Enento Group’s Interim Report 1.1. – 30.9.2021: Quarter with moderate growth after Covid-19 spurt
29 October 2021 - 8:00PM
Enento Group’s Interim Report 1.1. – 30.9.2021: Quarter with
moderate growth after Covid-19 spurt
ENENTO GROUP PLC, STOCK EXCHANGE RELEASE 29 OCTOBER 2021 AT
12.00 EEST
Enento Group’s
Interim Report 1.1. –
30.9.2021:
Quarter with moderate growth after Covid-19
spurt
SUMMARY
July -
September 2021 in
brief
- Net sales amounted
to EUR 38,6 million (EUR 36,7 million), an increase of 5,2 % (at
comparable exchange rates an increase of 4,0%).
- Adjusted EBITDA
excluding items affecting comparability was EUR 14,5 million (EUR
14,8 million), a decrease of 2,2 % (at comparable exchange rates an
decrease of 3,1 %).
- Adjusted EBIT
excluding items affecting comparability and amortisation from fair
value adjustments related to acquisitions was EUR 11,9 million (EUR
12,4 million), a decrease of 3,6 %.
- Operating profit
(EBIT) was EUR 8,9 million (EUR 9,2 million). Operating profit
included items affecting comparability of EUR 3,0 million (EUR 3,2
million), mainly arising from amortisation from fair value
adjustments of EUR 3,1 million (EUR 3,1 million) related to
acquisitions as well as M&A related expense adjustment.
- New services
represented 7,6 % (6,3 %) of net sales.
- Free cash flow
amounted to EUR 9,9 million (EUR 11,0 million). The effect of items
affecting comparability on free cash flow was EUR -0,0 million (EUR
-0,6 million).
- Earnings per share
was EUR 0,27 (EUR 0,28).
- Comparable earnings
per share were EUR 0,37 (EUR 0,38)1.
January –
September 2021 in
brief
- Net sales amounted
to EUR 120,4 million (EUR 111,1 million), an increase of 8,4 % (at
comparable exchange rates an increase of 5,9 %).
- Adjusted EBITDA
excluding items affecting comparability was EUR 44,5 million (EUR
39,7 million), an increase of 12,2 % (at comparable exchange rates
an increase of 10,2 %).
- Adjusted EBIT
excluding items affecting comparability and amortisation from fair
value adjustments related to acquisitions was EUR 36,9 million (EUR
33,0 million), an increase of 11,8 %.
- Operating profit
(EBIT) was EUR 27,5 million (EUR 21,7 million). Operating profit
included items affecting comparability of EUR 9,4 million (EUR 11,3
million), mainly arising from amortisation from fair value
adjustments of EUR 9,5 million (EUR 9,1 million) related to
acquisitions as well as M&A related expenses, reversal of
excess redundancy provisions and received insurance
compensation.
- New services
represented 7,3 % (5,2 %) of net sales.
- Free cash flow
amounted to EUR 19,8 million (EUR 23,5 million). The effect of
items affecting comparability on free cash flow was EUR -0,3
million (EUR -2,0 million).
- Earnings per share
was EUR 0,85 (EUR 0,66).
- Comparable earnings
per share were EUR 1,17 (EUR 0,96)1.
1 The comparable earnings per share does not
contain amortisation from fair value adjustments related to
acquisitions or their tax impact.
KEY FIGURES
EUR million |
1.7. –30.9.2021 |
1.7. –30.9.2020 |
1.1. – 30.9.2021 |
1.1. – 30.9.2020 |
1.1. –31.12.2020 |
|
|
|
|
|
|
Net sales |
38,6 |
36,7 |
120,4 |
111,1 |
151,3 |
Net sales
growth, % |
5,2 |
0,1 |
8,4 |
4,1 |
3,7 |
Operating
profit (EBIT) |
8,9 |
9,2 |
27,5 |
21,7 |
27,8 |
EBIT margin,
% |
23,0 |
25,1 |
22,8 |
19,6 |
18,4 |
Adjusted
EBITDA |
14,5 |
14,8 |
44,5 |
39,7 |
54,0 |
Adjusted
EBITDA margin, % |
37,5 |
40,3 |
37,0 |
35,7 |
35,7 |
Adjusted
operating profit (EBIT) |
11,9 |
12,4 |
36,9 |
33,0 |
45,0 |
Adjusted EBIT
margin, % |
30,9 |
33,7 |
30,7 |
29,7 |
29,7 |
New services
of net sales, % |
7,6 |
6,3 |
7,3 |
5,2 |
5,6 |
Free cash
flow |
9,9 |
11,0 |
19,8 |
23,5 |
32,6 |
Net debt to
adjusted EBITDA, x |
2,6 |
2,4 |
2,6 |
2,7 |
2,6 |
FUTURE OUTLOOK
Net Sales: Enento Group expects its net sales
growth in 2021 to be in the long-term target range (5-10%),
exceeding the mid-point of that range.
