Correction to the release on 21 July 2022: Enento Group’s Half Year
Financial Report 1.1. – 30.6.2022: Continuing growth with solid
development in Consumer credit information
ENENTO GROUP PLC, STOCK EXCHANGE RELEASE 21 JULY 2022 AT 1.45
P.M. EEST
Correction to the release on 21 July
2022: Enento Group’s
Half Year Financial Report
1.1. –
30.6.2022:
Continuing growth with solid development in Consumer credit
information
Correction in the release:
Incorrect tables updated in the Finnish
Half Year Financial
Report 2022.
SUMMARY
April –
June 2022 in brief
- Net sales amounted
to EUR 43,4 million (EUR 42,1 million), an increase of 3,1 % (at
comparable exchange rates an increase of 4,8 %).
- Adjusted EBITDA
excluding items affecting comparability was EUR 15,5 million (EUR
16,1 million), a decrease of 3,6 % (at comparable exchange rates
decrease of 2,2 %).
- Adjusted EBIT
excluding items affecting comparability and amortisation from fair
value adjustments related to acquisitions was EUR 12,8 million (EUR
13,5 million), a decrease of 5,1 %.
- Operating profit
(EBIT) was EUR 9,7 million (EUR 10,1 million). Operating profit
included amortisation from fair value adjustments of EUR 3,1
million (EUR 3,2 million) related to acquisitions and EUR 0,1
million (EUR 0,2 million) items affecting comparability mainly
arising from redundancy related costs and integration costs.
- New services
represented 5,1 % (7,4%) of net sales.
- Free cash flow
amounted to EUR 6,4 million (EUR 4,3 million). The effect of items
affecting comparability on free cash flow was EUR -0,2 million (EUR
-0,2 million).
- Earnings per share
was EUR 0,29 (EUR 0,32).
- Comparable earnings
per share were EUR 0,40 (EUR 0,42)1.
- Enento Group made
the second tranche investment in Goava Sales Intelligence AB, EUR
1,8 million.
January –
June 2022 in brief
- Net sales amounted
to EUR 84,1 million (EUR 81,8 million), an increase of 2,8 % (at
comparable exchange rates an increase of 4,6 %).
- Adjusted EBITDA
excluding items affecting comparability was EUR 29,0 million (EUR
30,0 million), a decrease of 3,3 % (at comparable exchange rates a
decrease of 1,8 %).
- Adjusted EBIT
excluding items affecting comparability and amortisation from fair
value adjustments related to acquisitions was EUR 22,3 million (EUR
25,0 million), a decrease of 10,9%. Adjusted EBIT includes an
impairment and reversal of work-in-progress of EUR 1,6 million
relating to Tambur service due to future transfer of the
service.
- Operating profit
(EBIT) was EUR 15,8 million (EUR 18,6 million). Operating profit
included amortisation from fair value adjustments of EUR 6,1
million (EUR 6,3 million) and items affecting comparability of EUR
0,4 million (EUR 0,1 million) related to redundancy costs and
integration costs. Operating profit also includes the above
mentioned Tambur service related impairment.
- New products and
services represented 5,3 % (7,2 %) of net sales.
- Free cash flow
amounted to EUR 13,5 million (EUR 9,9 million). The effect of items
affecting comparability on free cash flow was EUR -0,3 million (EUR
-0,2 million).
- Earnings per share
were EUR 0,47 (EUR 0,58).
- Comparable earnings
per share were EUR 0,68 (EUR 0,79)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 |
1.4.
–30.6.2022 |
1.4.
–30.6.2021 |
1.1. – 30.6.2022 |
1.1. – 30.6.2021 |
1.1.
–31.12.2021 |
|
|
|
|
|
|
Net sales |
43,4 |
42,1 |
84,1 |
81,8 |
163,5 |
Net sales growth, % (comparable fx rates) |
4,8 |
11,4 |
4,6 |
6,8 |
5,9 |
Net sales growth, % (reported fx rates) |
3,1 |
14,7 |
2,8 |
10,0 |
8,1 |
Operating profit (EBIT) |
9,7 |
10,1 |
15,8 |
18,6 |
35,2 |
EBIT margin, % |
22,3 |
24,1 |
18,7 |
22,7 |
21,6 |
Adjusted EBITDA |
15,5 |
16,1 |
29,0 |
30,0 |
59,1 |
Adjusted EBITDA margin, % |
35,7 |
38,2 |
34,5 |
36,7 |
36,2 |
Adjusted operating profit (EBIT) |
12,8 |
13,5 |
22,3 |
25,0 |
49,0 |
Adjusted EBIT margin, % |
29,5 |
32,0 |
26,5 |
30,6 |
30,0 |
New services of net sales, % |
5,1 |
7,4 |
5,3 |
7,2 |
7,3 |
Free cash flow |
6,4 |
4,3 |
13,5 |
9,9 |
29,8 |
Net debt to adjusted EBITDA, x |
2,6 |
2,7 |
2,6 |
2,7 |
2,4 |
FUTURE OUTLOOK
The general macroeconomic risks are increasing due
to the war in Ukraine as well as continued uncertainty from the
pandemic. These developments may have a negative impact on the
demand of our services. However, the increased market demand
for Enento Group’s services is expected to continue.
