Talenom Plc, Stock Exchange Release 24 April 2025 at 9:00 EEST
Talenom Plc's Business Review January-March 2025: The separation of the Software business was completed, the Finnish business grew while profitability improved further
January-March 2025 in brief
- Net sales EUR 35.7 million (34.1), growth 4.9% (8.8). Due to the income recognition principles of the Software business, net sales were EUR 1.5 million higher than in the comparison period. Comparable net sales growth was 0.5%.
- EBITDA EUR 10.7 million (9.5), 29.9% (27.9) of net sales
- Operating profit (EBIT) EUR 4.7 million (3.9), 13.1% (11.3) of net sales
- Net profit EUR 2.5 million (2.0)
- Earnings per share EUR 0.06 (0.04)
Key figures
| Group | 1-3/2025 | 1-3/2024 | Change, % |
| Net sales, EUR 1,000 | 35,718 | 34,053 | 4.9% |
| Net sales growth, % | 4.9% | 8.8% | |
| EBITDA, EUR 1,000 | 10,669 | 9,486 | 12.5% |
| EBITDA of net sales, % | 29.9% | 27.9% | |
| Operating profit, EUR 1,000 | 4,673 | 3,855 | 21.2% |
| Operating profit of net sales, % | 13.1% | 11.3% | |
| Return on investment (ROI), % (rolling 12 months) | 8.1% | 6.0% | |
| Interest-bearing net liabilities, EUR 1,000 | 91,611 | 84,697 | 8.2% |
| Gearing ratio, % | 174% | 172% | |
| Equity ratio, % | 29.0% | 26.9% | |
| Net investments, EUR 1,000 | 4,413 | 8,039 | -45.1% |
| Liquid assets, EUR 1,000 | 9,021 | 12,314 | -26.7% |
| EPS, EUR | 0.06 | 0.04 | 23.1% |
| Weighted average number of shares during the period | 45,477,972 | 45,434,562 | 0.1% |
| Net profit, EUR 1,000 | 2,507 | 2,034 | 23.2% |
Guidance for 2025 unchanged
Talenom estimates that 2025 net sales will be around EUR 130-140 million and EBITDA around EUR 36-42 million.
CEO Otto-Pekka Huhtala
The Group's net sales in the first quarter were EUR 35.7 (34.1) million. The growth was 4.9% (8.8). We are now, for the first time, reporting the key figures for the business areas under the updated strategy, Software business and Accounting business. The net sales of the Accounting business were EUR 28.8 million and continuously billed Software business EUR 6.9 million. Due to the income recognition principles of the Software business, net sales were EUR 1.5 million higher than in the comparison period. A more detailed description of the Software business can be found in the key business figures section of the review.
In Finland, the decline in transaction volumes of our customers has stopped. Thanks to successful new customer acquisition in 2024, Finland's comparable net sales increased by approximately 4.9% (0.1), while net sales still declined in the last quarter of 2024. We estimate that a turning point is at hand in the volumes and growth of the Finnish business.
Sweden's net sales decreased as a result of customer churn in 2024. In Sweden, efforts to turn net sales growth around have progressed, and this is our main priority in the near future. We saw the trend turning for the better in new sales and customer churn. ONE Talenom operating methods, processes and the introduction of our software are progressing systematically. We estimate that the combined effects of the measures will be reflected in financial performance towards the end of the year.
Spain's net sales remained at the level of the comparison period. New customer acquisition has progressed well. We have systematically focused on improving profitability by investing in acquiring recurring and profitable customers. As a result, one-off net sales have decreased while recurring net sales have increased, improving the conditions for profitability and growth in the future. The transition to e-invoicing driven by legislation is the most significant trend driving future customer demand. We have built software capabilities to respond to market change. We also continued to roll out our proprietary software to our customers to facilitate their business and prepare them for the e-invoicing transition.
The Group's EBITDA was EUR 10.7 million (9.5) and operating profit was EUR 4.7 million (3.9). The Accounting business' EBITDA was EUR 5.3 million and the Software business' EBITDA adjusted for the income recognition principle was EUR 3.8 million. The change in the net sales recognition principle in the Software business, together with unallocated one-off items, has a net positive impact of approximately EUR 0.9 million compared to the reference period. Finland's excellent profitability impacted profitability positively, while the profitability of other countries remained low. Operating profit development was further hampered by increased depreciation. The level of investment in proprietary software decreased by approximately EUR 0.8 million compared to the reference period. The impact of the lower investment level is visible as improved cash flow.
Our outlook has brightened as the strategy update has progressed. We have put the updated strategy into practice, and we are already seeing clear positive signs. By focusing on our core businesses, we will achieve results faster. We move forward with two solid pillars, software and accounting services, leveraging our expertise in the market's digital transformation. Our vision is to be the most preferred partner in financial management.
Webcast
CEO Otto-Pekka Huhtala and CFO Matti Eilonen will present the main points of the review and provide more detailed information on software business in a live webcast today 24 April 2025 at 10:00 EEST (in Finnish) and at 12:00 EEST (in English). Recordings of the events will be published on Talenom's website https://investors.talenom.com/fi/ and https://investors.talenom.com/en
You can watch the webcast live in Finnish at 10:00 EEST at https://talenom.events.inderes.com/q1-2025
You can watch the webcast live in English at 12:00 EEST at https://talenom.events.inderes.com/q1-2025-eng
The presentation materials will be published before the start of the briefing on the company's website.
Talenom Plc
Further information:
Otto-Pekka Huhtala
CEO, Talenom Plc
+358 40 703 8554
otto-pekka.huhtala@talenom.fi
Talenom in brief
Talenom is an agile and progressive accounting firm established in 1972. Our business idea is to help entrepreneurs succeed by making their daily lives easier with the market's easiest-to-use digital tools and highly automated personal services. In addition to comprehensive accounting services, we support our customers' business with a wide range of expert services and our partners' services. Our vision is to be the preferred partner in financial management.
Talenom's growth history is strong - average annual net sales growth was approximately 16% between 2005 and 2024. In 2024, Talenom's net sales was some EUR 126 million and the company had 1,554 employees in Finland, Sweden, Spain and Italy at the end of the year. Talenom's share is quoted on the Main Market of Nasdaq Helsinki. Read more: investors.talenom.com/en
