Netum Group Plc | Company announcement | 25 February 2025 at 8:00 a.m. EET
Netum Group Plc's financial statements release 2024: Significant growth and profitability improvement in 2024 - Q4 at the same level as comparison period
This release is a summary of Netum's financial statements release for January-December 2024. The complete report is attached to this release as a pdf file and available on the company's website at netum.fi/en/investors/reports-and-presentations.
Unless otherwise stated, the figures in brackets refer to the comparison period and are in the same unit as the figures for the review period. The figures for 2024 included in this financial statements release are unaudited.
October-December 2024 in brief
- Revenue decreased 2.2% on the comparison period and was EUR 11.5 (11.7) million
- EBITDA amounted to EUR 0.8 (1.0) million or 6.8 (8.1) % of revenue
- EBITA was EUR 0.7 (0.9) million or 6.5 (7.8) % of revenue
- Comparable EBITA was EUR 0.8 (0.9) million or 7.4 (7.4) % of revenue
- Operating profit was EUR -0.1 (0.0) million or -1.3 (0.3) % of revenue
- Result for the period was EUR -0.4 (-0.3) million or -3.2 (-2.9) % of revenue
- Netum Ltd's holding in Optimo Systems Oy was reduced, and it decreased the Group's operating profit and result for the period by EUR 0.1 million
January-December 2024 in brief
- Revenue increased 18.6% on the comparison period and was EUR 44.0 (37.1) million. Organic growth was 2.8%.
- EBITDA was EUR 4.6 (2.6) million or 10.5 (7.1) % of revenue
- EBITA was EUR 4.5 (2.3) million or 10.2 (6.3) % of revenue
- Comparable EBITA was EUR 4.6 (2.8) million or 10.4 (7.4) % of revenue
- Operating profit was EUR 1.1 (-0.2) million or 2.6 (-0.6) % of revenue
- Result for the period was EUR -0.5 (-1.1) million or -1.0 (-2.9) % of revenue
- Earnings per share were EUR -0.04 (-0.09)
- Number of personnel at the end of the period was 394 (412)
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.05 (0.00) per share to be paid. In addition, the Board of Directors proposes that the AGM would authorise the Board of Directors to decide at its discretion on the payment of an additional dividend up to a maximum of EUR 0.03 per share.
Group key figures
| EUR thousand unless otherwise stated | 10-12/2024 | 10-12/2023 | Change | 1-12/2024 | 1-12/2023 | Change |
| Revenue | 11,484 | 11,737 | -2.2% | 43,953 | 37,069 | 18.6% |
| Revenue growth, per cent | -2.2% | 50.6% | 18.6% | 27.2% | ||
| Organic growth, per cent | -2.2% | 15.3% | 2.8% | 11.3% | ||
| EBITDA | 782 | 953 | -17,9 % | 4,607 | 2,614 | 76.2% |
| EBITDA, % of revenue | 6.8% | 8.1% | 10.5% | 7.1% | ||
| Operating profit excluding goodwill amortisation (EBITA) | 750 | 917 | -18,2 % | 4,477 | 2,341 | 91.2% |
| EBITA, % of revenue | 6.5% | 7.8% | 10.2% | 6.3% | ||
| Comparable EBITA1) | 849 | 865 | -1,8 % | 4,560 | 2,754 | 65.6 % |
| Comparable EBITA, % of revenue | 7.4% | 7.4% | 10.4% | 7.4% | ||
| Operating profit (-loss) | -145 | 41 | 1,137 | -235 | ||
| Operating profit (-loss), % of revenue | -1.3% | 0.3% | 2.6% | -0.6% | ||
| Result for the reporting period | -369 | -335 | -456 | -1,075 | ||
| Result for the reporting period, % of revenue | -3.2% | -2.9% | -1.0% | -2.9% | ||
| Earnings per share, EUR | -0.04 | -0.09 | ||||
| Return on equity, % | -3.6% | -8.7% | ||||
| Equity ratio, % | 43.2% | 38.9% | ||||
| Number of employees, at the end of the period | 394 | 412 | ||||
| Overall capacity, own personnel (FTE), at the end of the period | 379 | 392 |
1) Items affecting comparability are presented in the table Comparable EBITA.
Outlook for 2025
Netum expects its revenue in the financial year 2024 to be EUR 41-46 million and comparable EBITA to be 7-10 % of revenue.
Netum expects the demand for IT services in the public sector to improve towards the end of the year, but intensified price competition to increase the challenge for the market. Global unprecedented uncertainty and unilateral decisions made by the major world powers create slowness and ambiguity in decision-making in the private sector. We believe that as the year progresses, adaptation to the new world situation will increase and the market will continue to grow.