This, combined with introduction of new services are expected to
support growth in 2022. However, the volatility of Swedish Krona
can cause uncertainty in relation to growth outlook and may impact
the net sales growth with reported exchange rates in 2022.
Enento Group expects that the platform
transformation–related costs will continue to impact the results in
2022.
GUIDANCE
Net Sales: Enento Group expects its net sales
growth in 2022 at comparable exchange rates to be around the lower
end of the long-term target range (5-10 %).
EBITDA: Enento Group expects its adjusted EBITDA
margin at comparable exchange rates to improve somewhat in 2022
compared to previous year.
Comparable exchange rates mean that the effects of
any changes in currencies are eliminated by calculating the figures
for the previous period using current period’s exchange rates.
JEANETTE JÄGER, CEO
Enento continued to grow in the second quarter.
Despite record-high comparison figures and increased geopolitical
challenges, our net sales grew by 4.8%. The growth was especially
driven by high demand for consumer credit services. Profitability
continued to decline, and Adjusted EBITDA margin was at 35.7%, due
to the fact that investments in growth and capabilities, higher
maintenance costs following discontinued development of Tambur
services and changed sales mix continued to impact results. We have
various measures ongoing and plan to improve the profitability for
the second half of the year.
Net sales increased in all our three business
areas. The strongest growth was seen in the Consumer Insight, where
strong demand for consumer credit services in Finland and Sweden
continued. In the Business Insight, the revenue development
remained more moderate, and continued to be impacted by the
stagnated demand for risk management services for enterprise
customers. Following the cooling down of housing markets, the
growth of the Digital Processes’ real estate and collateral
information services slowed down but was mitigated by the
significantly increased demand for compliance services, following
the sanctions imposed as a result of Russia's attack to
Ukraine.
Enento has under Digital Processes Business Area
successfully managed and developed the Swedish Tambur housing
transaction service platform. As previously announced, based on a
cooperation agreement, the banks have decided to transfer the
platform to be jointly owned by the banks. Enento continues to
provide services based on the platform until the final handover
date in 2023. Final conditions related to the transition period and
timing are still being negotiated, but discontinuance of the
service development and related sales will impact revenue and
profitability more negatively from third quarter onwards.
We continue to see high growth potential in Nordic
business information markets and continue to implement the strategy
accordingly. In May Enento decided to increase its ownership in
Goava to 48% to support our ambition of becoming the leading
provider of business information by growing in the sales
intelligence domain and strengthening our capabilities within
unstructured data. We are also continuing to expand our Nordic
offering into risk management services in Norway, targeting small-
and medium sized customers. When it comes to strengthening our
leading position in credit information, we continue the strategic
development to support our customers with better and more
sustainable credit decisions. This year we have launched daily
credit register with on-time positive credit data for Swedish
markets, and implementation work with several customers is
ongoing.
With increased macro-economic uncertainties, we do
not expect to see such high economic growth as we did before the
Russian attack on Ukraine. In connection with the first quarter
results, we already revised our sales outlook for 2022. The
challenges are expected to continue and the economic outlook of
Nordic countries for the future years seems overall more
moderate than what was the general view a few months back.
To navigate in a rapidly changing world it is more
important than ever to be smarter, faster and more agile. In recent
years, we have also made significant investments into modern
capabilities and enablers to support future growth, but this has
come with increased costs. Now, as a direct consequence of the
changing outlook and challenges around us, we are carrying out
extensive work to prioritize initiatives, redistribute resources
and ensure continued good profitability. The results of this work
will follow during the fall. Simultaneously, we will continue to
focus strongly on continuous improvement of the customer experience
and quality. Customer-driven innovation and making it more easy to
sell, easy to buy and easy to use, will support both the growth and
profitability going forward.
For more than a century, we have been building
trust and developing data-driven solutions that power societies
with intelligence. We provide mission-critical services that are
needed at all times, the good and the bad. The past has shown that
our business model is resilient and adopts well in various
circumstances. Our purpose is to build trust in the everyday, and
in uncertain times, that is more important than ever.
NEWS CONFERENCE:
WEBCAST AND CONFERENCE CALL
Enento Group will hold a webcast and conference
call for analysts, investors and media in English on Thursady, 21
July 2022 at 2.00 p.m. EEST where CEO Jeanette Jäger and CFO Elina
Stråhlman will present the performance and events of the second
quarter 2022.
You can follow the English webcast and conference
call at: https://cloud.webcast.fi/enento/2022-07-21-enento-q2
To participate in the conference call, please dial in using one
of the numbers below: Finland: +358 (0)9 7479 0572Sweden: +46 (0)8
5664 2754United Kingdom: +44 (0)330 165 3641United States, LA:
+1 323-701-0170The conference ID code: 655339
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, 21 July 2022
ENENTO GROUP PLCBoard of Directors
For further information: Jeanette JägerCEOEnento
Group PlcTel. +46 72 141 00 00
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 432 people are working for
Enento Group in Finland, Norway, Sweden and Denmark. The Group’s
net sales for 2021 was 163.5 MEUR. Enento Group is listed on Nasdaq
Helsinki with the trading code ENENTO.
- Enento Group Plc_Half Year Financial Report_2022
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