Talenom Plc, Stock exchange release, 18 July 2025 at 9:00 EEST
Talenom Plc Half-year Financial Report 2025: The Group's net sales increased and the Easor brand was launched for the Software business
January-June 2025 in brief
- Net sales EUR 70.7 million (68.0), growth 3.9% (6.7)
- Comparable net sales EUR 69.2 (68.0) million, growth 1.7% (6.7)
- EBITDA EUR 20.4 million (19.7), 28.8% (29.0) of net sales
- Comparable EBITDA EUR 19.3 (18.9) million, 27.9% (27,8) of net sales
- Operating profit (EBIT) EUR 8.2 million (8.4), 11.6% (12.3) of net sales
- Comparable EBIT EUR 7.1 (7.5) million, 10.3% (11,0) of net sales
- Net profit EUR 4.8 million (4.7)
- Earnings per share EUR 0.11 (0.10)
April-June 2025 in brief
- Net sales EUR 34.9 million (33.9), growth 3.1% (4.5)
- Comparable net sales EUR 34.9 (33.9) million, growth 3.1% (4.5)
- EBITDA EUR 9.7 million (10.3), 27.8% (30.3) of net sales
- Comparable EBITDA EUR 9.8 (9.7) million, 28.0% (28.5) of net sales
- Operating profit (EBIT) EUR 3.5 million (4.5), 10.1% (13.3) of net sales
- Comparable EBIT EUR 3.6 (3.9) million, 10.3% (11.5) of net sales
- Net profit EUR 2.3 million (2.7)
- Earnings per share EUR 0.05 (0.06)
Reported key figures
| Group | 1-6/2025 | 1-6/2024 | Change, % | 4-6/2025 | 4-6/2024 | Change, % |
| Net sales, EUR 1,000 | 70,655 | 67,971 | 3.9% | 34,937 | 33,876 | 3.1% |
| Net sales, growth % | 3.9% | 6.7% | 3.1% | 4.5% | ||
| EBITDA, EUR 1,000 | 20,379 | 19,741 | 3.2% | 9,710 | 10,253 | -5.3% |
| EBITDA of net sales, % | 28.8% | 29.0% | 27.8% | 30.3% | ||
| Operating profit (EBIT), EUR 1,000 | 8,210 | 8,356 | -1.7% | 3,536 | 4,501 | -21.4% |
| Operating profit (EBIT), as % of net sales | 11.6% | 12.3% | 10.1% | 13.3% | ||
| Return on investment (ROI), % (rolling 12 months) | 7.2% | 6.5% | 12,0% | |||
| Cash flow from operations, EUR 1,000 | 17,462 | 18,157 | -3.8% | |||
| Interest-bearing net liabilities, EUR 1,000 | 92,507 | 83,899 | 10.3% | |||
| Net gearing ratio, % | 167.3% | 160.1% | 4,5% | |||
| Equity ratio, % | 29.5% | 28.7% | 2,8% | |||
| Net investments, EUR 1,000 | 10,420 | 13,125 | -20.6% | 6,007 | 4,767 | 26.0% |
| Liquid assets, EUR 1,000 | 11,802 | 12,314 | -4.2% | 11,802 | 12,314 | -4.2% |
| Earnings per share, EUR | 0.11 | 0.10 | 2.4% | 0.05 | 0.06 | -13.5% |
| Weighted average number of shares during the period | 45,477,972 | 45,467,837 | 0.0% | 45,477,972 | 45,477,972 | 0.0% |
| Net profit, EUR 1,000 | 4,805 | 4,692 | 2.4% | 2,299 | 2,657 | -13.5% |
Comparable key figures
| 1-6/2025 | 1-6/2024 | Change, % | 4-6/2025 | 4-6/2024 | Change, % | |
| Net sales, EUR 1,000 | 69,155 | 67,971 | 1.7% | 34,937 | 33,876 | 3.1% |
| Net sales, growth % | 1.7% | 6.7% | 3.1% | 4.5% | ||
| EBITDA, EUR 1,000 | 19,263 | 18,874 | 2.1% | 9,771 | 9,654 | 1.2% |
| EBITDA of net sales, % | 27.9% | 27.8% | 28.0% | 28.5% | ||
| Operating profit (EBIT), EUR 1,000 | 7,094 | 7,489 | -5.3% | 3,597 | 3,902 | -7.8% |
| Operating profit (EBIT), as % of net sales | 10.3% | 11.0% | 10.3% | 11.5% |
The comparable key figures exclude a one-off increase of EUR 1.5 million in January-June net
sales due to a change in the net sales recognition policy. In January-June, a EUR 0.4 million expense related to additional purchase prices from acquisitions and a EUR 0.9 million income recognition in the comparison period have also been deducted from EBITDA and operating profit.
