Netum Group Plc | Company announcement | 29 April 2025 at 8.00 a.m. EEST
Netum Group Plc's business review 1 January-31 March 2025: Revenue for January-March 2025 decreased 2.2%, EBITA 9.8% of revenue
This release is a summary of Netum's business review for January-March 2025. The complete report is attached to this release as a pdf file and available on the company's website at https://www.netum.fi/en/investors/reports-and-presentations/.
Unless otherwise stated, the figures in parenthesis refer to the comparison period and are in the same unit as the figures for the review period. The figures for 2025 contained in this business review are unaudited.
January-March 2025 in brief
- Revenue decreased 2.2% on the comparison period and was EUR 11.2 (11.4) million
- EBITDA amounted to EUR 1.1 (1.5) million or 9.9 (12.7) % of revenue
- EBITA was EUR 1.1 (1.4) million or 9.8 (12.4) % of revenue
- Comparable EBITA was EUR 1.1 (1.4) million or 9.8 (12.2) % of revenue
- Operating profit was EUR 0.3 (0.6) million or 2.4 (5.3) % of revenue
- Result for the period was EUR -0.1 (0.1) million or -0.6 (1.0) % of revenue
Group key figures
| EUR thousand unless otherwise stated | 1-3/2025 | 1-3/2024 | Change | 1-12/2024 |
| Revenue | 11,175 | 11,429 | -2.2% | 43,953 |
| Revenue growth, per cent | -2.2% | 35.4% | 18.6% | |
| Organic growth, per cent | -2.2% | 7.1% | 2.8% | |
| EBITDA | 1,104 | 1,453 | -24.0% | 4,607 |
| EBITDA, % of revenue | 9.9% | 12.7% | 10.5% | |
| Operating profit excluding goodwill amortisation (EBITA) | 1,090 | 1,423 | -23.4% | 4,477 |
| EBITA, % of revenue | 9.8% | 12.4% | 10.2% | |
| Comparable EBITA1) | 1,090 | 1,390 | -21.6% | 4,560 |
| Comparable EBITA, % of revenue | 9.8% | 12.2% | 10.4% | |
| Operating profit (-loss) | 265 | 609 | -56.4% | 1,137 |
| Operating profit (-loss), % of revenue | 2.4% | 5.3% | 2.6% | |
| Result for the reporting period | -63 | 113 | -155.9% | -456 |
| Result for the reporting period, % of revenue | -0.6% | 1.0% | -1.0% | |
| Number of employees, at the end of the period | 387 | 393 | -1.5% | 394 |
| Overall capacity, own personnel (FTE), at the end of the period | 372 | N/A 2) | 379 |
1) Items affecting comparability are presented in the table Comparable EBITA.
2) Overall capacity, own personnel (FTE), has been reported for the first time in connection with the Financial Statements Release 2024. The value of the comparison period is not available.
Outlook for 2025 unchanged
Netum estimates its revenue in the financial year 2025 to be in the range of EUR 41-46 million and comparable EBITA to be 7-10% of revenue.
Netum expects the demand for IT services in the public sector to improve towards the end of the year, but intensified price competition to increase the challenge for the market. Global unprecedented uncertainty and unilateral decisions made by the major world powers create slowness and ambiguity in decision-making in the private sector. We believe that as the year progresses, adaptation to the new world situation will increase and the market will continue to grow.
Repe Harmanen, CEO:
"The year 2025 started in line with our expectations without any major surprises. Our revenue decreased 2.2% on the comparison period, which was mainly due to the high project volume at the beginning of 2024. The result was in line with our forecasts, but the low mood of the IT market continued to be reflected in our operations. Despite this, our profitability remained at a good level.
Revenue for the first quarter was EUR 11.2 (11.4) million and comparable EBITA EUR 1.1 (1.4) million, or 9.8% (12.2%) of revenue. We are relatively satisfied with the profitability level, but at the same time we will continue our determined work to accelerate the growth of our business. In the current market situation, achieving profitable growth requires increased focus, clear priorities and efficient actions. We see that the market's low mood will continue at least until the end of the first half of the year, and we expect new projects to be launched in the second half of the year.
Competition is still very tough - especially in public service projects. It is also important for us to act responsibly in competitive tenders. We only offer solutions that we truly believe will bring value and benefit to the customer. We emphasise transparency: At the tendering stage, we help the customer understand the total cost of the project and the expected quality in order to avoid any unpleasant surprises during the project.
Public service IT projects are currently active, and we expect good growth potential in the number of projects in the second half of the year. On the other hand, the situation in the private sector is clearly more uncertain. Geopolitical tensions and the unpredictability of global political leaders are reducing investment willingness. Growing uncertainty regarding the outlook for global economic growth is hampering the decision-making of both companies and consumers. Ensuring profitability in this environment requires even more work, persistence and patience from us. Our focus is on profitable growth in the second half of the year in particular.
During the review period, we have continued to promote our strategically important AI project. We help our customers use artificial intelligence in a controlled and responsible way. Our goal is to build a smarter and more sustainable future, without forgetting people. We see significant opportunities in this area for both our customers as well as ourselves to strengthen our competitive advantage. In particular, the high-level competence of our experts and their ability to understand large entities make us stand out in our favour. This expertise is key to the successful implementation of AI solutions.
Our sustainability programme is progressing according to plan. One example of this is the national Facility Security Clearance (FSC) certificate, which the competent authority granted to Netum Ltd in February. The national Facility Security Clearance is an indication of Netum's high level of security and that Netum is a trusted partner for storing and handling classified information by government authorities. The preparation of our CSRD project is also progressing at a good pace. Next spring, we will publish our first sustainability report in line with the CSRD directive. For us, sustainability is not just about reporting - it is part of our day-to-day operations and decision-making. That's why we also want to communicate it openly and transparently through reporting.
As CEO, I have now completed my first quarter. I have been able to meet many of our customers, and every meeting has been educational and inspiring. These encounters have provided us with insights and perspectives that we can draw on in building Netum's future. I am grateful for the trust placed in me and the significant projects we are able to implement for our customers.
Finally, I would like to express my warmest thanks to our customers, employees and all our stakeholders. Through cooperation and a common direction, we build sustainable growth and future success - together."
For further information, please contact:
Netum Group Plc
Repe Harmanen, CEO
+358 400 467 717
repe.harmanen@netum.fi
Mari Ala-Sorvari, Head of External Reporting and Investor Relations
+358 50 494 9930
mari.ala-sorvari@netum.fi
Certified Adviser:
Evli Plc
+358 40 579 6210
Netum Group Plc
Netum is a strongly and profitably growing IT service partner that builds a functional and secure digital society. We help our customers develop their digital business by designing and implementing sustainable digital solutions tailored to their needs - wisely and responsibly. Netum employs approximately 400 people, and the company's revenue in 2024 was EUR 44 million. Netum Group Plc's shares are listed on Nasdaq Helsinki First North (NETUM). www.netum.fi