EBITDA: Enento Group expects its adjusted EBITDA
margin to improve somewhat in 2021 compared to previous year.
Capital Expenditure: Enento Group expects its
capitalised product development and software expenses in 2021 to
exceed the previous year’s level.
The Outlook assumes that exchange rates remain
approximately on the same level as in the first half of 2021.
JUKKA RUUSKA, CEO
The global economy continues its post-pandemic
recovery, but the growth outlook has been dampened during early
autumn. The Delta variant that brought uncertainty to the markets
in August has been accompanied by supply chain problems, higher
inflation figures and rising energy prices. The supply chain
problems have restricted the growth outlook. The pandemic continues
to perpetuate uncertainty in the economy and in the markets, which
may be reflected in increased credit losses.
The third quarter in 2021 was a quarter of low
growth for Enento Group. The Group’s net sales amounted to EUR 38,6
million, representing a year-on-year increase of 5,2 % (at
comparable exchange rates 4,0 %). Adjusted EBITDA decreased by 2,2
% (at comparable exchange rates 3,1 %) and amounted to EUR 14,5
million. The Group’s adjusted operating profit excluding items
affecting comparability declined by 3,6 % (at comparable exchange
rates 4,5 %) and amounted to EUR 11,9 million. Continuous and
innovative service development and new services are an important
source of growth. The new service development portfolio remains
strong and its share of net sales is now at 7,6 % and growing.
Net sales grew in all our three business areas in
the third quarter, but the growth rate was much more moderate than
in the previous quarter. Consumer information services in the
Finnish market began to recover during the period under review and
their volume is expected to grow going forward, but the growth of
demand for consumer services slowed down in Sweden. Business in the
Norwegian market has grown throughout 2021 and continued strong
growth was seen in the third quarter. The growth rate of real
estate and collateral information services in the Digital Processes
business area levelled off. In 2020, the growth in the housing
market started accelerating in the third quarter, which is the
primary reason behind the record-high net sales in the comparison
period. Growth in the Business Insight business area was
moderate.
Understanding the customer needs is the strategic
key to success in service development and our determined work
resulted in significant customer wins in the third quarter.
Regulatory reforms and the increasing significance of risk
management require the company to adapt, anticipate and understand
changes and develop risk management effectively. The increased
regulatory requirements for sufficient credit assessments in Sweden
have led to higher demand for our risk management services and has
significantly increased the use of our expanded credit information
reports. In addition, many of our customers have added student loan
information to the credit information reports they order. In
Finland, one of our significant customers is digitalising their
contract processes by taking advantage of our service that allows
them to confirm the counterparty’s right to sign for the
corporation they represent. Another significant customer started
using our postal-code-based housing price index service to monitor
and update their housing insurance portfolio.
We can look back on a tremendous ten-year journey
that we have with determination travelled together with the whole
personnel. Developing the Finnish company Asiakastieto into the
Nordic Enento Group has been a wonderful opportunity. For my part,
this is the right time to pass the baton to Jeanette Jäger, my
Swedish successor, who will start as the Group’s new CEO on 1
January 2022. I want to thank all of our customers, employees,
shareholders and partners for their trust, genuine dialogue and
excellent cooperation. We are in a great position to move
forward.
NEWS CONFERENCE:
WEBCAST AND CONFERENCE CALL
Enento Group will hold a webcast and conference
call for analysts, investors and media in English on Friday, 29
October 2021 at 3.00 p.m. EEST where CEO Jukka Ruuska and CFO Elina
Stråhlman will present the performance and events of the third
quarter 2021.
You can follow the English webcast and conference
call at: https://cloud.webcast.fi/enento/2021_1029_enento_q3
To participate in the conference call, please dial in using one
of the numbers below: Finland: +358 (0) 9 4241 7514Sweden: +46 (0)
8 1211 1105United Kingdom: +44 (0) 330 027 1503United States,
Montgomery: +1 334-777-6981The conference ID code: 716324
The presentation material will be available on the
company’s investor website at 1.30 p.m. EEST and a recording of the
webcast later during the day.
Helsinki, 29 October 2021
ENENTO GROUP PLCBoard of Directors
For further information: Jukka RuuskaCEOTel. +358
10 270 7111
Distribution: Nasdaq Helsinki Major
mediaenento.com/investors
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 425 people are working for
Enento Group in Finland, Norway, Sweden and Denmark. The Group’s
net sales for 2020 was 151.3 MEUR. Enento Group is listed on Nasdaq
Helsinki with the trading code ENENTO.
- Enento Group Plc_Interim Report Q3_2021
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