Repe Harmanen, CEO:
"The fourth quarter was challenging, and the general slowdown in the market and the postponement of customers' decisions concerning projects affected our growth. The Finnish Government's decisions on spending cuts, in particular, affected our customers' readiness to invest. In the fourth quarter, our revenue decreased by 2.2%, but we managed to maintain our comparable EBITA at the previous year's level. We can be fairly satisfied with our performance. However, price competition in the market intensified significantly, and it became more difficult to win profitable projects. Continuing brisk and profitable growth in Finland's current economic climate is increasingly challenging.
On the whole, 2024 was a continuation of Netum's significant growth and success. Our revenue for January-December increased by 18.6% year-on-year and amounted to EUR 44 million. It is particularly pleasing that organic growth represented 2.8% of this, in spite of the difficult market situation. Comparable EBITA improved significantly to EUR 4.6 million, representing 10.4% of revenue.
These achievements would not have been possible without our committed customers, dedicated personnel and strong stakeholders. I would like to extend my warmest thanks to all of you for your trust and contribution, which have helped to drive us forward. In particular, I would like to highlight the strong competence and professionalism of our employees. They enable us to provide our customers with high-quality, secure and effective IT solutions. Highly skilled personnel are at the heart of Netum, and innovation and commitment are directly reflected in customer satisfaction and the growth of our business.?
Our customers' trust has also played a key role in our success. Long-term customer relationships and new partnerships are proof that the "Inspired by wisdom" thinking offered by Netum creates genuine value. We have successfully implemented several significant customer projects that have strengthened our position as a reliable IT service partner. Together with our customers, we develop responsible and secure digital solutions that support sustainable growth and meet the challenges of a changing world.?
During the year, we have deepened our sustainability thinking, and its impacts are starting to become increasingly visible in both our internal processes and the services we offer to our customers. For us, sustainability is not just a word - it is the foundation of our operations and the core of our strategy. This means concrete action to reduce environmental impacts, promote ethical business and, above all, support the well-being of our employees. We believe that employee well-being is not only a resource in working life, but it also has more far-reaching impacts on the life of individuals and society. That is why we want to develop our work community where work-life balance, development opportunities and an appreciative culture support sustainable success.
The year 2025 has begun in the midst of unprecedented global uncertainty. Selfish and unilateral decisions made by the major world powers undermine global stability, exacerbate economic uncertainty and also weaken investor confidence in Finland as well as the rest of Europe. This is likely to be directly reflected in our customers' decision-making when investments are postponed or re-evaluated. In addition, the decisions on spending cuts made by the Finnish Government in late 2024 reduce the growth opportunities of the IT sector, while price competition in the domestic market is simultaneously intensifying and inflation leads to increased cost pressures. These factors may have an impact on the second half of the year in particular. Together, these factors create an exceptionally murky operating environment that underscores the importance of adaptability and agility.?
We are responding to the growing uncertainty by strengthening our strategic planning and operational forecasting so that we can react quickly to changing circumstances. We are focusing on agility and cost efficiency while maintaining a high level of service for our customers. In addition, we are developing customer-oriented solutions that support their business even in uncertain times. This ensures that we are able to adapt to market changes and continue our sustainable growth even in challenging conditions. In 2025, we estimate revenue to be in the range of EUR 41-46 million and comparable EBITA to be 7-10% of revenue.
I have had an inspiring start to the year as Netum Group Plc's new CEO. While I am familiar with the company through my work on the Board of Directors, the new role provides me with fresh perspectives and the opportunity to focus even more deeply on the company's day-to-day operations. My meetings with our employees and customers have been particularly valuable - their thoughts and wishes guide us in building an even stronger Netum. These conversations strengthen my confidence in the future, and together with we can move the company forward!"
Webcast
CEO Repe Harmanen will present the main points of the release in a live webcast today at 12.30 p.m. EET. The event is in Finnish and can be followed at https://netum.events.inderes.com/q4-2024.
During the event, the audience can place questions through the webcast chat function. A recording of the webcast is available on the company's website at netum.fi/en/investors/reports-and-presentations later that day.
For further information, please contact:
Netum Group Plc
Repe Harmanen, CEO
+358 400 46 7717
repe.harmanen@netum.fi
Mari Ala-Sorvari, Head of external reporting and IR
+358 50 494 9930
mari.ala-sorvari@netum.fi
Certified Adviser:
Evli Plc
+358 40 579 6210
Netum Group Plc
Netum is a strongly and profitably growing IT service partner that builds a functional and secure digital society. We help our customers develop their digital business by designing and implementing sustainable digital solutions tailored to their needs - wisely and responsibly. Netum employs approximately 400 people, and the company's revenue in 2024 was EUR 44 million. Netum Group Plc's shares are listed on Nasdaq Helsinki First North (NETUM). www.netum.fi
