Enento Group Plc | Stock Exchange Release | July 15, 2025 at 12:00:00 EEST
SUMMARY
April - June 2025 in brief
- Net sales amounted to EUR 38,6 million (EUR 38,5 million), an increase of 0,5% (at comparable exchange rates decrease of 1,7%).
- Adjusted EBITDA was EUR 13,0 million (EUR 14,1 million), a decrease of 7,8% (at comparable exchange rates decrease of 9,4%).
- Adjusted EBITDA margin was 33,7% (36,7%), a decrease of 3,0 pp (at comparable exchange rates decrease of 2,9 pp).
- Adjusted EBIT was EUR 10,2 million (EUR 10,9 million), a decrease of 6,5% (at comparable exchange rates decrease of 7,9%).
- Operating profit (EBIT) was EUR 5,0 million (EUR 7,8 million).
January - June 2025 in brief
- Net sales amounted to EUR 76,3 million (EUR 75,7 million), an increase of 0,8% (at comparable exchange rates decrease of 0,4%).
- Adjusted EBITDA was EUR 25,5 million (EUR 26,5 million), a decrease of 4,0% (at comparable exchange rates decrease of 4,9%).
- Adjusted EBITDA margin was 33,4% (35,0%), a decrease of 1,7 pp (at comparable exchange rates decrease of 1,6 pp).
- Adjusted EBIT was EUR 19,7 million (EUR 20,3 million), a decrease of 3,0% (at comparable exchange rates decrease of 3,8%).
- Operating profit (EBIT) was EUR 10,2 million (EUR 13,0 million).
In April - June 2025, the items affecting comparability amounted to EUR -3,2 million (-1,0 EUR million) and in January - June 2025, the items affecting comparability amounted to EUR -5,5 million (-3,0 EUR million), including mainly IT infrastructure consolidation related costs.
In April - June 2025, the amortization from fair value adjustments amounted to EUR -2,0 million (EUR -2,1 million) and in January - June 2025 to EUR -4,0 million (EUR -4,2 million).
KEY FIGURES
| 1.4. - | 1.4. - | 1.1. - | 1.1. - | 1.1. - | |
| EUR million | 30.6.2025 | 30.6.2024 | 30.6.2025 | 30.6.2024 | 31.12.2024 |
| Net sales | 38,6 | 38,5 | 76,3 | 75,7 | 150,4 |
| Net sales change, % (comparable fx rates) | -1,7 | -2,9 | -0,4 | -4,6 | -3,6 |
| Net sales change, % (reported fx rates) | 0,5 | -3,0 | 0,8 | -4,9 | -3,5 |
| Operating profit (EBIT) | 5,0 | 7,8 | 10,2 | 13,0 | 24,6 |
| EBIT margin, % | 13,0 | 20,4 | 13,3 | 17,2 | 16,3 |
| Adjusted EBITDA | 13,0 | 14,1 | 25,5 | 26,5 | 52,0 |
| Adjusted EBITDA margin, % | 33,7 | 36,7 | 33,4 | 35,0 | 34,6 |
| Adjusted operating profit (EBIT) | 10,2 | 10,9 | 19,7 | 20,3 | 39,6 |
| Adjusted EBIT margin, % | 26,4 | 28,4 | 25,8 | 26,8 | 26,4 |
| New services of net sales, % | 9,3 | 15,3 | 10,2 | 14,7 | 15,6 |
| Free cash flow | 6,6 | 6,1 | 13,6 | 12,9 | 30,7 |
| Net debt to adjusted EBITDA, x | 2,9 | 2,6 | 2,9 | 2,6 | 2,7 |
| Earnings per share, EUR | 0,13 | 0,19 | 0,22 | 0,31 | 0,51 |
| Adjusted earnings per share, EUR1 | 0,30 | 0,29 | 0,54 | 0,56 | 1,09 |
1 Previously reported Comparable earnings per share has been restated and renamed to Adjusted earnings per share by excluding in addition to fair value adjustments related to acquisitions also items affecting comparability and reduction in value of associated company as well as their tax impact. The restated quarterly information is disclosed in Note 1 Alternative performance measures.
FUTURE OUTLOOK AND GUIDANCE (UNCHANGED FROM 14 FEBRUARY 2025)
There are signs of a gradually improving macroeconomic situation and stabilization in the demand for mortgage and unsecured loans, and the demand for business information services remains good. However, the Swedish consumer credit market is facing structural changes and new regulatory developments. These are expected to impact Enento's operating environment and financial performance in 2025. Enento remains focused on maintaining profitability and strengthening free cash flow through disciplined cost control, while simultaneously investing in future competitiveness and growth opportunities.
Enento Group expects that 2025 net sales will be around EUR 150-156 million and Adjusted EBITDA will be around EUR 50-55 million.
The guidance assumes that exchange rates remain at the current level.
ELINA STRÅHLMAN, INTERIM CEO
Economic activity and our operating environment remained muted during the second quarter. Our net sales at comparable exchange rates declined in the second quarter of 2025 due to the dampened development in Consumer Insight while Business Insight remained stable. Net sales for the second quarter were EUR 38,6 million (EUR 38,5 million), representing a decrease of -1,7% at comparable exchange rates. We continued to see very good sales growth in Norway and Denmark, while sales declined in Sweden and Finland mainly due to consumer credit information. At the same time, we have demonstrated incremental progress in many areas in terms of the commercialization of new services in Business Insight and Consumer Insight.
