tieto indicated that it planned to make €75m in annual cost savings as a result.
"This quarter was unique in many ways and developmentally it did not meet our long-term ambition," Alkio added:
However, the firm insists it has not changed its full-year 2019 forecast.
Tieto still expects its full-year EBIT to increase from the previous year's level of €168m.
"Tieto has completed the work of changing its operating model, which is expected to contribute around €15m to Tieto's results in the second half of the year," Alkio said.
Some say performance, others say money but it may be systems and processes that carry the day
Dell and Dell EMC president roles merged
Chris Gabriel from Logicalis on how the board's role will change in 2020
IT services and integration firm's US arm announces new boss three months after last board restructure