Guidance for 2025 unchanged
Talenom estimates that 2025 net sales will be around EUR 130-140 million and EBITDA around EUR 36-42 million.
CEO Otto-Pekka Huhtala
The Group's comparable net sales for the second quarter amounted to EUR 34.9 million (33.9), growing by 3.1% (4.5). The net sales of the Accounting business were EUR 29.6 million and net sales of the continuously billed Software business were EUR 5.3 million. Comparable net sales in the first half of the year were EUR 69.2 million (68.0) and growth was 1.7% (6.7). The net sales of the Accounting business were EUR 58.5 million and comparable net sales of the continuously billed Software business were EUR 10.7 million. The Finnish and Spanish businesses saw good organic growth, while Sweden weighed on the Group's overall growth rate.
In Finland, the decline in our customers' transaction volumes appears to have stopped, although business closures and bankruptcies have remained elevated. Thanks to successful new customer acquisition in 2024, net sales in Finland grew by approximately 4.6% (-3.6) in the second quarter, whereas in 2024, net sales still contracted. We estimate that there has been a cautious turn for the better in the volumes and growth of the Finnish business.
Sweden's net sales decreased, especially as a result of customer churn in 2024. In Sweden, efforts to turn net sales growth around have progressed, and this is our main priority in the near future. We saw the trend turning for the better in new sales and customer churn. ONE Talenom operating methods, processes and the introduction of our software are progressing systematically. We estimate that the combined effects of the measures will improve comparable profitability towards the end of the year.
Organic growth in Spain strengthened, and to accelerate growth, we made an acquisition at the beginning of April. In addition to our own active sales efforts, the transition to e-invoicing is the most significant individual legislative requirement to adopt digital solutions, which drives future customer demand. The required software features for the standard confirmed in the spring are on schedule for completion. We also continued to roll out our software to our customers to facilitate their business management and prepare them for the e-invoicing transition.
In the fall of 2024, we announced a strategy update in which we decided to start selling our software to other accounting firms as well. The strategy work has progressed with the separation of business operations at the beginning of the year and the launch of the Software business's own Easor brand. We finalized independent growth strategies for both businesses, in line with the previously communicated long-term financial targets, based on their respective strengths - caring accounting services and easy entrepreneurship with our software. Talenom's Accounting business aims for over 10% annual revenue growth in the long term, and Easor's Software business aims for over 20% annual revenue growth.
The Group's profitability was at a good level. The comparable EBITDA for the second quarter was EUR 9.8 million (9.7) and the comparable operating profit was EUR 3.6 million (3.9). Relative profitability weakened a bit, mainly due to growth investments in Finland. The Accounting business' comparable EBITDA was EUR 6.1 million and the Software business' comparable EBITDA was EUR 3.6 million. The good development in Spain had a positive impact on profitability. Operating profit development was hampered by increased depreciation. The level of investment in own software decreased by approximately EUR 1.2 million in the second quarter compared to the reference period.
The lower investment level is visible as improved cash flow.
Our growth prospects have strengthened as the strategy implementation progresses. We move forward with two solid pillars, software and accounting services, leveraging our expertise in the market's digital transformation.
Webcast
The company's CEO Otto-Pekka Huhtala and CFO Matti Eilonen will present the main points of the review in a live webcast today on 18 July 2025 at 10:00 EEST (in Finnish) and at 12:00 EEST (in English). Recordings of the events will be published on Talenom's website at
https://investors.talenom.com/fi/ and https://investors.talenom.com/en
You can watch the webcast live in Finnish at 10:00 EEST at https://talenom.events.inderes.com/q2-2025
You can watch the webcast live in English at 12:00 EEST at https://talenom.events.inderes.com/q2-2025-eng
The presentation materials will be published before the start of the briefing on the company's website.
Talenom Plc
Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
otto-pekka.huhtala@talenom.fi
Talenom in brief
Talenom is an agile and progressive accounting firm established in 1972. Our business idea is to help entrepreneurs succeed by making their daily lives easier with the market's easiest-to-use digital tools and highly automated personal services. In addition to comprehensive accounting services, we support our customers' business with a wide range of expert services and our partners' services. Our vision is to be the preferred partner in financial management.
Talenom's growth history is strong - average annual net sales growth was approximately 16% between 2005 and 2024. In 2024, Talenom's net sales was some EUR 126 million and the company had 1,554 employees in Finland, Sweden, Spain and Italy at the end of the year. Talenom's share is quoted on the Main Market of Nasdaq Helsinki. Read more: investors.talenom.com/en
