Terveystalo Plc, Half-Year Report 2025 17 July, 2025 at 09:00 EEST
This release is a summary of Terveystalo's Half-Year Report January-June 2025.
The full release is attached to this stock exchange release and is available on
our website at: https://www.terveystalo.com/en/company/investors/reports-and
-presentations/
April-June 2025 in brief
· Revenue decreased by 5.5 percent year-on-year to EUR 321.5 (340.1) million.
There was one working day less than during the comparison period.
The Healthcare Services segment revenue decreased by 1.6 percent to EUR 257.4
(261.4) million. The working-day adjusted revenue was flat year-on-year.
Portfolio Businesses' revenue decreased by 21.8 percent to EUR 49.0 (62.7)
million. The revenue from Sweden decreased by 7.3 percent and amounted to EUR
20.5 (22.1) million.
· Adjusted[1)] operating profit (EBIT) increased by 5.1 percent year-on-year
to EUR 36.7 (34.9) million, representing 11.4 (10.3) percent of revenue.
Improved operational efficiency and a more favourable service mix strengthened
the adjusted EBIT of Healthcare Services. In Portfolio Businesses, adjusted EBIT
increased from the comparison period, due to the termination of low margin
outsourcing contracts and improved operational efficiency. In Sweden, adjusted
EBIT improved slightly primarily due to improved operational efficiency.
· Items affecting comparability[1)] with a negative effect on EBIT were EUR
3.3 (10.4) million.
· Operating profit (EBIT) increased by 36.2 percent and amounted to EUR 33.4
(24.6) million.
· The result for the period was EUR 22.2 (14.3) million.
· Earnings per share (EPS) increased by 55.1 percent and amounted to EUR 0.18
(0.11).
· Cash flow from operating activities was EUR 40.5 (44.4) million.
· NPS (Net Promoter Score) for appointments was 86.8 (86.4). NPS for hospitals
was 95.4 (95.2).
January-June 2025 in brief
· Revenue decreased by 3.2 percent year-on-year to EUR 668.5 (690.4) million.
There were two working days less than during the comparison period. The revenue
of the Healthcare Services segment increased by 1.6 percent to EUR 537.9 (529.4)
million. The revenue of Portfolio Businesses decreased by 21.8 percent to EUR
99.6 (127.3) million. The revenue from Sweden decreased by 9.1 percent to EUR
41.0 (45.1) million.
· Adjusted[1)] operating profit (EBIT) increased by 12.6 percent year-on-year
to EUR 84.5 (75.1) million, representing 12.6 (10.9) percent of revenue.
Profitability strengthened in Healthcare Services and Portfolio businesses due
to improved operational efficiency and commercial measures. Profitability in
Sweden improved slightly, following the planned progress of the profit
improvement programme.
· Items affecting comparability[1)] with a negative effect on EBIT were EUR
4.7 (14.8) million.
· The result for the period was EUR 55.6 (37.9) million.
· Earnings per share (EPS) increased by 46.5 percent and amounted to EUR 0.44
(0.30).
· Net debt/EBITDA was 2.2 (2.8).
· Net debt/adjusted EBITDA was 2.1 (2.5).
· Cash flow from operating activities was EUR 67.8 (93.5) million.
The figures in parentheses refer to the corresponding period one year ago.
[1) Adjustments are material items outside the ordinary course of business,
associated with acquisition-related expenses, restructuring-related expenses,
gains and losses on the sale of assets, impairment losses, strategic projects,
and other items affecting comparability. Adjustments related to the profit
improvement programs were approximately EUR 3.0 (4.9) million during the second
quarter and EUR 5.3 (9.4) million during January-June.]
President and CEO Ville Iho: Strong profitability development continued
Terveystalo's profitability continued to strengthen in the second quarter of
2025 and was the best ever in both relative and absolute terms, thanks to
improved operational efficiency across the board. Profitability improved in all
three business segments and adjusted operating profit (EBIT) increased by 5
percent to EUR 37 million and represented 11.4 percent of revenue. Earnings per
share increased by 55 percent to EUR 0.18.
The improvement in operational efficiency continued to strengthen our
profitability, despite revenue headwinds. In the Healthcare Services business
area, insurance demand continued to strengthen, but development in occupational
health was subdued. In addition to the shorter quarter in terms of working days
than in the comparison period, this is due to, among other things, a decrease in
the number of occupational health end users and a change in corporate customers'
buying behaviour toward more cautious spending due to the uncertain
macroeconomic situation. As expected, the revenue of the Portfolio Businesses
decreased by more than twenty percent due to expired outsourcing contracts, a
reduction in low margin staffing volumes, and the subdued market situation in
general. There are signs of openings in the public market, and two partnerships
of significant size will be put out to tender in early autumn. Demand for
consumer-driven oral health services recovered, and the revenue of oral health
services increased slightly. Revenue in Sweden also decreased due to contracts
that expired in 2024 and the continued weak economic environment.
