Inderes Oyj,
Company announcement 4 February 2025 at 8:00 am EET
Inderes Oyj's Financial Statements Release 2024: Revenue, profit and cash flow grew in a challenging market
Key figures in January-December 2024
- Revenue increased by 7.1% to 18.4 MEUR (17.2), recurring revenue accounted for 60.4% (61.0%) of revenue
- Sweden's revenue was 3.9 MEUR (3.6) and its share of total revenue was 21.2% (21.3%)
- EBITA totaled 2.1 MEUR (1.8) and the EBITA margin was 11.6% (10.6%)
- Adjusted EPS was EUR 0.95 (0.80)*
- Cash flow after investments increased by 106% to EUR 2.8 (1.4) million
- Inderes provided services to 427 (427) listed companies in the past 12 months
- The Inderes platform had a reach of 19.1 (19.6) million visits in 2024 and the number of active members was 66 (74) thousand at the end of the period
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.87 (0.85) per share to be paid in two instalments
*Adjusted for consolidated goodwill amortization and the associated company's (HC Andersen Capital) consolidated goodwill amortization
Key figures in October-December 2024
- Revenue increased by 1.0% to 4.2 MEUR (4.2)
- Recurring revenue grew by 6.0% to 2.8 MEUR (2.7) and accounted for 66.4% (63.3%) of total revenue
- Project revenue decreased by -7.7% to 1.4 MEUR (1.5)
- Sweden's revenue was 0.9 MEUR (1.0), the revenue accounted for 20.6% (23.7%) of total revenue
- EBITA totaled 0.0 MEUR (0.2) and the EBITA margin was 0.9% (5.7%)
Key figures
| MEUR | 10-12/2024 | 10-12/2023 | 1-12/2024 | 1-12/2023 |
| Revenue | 4.2 | 4.2 | 18.4 | 17.2 |
| Revenue growth | 1.0% | 8.0% | 7.1% | 27.1% |
| Share of recurring revenue, % | 66.4% | 63.3% | 60.4% | 61.0% |
| EBITA | 0.0 | 0.2 | 2.1 | 1.8 |
| EBITA-% | 0.9% | 5.7% | 11.6% | 10.6% |
| EBIT | -0.1 | 0.0 | 1.2 | 0.8 |
| EBIT % | -3.2% | -0.5% | 6.4% | 4.5% |
| Earnings per share | 0.26 | 0.05 | ||
| Adjusted EPS* | 0.95 | 0.80 | ||
| Cash flow after investments | 2.8 | 1.4 | ||
| Equity ratio | 54.8% | 46.8% | ||
| Net gearing | -8.2% | -27.9% | ||
| Average number of employees | 121 | 118 | 119 | 117 |
*Adjusted for consolidated goodwill amortization and the associated company's (HC Andersen Capital) consolidated goodwill amortization
Outlook
Guidance for 2025
- Revenue will grow from the previous year (18.4) MEUR
- Relative profitability measured by EBITA % excluding non-recurring items improves from the previous year (11.6%)
Background for the outlook
- The target market for main product areas is expected to remain stable or grow slightly in 2025
- Revenue will increase driven by new products and openings of new markets
- Company accelerates investments to international growth
CEO Mikael Rautanen:
In 2024, Inderes' revenue grew by 7% and EBITA by 17%. Cash flow from operating activities after investments grew by 106% to 2.8 MEUR. Our ability to generate strong cash flow again enables a growing dividend and strategic growth investments. The fourth quarter was weak, as expected, due to timing between quarters, expenses incurred in late 2024 and the weak revenue development in Sweden. As a whole, second half of the year improved from the previous year.
The largest businesses, Equity Research and Events, remained in single-digit growth in a market we estimated to decline in 2024. The Software business achieved several breakthroughs and strong growth of 40%. This is an example of the organization's ability to maintain the discipline to make good investments in long-term growth initiatives, even when it requires compromising short-term profitability. Recent successes have given us the courage to accelerate our efforts and grow the Software team already in late 2024.
In the fourth quarter, a leading European IR event provider chose Videosync as its online events platform. The agreement is commercially important and shows that we have made the right choices in the global competition of event platforms. Videosync is already by far the most common platform for IR events in the Nordics and, going forward, also more widely in Europe. Our proprietary technology scales and connects investors and listed companies increasingly internationally.