Our Adjusted EBITDA declined from the previous year and reached EUR 13,0 million (EUR 14,1 million) but improved quarter over quarter. This resulted in an Adjusted EBITDA margin of 33,7% (36,7%). Our profitability was supported by efficiency actions and savings, while the decline in sales and less favorable sales mix, cost inflation especially related to data costs, investments in new sales and lower production for own use due to the IT infrastructure consolidation continued to pressure our profitability. The IT infrastructure server migrations have now been successfully completed in both Finland and Sweden. However, the on-going optimization work continues to affect our new services' development speed and capacity in the third quarter. Our free cash flow continued to be good at EUR 6,6 million (EUR 6,1 million), which resulted in significantly improved cash conversion of 66,4% (46,2%).
Business Insight had a stable quarter where net sales grew by +0,1% at comparable exchange rates. Sales were impacted by one less working day, challenging operating environment affecting SME sales and one-off sales in the comparison period. Growth continued to be good in both compliance and real estate information, where customers are interested in our new services. In Sweden, we have now launched the innovative beneficial ownership and company sanction screening services, which are important spearheads to gain a stronger position in the Swedish business information market. In Finland, we launched a property ESG API, which has received promising demand from our banking customers. Swedish premium business transformation is also progressing. While we are still in the early stages of this transformation and face short-term revenue risks, the medium- and long-term impact is expected to be positive, driven by increased recurring revenue, sales efficiency and improved customer experience.
Consumer Insight net sales declined by -4,3% at comparable exchange rates. We saw more stable consumer credit information volumes in Finland, whereas volumes in Sweden were still pressured by the weak loan broker segment and declined consumer confidence. We have seen stabilization in the Swedish volumes over the past months, but the outlook continues to be muted due to uncertain macroeconomic and regulatory developments. In May, the Swedish parliament voted in favor of the proposed bank license requirement for loan brokers and credit institutions, and the scope of changes was as we expected. The legislation enters into force on 1 July 2025, and it will be fully implemented in July 2026. Uncertainty around the regulation has already affected customer acquisition activities and volumes of the Swedish loan brokers. On a positive note, we continued to see good traction in new customer verticals in Sweden. Customers' interest in our new fraud prevention and real-time data (PSD2) solutions has also remained good, but sales cycles remain long, and we continue to focus on commercial actions. Our new advanced credit rating service Rating Odin in Finland, which was launched in the first quarter, has now also gained its first orders and we have more customers in the sales pipeline.
Our current strategy remains valid, and we are fully committed to delivering sustainable, profitable growth and maximizing shareholder value. We are confident that we can deliver 5-10% annual sales growth and reach an Adjusted EBITDA margin of around 40%, but this will take longer than previously anticipated due to the challenging operating environment. As a result, we have made the decision to maintain our long-term financial targets, but without a defined period for the achievement of these targets. Our dividend policy remains unchanged, and we aim to continue having an attractive capital allocation for our shareholders.
Looking ahead to the latter part of 2025, we continue to navigate in an uncertain market environment in Finland and Sweden. The second quarter was challenging, but our outlook and guidance remains valid for the full year 2025. In Business Insight, we see more solid demand in Finland, Norway and Denmark, whereas Sweden continues to be impacted short-term by the premium transformation related to SME customers. In Consumer Insight, we continue to face more muted albeit stabilizing consumer credit information volumes. Despite the short-term uncertainty, there are many growth drivers, and we continue to execute our strategy to drive profitable growth. We see many growth opportunities in services such as compliance, fraud prevention and real-time data (PSD2), and through capturing higher market penetration. At the same time, we remain focused on maintaining profitability and strengthening free cash flow through disciplined cost control actions, while simultaneously investing in future competitiveness and growth opportunities in line with our strategy.
WEBCAST
Webcast for analysts, investors and media will be arranged on 15 July 2025, starting at 2.30 p.m. (EEST). Interim CEO Elina Stråhlman will present the results in English.
The webcast can be followed at: https://enento.events.inderes.com/q2-2025.
The presentation material and the webcast recording will be available on Enento's investor website.
Helsinki, 15 July 2025
ENENTO GROUP PLC
Board of Directors
For further information:
Elina Stråhlman
Interim CEO
Tel. +358 10?270 7578
Distribution:
Nasdaq Helsinki Ltd
Major media
enento.com/investors
Enento Group Plc
Enento Group is a Nordic knowledge company powering society with intelligence since 1905. We collect and transform data into intelligence and knowledge used in interactions between people, businesses, and societies. Our digital services, data and information empower companies and consumers in their daily digital decision processes, as well as financial processes and sales and marketing processes. Approximately 380 people are working for Enento Group in Finland, Norway, Sweden, and Denmark. The Group's net sales for 2024 was 150,4 MEUR. Enento Group is listed on Nasdaq Helsinki with the trading code ENENTO.