The strengthened operational foundation positions us well to advance the
development of our services in all customer groups. We have a strong focus on
customer-oriented product development and technology-driven reduction of
production costs. After the inflation spike, volume will become the main growth
driver in the healthcare services market. In occupational health, the focus is
particularly on the effectiveness of preventive services, reducing production
costs and streamlining business services for corporate customers. In insurance
customers, we are looking for better integration of the customer journey between
the insurance company and our services, and better management of claims costs
through more efficient customer guidance. Our objective is to provide
comprehensive and customised solutions for public healthcare. The development of
digital services continues to be vigorous across all customer relationships.
In our largest customer segment, occupational health, our customers' needs
evolve in response to shifts in financial circumstances, workplace dynamics, and
broader trends within working life. We want to continue to be the most desirable
partner for companies, and we are investing in the renewal of our services
through a dedicated, multi-year program in which we improve the effectiveness,
cost-effectiveness, and transparency of our services from the corporate
customers' point of view. Medical leadership in occupational health will
continue to be at the core of our services, but we see that technology can
significantly improve the overall customer experience for all types of
customers. We will share more about our technology investments in this area in
the coming months.
In addition to public health care and a developed occupational health and
insurance market, we still need new solutions in Finland to secure access to
care. The freedom of choice pilot for people aged 65 and over, which will be
launched in the autumn, is a socially significant initiative that, if
successful, will improve the availability of health services, strengthen freedom
of choice, and lighten the burden on public health care. In the freedom of
choice pilot, people aged 65 and over can visit a private general practitioner
of their choice participating in the pilot at the price of the public health
care client fee. We will open up our entire extensive network of clinics to the
freedom of choice pilot and invest in the provision of these services. We expect
the pilot to bring significant new volumes to the Healthcare Services from
September 2025 onwards.
When it comes to health, smooth access to treatment and high-quality, effective
care are everything. Satisfied customers who feel that they are getting the help
and care they need are the foundation of everything we do. At Terveystalo, we
focus on health so that our customers can focus on other important things in
life.
Meaningful matters,
Ville Iho
Guidance for 2025
Terveystalo clarifies the structure of its guidance and now provides a range for
adjusted EBIT in euros instead of revenue and adjusted EBIT margin.
Terveystalo expects its full-year 2025 adjusted EBIT to be EUR 155-165 million
(2024: EUR 140.5 million).
The estimates are based on a stable demand environment, employment levels, and
typical morbidity rates. The estimates account for a decrease of approximately
EUR 30 million in revenue within the Portfolio Businesses segment's outsourcing
operations due to the ending of contracts. Profitability is expected to
strengthen in all business segments. The estimates do not account for
significant acquisitions or divestments.
Guidance for 2025 on 25 April 2025
Terveystalo has updated the structure of the guidance and communicates
expectations on revenue and adjusted EBIT margin (previously revenue and
adjusted EBITA margin).
Terveystalo expects its full-year 2025 revenue to grow (2024: EUR 1,340 million)
and adjusted EBIT to be 10.7-11.8 percent of revenue (2024: 10.5 percent).
The estimates are based on a stable demand environment, employment levels, and
typical morbidity rates. The estimates account for a decrease of approximately
EUR 25 million in revenue within the Portfolio Businesses segment's outsourcing
operations due to the ending of contracts. Profitability is expected to
strengthen in all business segments. The estimates do not account for
significant acquisitions or divestments.
Medium term financial targets
Profitable growth:
· EPS to grow on average by 10 percent p.a.
· We expect faster earnings per share growth in 2025, as fewer items affecting
comparability are expected.
Moderate leverage ratio:
· Net debt to EBITDA not to exceed 2.5x
· Indebtedness may temporarily surpass the target level, particularly in
conjunction with acquisitions.
Attractive dividends:
· At least 80 percent of net result to be distributed as dividends
· The dividend proposal must consider the company's long-term potential and
financial status.