In Denmark, Inderes' strategic partner HC Andersen Capital's (HCA) revenue grew over 20% despite the very difficult market. HCA has successfully expanded its IR offering with the support of Inderes. Each of Inderes' main products now has paying customers in Denmark.
In Sweden, we are making a change of pace after two years following the acquisition. The results have not been sufficient. We are updating our sales strategy and reorganizing around sales. We are strengthening the autonomy of our product lines to identify clearer focus areas and to get in to the customers.
In Finland, Inderes' foundation is solid, and growth was moderate even though the market declined in 2024. I remain optimistic regarding the revitalization of the IPO market. We continue to see signs that projects are being concretely launched.
Based on the lessons learned so far on the internationalization journey, we will refine our strategy during the spring, and the updated strategy will be presented at a Capital Markets Day in May. It is already clear that from an international perspective, our markets are full of dysfunctional structures waiting to be disrupted and exposed to more efficient competition. Almost 80% of listed SMEs do not have analyst coverage in Europe. Investors do not have equal access to information about companies. Too low liquidity is a shared problem of both listed companies and investors.
This was our third fiscal year as a listed company. The listing has been the right stepping stone for us to take the company to the next level. Thank you to the Inderes team, community, customers and owners for the trust in the journey so far.
The Board of Directors' proposal for measures concerning the company's profit
Inderes' target is to increase the absolute profit distribution each year, which includes dividend distributions and share buybacks.
- The adjusted earnings per share in 2024 were EUR 0.95 (0.80).
- The company's distributable funds amount to EUR 11.3 (10.7) million.
- Inderes' Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.87 (0.85) per share be distributed in two installments.
- According to the proposal, the first dividend installment of EUR 0.43 per share would be paid to shareholders registered in the company's shareholders' register maintained by Euroclear Finland Oy on the record date of 14 April 2025. According to the proposal, the first dividend installment would be paid on 23 April 2025.
- According to the proposal, the second dividend installment of EUR 0.44 per share would be paid to shareholders registered in the company's shareholders' register maintained by Euroclear Finland Oy on the preliminary record date of 16 October 2025. According to the proposal, the second dividend installment would be paid on 23 October 2025.
- Inderes' Annual General Meeting is scheduled to be held in Helsinki on Thursday, 10 April, 2025.
Webcast
Inderes will host an earnings call in Finnish today at 9:30 EET. At the event, CEO Mikael Rautanen and CFO Mikko Wartiovaara will review the company's financial performance and strategy for the financial year 2024.
In addition, CEO Mikael Rautanen will present the key points of the Financial Statements Release in English in an earnings call hosted by HC Andersen Capital on 5 February 2025, at 16:30 EET.
You can follow the Finnish webcast starting at 9:30 EET on 4 February 2025, at https://inderes.videosync.fi/q4-2024.
You can follow the English webcast starting at 16:30 EET on 5 February 2025, at https://hca.videosync.fi/2025-02-05-inderes/register.
As usual, participants can ask questions during the webcast using the chat function of the video platform or by using the platform's talk back function. The presentation material will be published before the events on the company's website at www.group.inderes.fi.
This release is a summary of Inderes Oyj's financial statements release for 2024. The complete financial statements bulletin is attached to this company release as a pdf file and is also available on the company's website at www.group.inderes.fi/en.
Contact information:
Mikael Rautanen
CEO, Inderes Oyj
mikael.rautanen@inderes.fi
tel. +358 50 346 0321
Certified Adviser:
Sisu Partners Oy
Jori-Pekka Rautalahti
jori-pekka.rautalahti@sisupartners.com
tel. +358 50 382 9323
Juha Karttunen
juha.karttunen@sisupartners.com
tel. +358 40 555 4727
Inderes in brief
Inderes is a Nordic investor media connecting investors and listed companies. We provide in-depth equity research and investor relations solutions to help over 400 listed companies better serve the Nordic investor community. Inderes operates in Sweden, Finland, Denmark, and Norway and is listed on Nasdaq First North Growth Market. Read more: https://group.inderes.com/en/
