ENENTO GROUP PLC, STOCK EXCHANGE RELEASE 29 APRIL 2021 AT 12.00 EEST
Enento Group’s Interim Release 1.1. – 31.3.2021: Net sales growth was supported by new services and a business model that adapts well to exceptional circumstances
SUMMARY
January – March 2021 in brief
- Net sales amounted to EUR 39,7 million (EUR 37,6 million), an increase of 5,4 % (at comparable exchange rates an increase of 2,4 %).
- Adjusted EBITDA excluding items affecting comparability was EUR 13,9 million (EUR 12,4 million), an increase of 12,4 % (at comparable exchange rates an increase of 9,9 %).
- Adjusted EBIT excluding items affecting comparability and amortisation from fair value adjustments related to acquisitions was EUR 11,5 million (EUR 10,5 million), an increase of 10,0 %.
- Operating profit (EBIT) was EUR 8,5 million (EUR 7,1 million). Operating profit included items affecting comparability of EUR 3,0 million (EUR 3,3 million), mainly arising from amortisation from fair value adjustments of EUR 3,2 million (EUR 3,0 million) related to acquisitions as well as M&A related expenses, reversal of excess redudancy accruals and received insurance compensation.
- New products and services represented 6,9 % (4,4 %) of net sales.
- Free cash flow amounted to EUR 5,7 million (EUR 7,3 million). The effect of items affecting comparability on free cash flow was EUR -0,0 million (EUR -0,1 million).
- Earnings per share were EUR 0,27 (EUR 0,23).
- Comparable earnings per share were EUR 0,37 (EUR 0,32)1.
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 | 31.3.2021 | 31.3.2020 | 31.12.2020 | |
| Net sales | 39,7 | 37,6 | 151,3 | |
| Net sales growth, % | 5,4 | 9,0 | 3,7 | |
| Operating profit (EBIT) | 8,5 | 7,1 | 27,8 | |
| EBIT margin, % | 21,3 | 18,9 | 18,4 | |
| Adjusted EBITDA | 13,9 | 12,4 | 54,0 | |
| Adjusted EBITDA margin, % | 35,2 | 33,0 | 35,7 | |
| Adjusted operating profit (EBIT) | 11,5 | 10,5 | 45,0 | |
| Adjusted EBIT margin, % | 29,0 | 27,8 | 29,7 | |
| New products and services of net sales, % | 6,9 | 4,4 | 5,6 | |
| Free cash flow | 5,7 | 7,3 | 32,6 | |
| Net debt to adjusted EBITDA, x | 2,5 | 2,8 | 2,6 | |
FUTURE OUTLOOK
Net Sales: Enento Group expects its net sales growth in 2021 to be in the long-term target range (5-10%) but somewhat lower than the mid-point of the target range.
EBITDA: Enento Group expects its adjusted EBITDA margin to improve somewhat in 2021 compared to previous year.
Capital Expenditure: Enento Group expects its capitalised product development and software expenses in 2021 to exceed the previous year’s level.
The Outlook is based on the assumption that exchange rates remain at the current level.
JUKKA RUUSKA, CEO
Enento Group’s net sales in the first quarter amounted to EUR 39,7 million, representing a year-on-year increase of 5,4 % (at comparable exchange rates 2,4 %) in spite of the continued challenges in the operating environment. The progress of COVID-19 vaccinations and support measures in society nevertheless create positive expectations for the future. The Group’s adjusted EBITDA increased by 12,4 % (at comparable exchange rates 9,9 %) and amounted to EUR 13,9 million. Adjusted EBIT excluding non-recurring items and other items affecting comparability grew by 10,0 % (at comparable exchange rates 7,6 %) and amounted to EUR 11,5 million. Innovative service development and new services are an important source of growth for us. With this in mind, I am very pleased that the share of net sales represented by new services continues to grow and was 6.9 % for the period.
The development of net sales was influenced in the Finnish and Swedish markets by a slight decrease in the net sales of the Risk Decisions business area due to a reduction in the use of our services caused by the COVID-19 pandemic. In addition, the interest rate cap regulations on unsecured consumer credit will remain in effect at least until the end of September, which reduces the demand for our services in the Finnish market. In the SME & Consumers business area, growth was achieved in both markets in services sold directly to consumers. The net sales of the Customer Data Management business area were higher than in the previous year thanks to the good growth of services aimed at B-to-C customers. The housing transaction services of the Digital Processes business area saw continued strong growth in both markets, supported by strong market demand.
Advanced information acquisition and our information processing capabilities and competencies are among Enento’s competitive advantages. We continuously seek new information, or new and unique data sources, as raw material for our service development. In line with our strategy, we invest in the use of unstructured data. Our ability to combine this type of data with the services, service development and customer needs creates many new growth opportunities for us. One example of a new service area in which we have taken advantage of entirely new data sources and data acquisition methods is ESG information on companies. Another example is our Consumer Credit Inquiry System, which caters to a need created by the lack of a national positive credit information register in Finland. In addition, we launched a new service during the first quarter that enables the use of positive credit information in the business segment.
I have on 21 April 2021 given notice of my resignation from the company. After nearly a decade as CEO, it’s time for personal renewal and time to move towards new. It has been a great opportunity to develop Asiakastieto to Enento Group together with great Enento employees committed to business development. I am proud of the results we have achieved and would like to thank all my excellent colleagues. Meeting customers is one of the best parts of this work and I want to express my gratitude to our customers for the opportunity for a real dialogue.
I strongly believe that innovative service development, the synergies achieved through acquisitions and highly competent employees give Enento a great opportunity to achieve success by providing customers with even better services to support even better and more sustainable decision-making.
NEWS CONFERENCE: WEBCAST AND CONFERENCE CALL
Enento Group will hold a webcast for analysts, investors and media in English on Thursday, 29 April 2021 at 3.00 p.m. EEST where CEO Jukka Ruuska and CFO Elina Stråhlman will present the performance and events of the first quarter 2021.
You can follow the English webcast and conference call at:
https://cloud.webcast.fi/enento/enento_2021_0429_q1
To participate in the conference call, please dial in using one of the numbers below:
Finland: +358 (0)9 7479 0360
Sweden: +46 (0)8 5033 6573
United Kingdom: +44 (0)330 336 9104
United States, LA: +1 323-701-0223
United States, NY: +1 646-828-8195
The conference ID code: 954051
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, 29 April 2021
ENENTO GROUP PLC
Board of Directors
For further information:
Jukka Ruuska
CEO
Enento Group Plc
Tel. +358 10 270 7111
Distribution:
Nasdaq Helsinki
Major media
enento.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 425 people are working for Enento Group in Finland, Norway, Sweden and Denmark. The Group’s net sales for 2020 was 151,3 MEUR. Enento Group is listed on Nasdaq Helsinki with the trading code ENENTO.