Key figures
[][][][][][][][][][][][][][][][][][]
MEUR unless stated 4-6/2025 4-6/2024 Change, 1-6/2025 1-6/2024 Change,
2024
otherwise % %
Revenue 321.5 340.1 -5.5 668.5 690.4 -3.2
1,340.0
Adjusted EBITA * 42.5 42.5 0.0 96.2 89.7 7.3
171.0
[1)]
Adjusted EBITA, % 13.2 12.5 - 14.4 13.0 -
12.8
* [1)]
EBITA [1)] 39.2 32.1 22.2 91.5 75.1 21.9
147.6
EBITA, % [1)] 12.2 9.4 - 13.7 10.9 -
11.0
Adjusted operating 36.7 34.9 5.1 84.5 75.1 12.6
140.5
profit
(EBIT) * [1)]
Adjusted operating 11.4 10.3 - 12.6 10.9 -
10.5
profit
(EBIT), % * [1)]
Operating profit 33.4 24.6 36.2 79.8 60.3 32.5
116.1
(EBIT)
Operating profit 10.4 7.2 - 11.9 8.7 -
8.7
(EBIT), %
Return on equity - - - 16.3 -4.5 -
13.5
(ROE) (LTM),
% [1)]
Equity ratio, % - - - 39.0 36.9 -
39.4
[1) ]
Earnings per 0.18 0.11 55.1 0.44 0.30 46.5
0.57
share, EUR
Weighted average 126,655 126,605 - 126,638 126,605 -
126,597
number of
shares
outstanding, in
thousands
Net debt [1)] - - - 519.4 569.8 -8.8
504.8
Gearing, % [1)] - - - 95.3 110.8 -
92.1
Net debt/EBITDA - - - 2.2 2.8 -
2.3
(LTM) [1)]
Net debt/Adjusted - - - 2.1 2.5 -
2.1
EBITDA
(LTM) * [1)]
Average personnel, - - - 5,619 5,956 -5.7
5,841
FTE[2)]
Non-employees (end - - - 6,016 6,020 -0.1
6,015
of
period)[3)]
Sustainability
PEI-index, %[4)] 70.4 70.0 0.6
69.2
Net Promoter Score 86.8 86.4 0.5
87.7
(NPS),
appointments
Net Promoter Score 95.4 95.2 0.2
96.2
(NPS),
hospitals
Engagement 4.2 4.2 2.4
4.2
index[5)]
* Adjustments are
material
items outside the
ordinary
course of business
and these
relate to
acquisition
-related
expenses,
restructuring
-related expenses,
gains and
losses on sale of
assets
(net), impairment
losses,
strategic projects
and other
items affecting
comparability.
1) Alternative
performance
measure.
Terveystalo
presents
alternative
performance
measures as
additional
information to
financial
measures defined
in IFRS.
Those are
performance
measures that the
company
monitors
internally and
they
provide
management,
investors,
securities
analysts and other
parties
significant
additional
information
related to the
company's results
of
operations,
financial
position and cash
flows.
These should not
be
considered in
isolation or as
a substitute to
the measures
under IFRS.
2)[ ]2025 does not
include
Recuror Oy,
Veikkolan
hammaslääkäriasema
Oy,
Medimar
Scandinavia Ab and
Cityläkarna
Mariehamn Ab.
Financial year
2024 does not
include Medimar
Scandinavia
Ab and the
companies acquired
during 2024 in
Finland (SRK
Group Oy, Suomen
Radiologikeskus
Oy, iRad Oy
and Kajaanin
Radiologikeskus
Oy and Cityläkarna
Mariehamn
Ab).
3)[ ]Financial
year 2024 does
not include the
companies
acquired during
2024 in
Finland (SRK Group
Oy, Suomen
Radiologikeskus
Oy, iRad Oy
and Kajaanin
Radiologikeskus
Oy and Cityläkarna
Mariehamn
Ab).
4) PEI index
(Patient
Enablement
Instrument) is
used to measure
whether the
patient feels that
he is
coping with his
symptoms or
illness much
better, better,
as before, or
worse after the
reception. The
scale is 1-4.
The PEI index is
calculated
by taking the
percentage of
patients who felt
they are
able to cope with
their
health condition
better or
much better and
comparing it
to the total
number of
respondents.
5) The engagement
index for
Terveystalo
professionals is
based on four
questions from
Terveystalo's
annual
professional
survey. The
results are used
to calculate
the index value,
i.e. the
average of the
results. The
questions concern
supervisory
work, the
preconditions for
success at work,
work
communities and
commitment.
The index is
expressed on a
scale of 1-5.
Result briefing
Terveystalo will arrange a result webcast and conference call in English on 17
July 2025, starting at 10:30 EEST. You can watch the webcast online at:
https://terveystalo.events.inderes.com/q2-2025
Conference call:
You can access the teleconference by registering on the link below. After the
registration you will be provided phone numbers and a conference ID to access
the conference. https://palvelu.flik.fi/teleconference/?id=50051649
If you wish to ask a question, please, dial *5 on your telephone keypad to enter
the queue.
Helsinki, 16 July 2025
Terveystalo Plc
Board of Directors
For further information, please contact:
CFO Juuso Pajunen
Tel. +358 40 584 9722
Kati Kaksonen, Vice President, Investor Relations & Sustainability
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
Distribution:
Nasdaq Helsinki Oy
Main media
www.terveystalo.com
Terveystalo in brief
Terveystalo is the largest private healthcare service provider in Finland in
terms of revenue and one of the leading occupational health providers in Finland
and Sweden. We aim to create fluent, caring, and effective healthcare of the
future. We offer comprehensive primary care, specialized care, and well-being
services for corporates, private individuals, and public sector customers. Our
digital services are accessible 24/7. We also offer our services in
approximately 360 clinics, including 18 hospitals in Finland. In Sweden we offer
occupational health services in approximately 140 units. Terveystalo is listed
on the Helsinki Stock Exchange.
In 2024, Terveystalo served approximately 1.2 million individual customers in
Finland, with around 7.6 million customer appointments. Terveystalo employs
approximately 15,000 healthcare and other professionals. www.terveystalo.com