Enento Group’s Interim Report 1.1. – 31.3.2022: Growth in a
challenging market environment
ENENTO GROUP PLC, STOCK EXCHANGE RELEASE 28 APRIL 2022 AT 12.30
EEST
Enento Group’s
Interim Report 1.1. –
31.3.2022:
Growth in a challenging market environment
SUMMARY
January -
March 2022 in
brief
- Net sales amounted
to EUR 40,7 million (EUR 39,7 million), an increase of 2,6 % (at
comparable exchange rates an increase of 4,4 %).
- Adjusted EBITDA
excluding items affecting comparability was EUR 13,5 million (EUR
13,9 million), a decrease of 2,9 % (at comparable exchange rates
decrease of 1,3 %).
- Adjusted EBIT
excluding items affecting comparability and amortisation from fair
value adjustments related to acquisitions was EUR 9,5 million (EUR
11,5 million), a decrease of 17,8 %. 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 6,1 million (EUR 8,5
million). Operating profit included amortisation from fair value
adjustments of EUR 3,1 million (EUR 3,2 million) related to
acquisitions and EUR 0,3 million (EUR -0,1 million) items affecting
comparability mainly arising from redundancy related costs and
integration costs. Operating profit includes to the above mentioned
impairment of Tambur service.
- New services
represented 5,9 % (6,9 %) of net sales.
- Free cash flow
amounted to EUR 7,1 million (EUR 5,7 million). The effect of items
affecting comparability on free cash flow was EUR 0,1 million (EUR
-0,0 million).
- Earnings per share
was EUR 0,18 (EUR 0,27).
- Comparable earnings
per share were EUR 0,28 (EUR 0,37)1.
- In Sweden bank
consortium is exercising the option to acquire the Tambur- service,
estimated to take place in 2023
1 The comparable earnings per share does not
contain amortisation from fair value adjustments related to
acquisitions or their tax impact.
KEY FIGURES
|
|
|
|
|
1.1. – |
1.1. – |
1.1. – |
EUR million |
31.3.2022 |
31.3.2021 |
31.12.2021 |
Net sales |
40,7 |
39,7 |
163,5 |
Net sales growth, % (comparable fx rates) |
4,4 |
2,4 |
5,9 |
Net sales growth, % (reported fx rates) |
2,6 |
5,4 |
8,1 |
Operating profit (EBIT) |
6,1 |
8,5 |
35,2 |
EBIT margin, % |
14,9 |
21,3 |
21,6 |
Adjusted EBITDA |
13,5 |
13,9 |
59,1 |
Adjusted EBITDA margin, % |
33,3 |
35,2 |
36,2 |
Adjusted operating profit (EBIT) |
9,5 |
11,5 |
49,0 |
Adjusted EBIT margin, % |
23,3 |
29,0 |
30,0 |
New services of net sales, % |
5,9 |
6,9 |
7,3 |
Free cash flow |
7,1 |
5,7 |
29,8 |
Net debt to adjusted EBITDA, x |
2,3 |
2,5 |
2,4 |
REVISED 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.
REVISED 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.
Prior Future Outlook
The general macroeconomic environment and the
pandemic are persisting uncertainties. 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
recent weakening of Swedish Krona 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
Prior Guidance
Net Sales: Enento Group expects its net sales
growth in 2022 at comparable exchange rates to be toward 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
This was my first quarter in the Enento Group and it was a
quarter where we experienced a new COVID-19 wave and the war in
Ukraine. As for any new CEO this first phase is very much about
getting a view of what do we do well and what can we continue to
improve in dialougues with customers, employees, partners and
investors. My conclusion from the first quarter is that our
management team and our employees are motivated and committed and
have a good understanding of both our customer needs and our
services. Our aim is to deliver a superior customer experience and
I’m convinced that a truly customer-centric mindset within Enento
will lead to even more loyal customers and further growth.
Now in Q1 2022 our NPS level on the company customers continue
to be high and our consumer customers NPS levels has increased
significantly. We have a structured approach by using both a
technical and an organizational set up for a cross Nordic CX
(customer experience) program. We are taking big steps from
insights to concrete actions with the purpose to create a superior
customer experience.
Despite the challenging market situation, Enento
Group’s net sales in the first quarter increased by 4,4% (2,6 at
reported exchange rates) and totalled 40,7 million euros. Adjusted
EBITDA decreased by 1,3% (2,9% at reported exchange rates) to 13,5
million euros. The Group's adjusted EBITdecreased by 16,4 % (17,8%
at reported exchange rates) to 9,5 million euros. The decline in
profitability was mainly due to the impairment of development
expenses for the Tambur service platform used in Swedish housing
transaction processes. New services was 5,9% of the net sales.
The net sales of the Consumer Insight Business Area were
affected by the strong demand for consumer information services in
the Finnish and Swedish markets. The net sales of the real estate
and collateral information services in the Digital Processes
Business Area were at the previous year's level, but demand for the
Business Area's compliance services increased significantly due to
sanctions imposed as a result of Russia's attack to Ukraine. The
net sales of the Business Insight Business Area in the Finnish
market decreased year-on-year and this is still affected by the low
demand for risk management services. Enento have offered ESG report
on the Finnish market since 2017. In March this quarter, the
Business Insight Business Area launched the first ESG report also
in Sweden. We strongly believe that sustainability offering
presents a truly Nordic growth opportunity for Enento
Group.
Enento has successfully managed and developed the
Tambur service platform, introduced in 2018 and used since then by
Swedish banks and real estate brokers in housing transaction
processes. Banks have been satisfied with the service that handles
most of the housing transactions in the Swedish market. As
previously announced, based on our cooperation agreement, the banks
have now reached a decision to transfer the Tambur platform to be
jointly owned by the banks. Enento will continue to provide
services based on the housing transaction service platform until
the final handover date in 2023, but conditions related to the
transition period are still being negotiated.
The development of the Nordic business platform is
progressing, and we have just launched the new Swedish ESG-report,
on top of this new platform. We continue to see platform
development to be key to operate and develop services more
efficiently, but we also see a need to develop our plans and
priorities in this area to secure succesful long-term margin
improvements. We continue to see both short- and long-term benefits
of building and operating a Nordic futureproof platform.
There are and there will be general uncertainties
in the global economy, but so far, our business has adapted fairly
well to the diverse effects of the exceptional circumstances.
However, the war in Ukraine may also impact negatively
macroeconomic development in the Nordics through lower economic
growth, confidence and activity levels and thus indirectly impact
demand of our services. Despite the uncertainties, I am convinced
that we have significant potential to further develop the Nordic
Enento so that we can provide a consistent and high-quality
customer experience in all our markets and a sustainable return for
our shareholders.
NEWS CONFERENCE:
WEBCAST AND CONFERENCE CALL
Enento Group will hold a webcast and conference
call for analysts, investors and media in English on Thursady, 28
April 2022 at 3.00 p.m. EEST where CEO Jeanette Jäger and CFO Elina
Stråhlman will present the performance and events of the first
quarter 2022.
You can follow the English webcast and conference
call at: https://cloud.webcast.fi/enento/2022-04-28-enento-q1
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:
+1 323-701-0170United States, NY: +1 323-701-0170The conference ID
code: 962521
The presentation material will be available on the
company’s investor website at 2.30 p.m. EEST and a recording of the
webcast later during the day.
Helsinki, 28 April 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_Interim Report_Q1_2022
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