ENENTO GROUP PLC, STOCK EXCHANGE RELEASE 21 JULY 2021 AT 12.00 EEST
Enento Group’s Half Year Financial Report 1.1. – 30.6.2021: Strong second quarter supporting Enento’s growth
SUMMARY
April - June 2021 in brief
- Net sales amounted to EUR 42,1 million (EUR 36,7 million), an increase of 14,7 % (at comparable exchange rates an increase of 11,4 %).
- Adjusted EBITDA excluding items affecting comparability was EUR 16,1 million (EUR 12,5 million), an increase of 29,0 % (at comparable exchange rates an increase of 26,3 %).
- Adjusted EBIT excluding items affecting comparability and amortisation from fair value adjustments related to acquisitions was EUR 13,5 million (EUR 10,2 million), an increase of 32,4 %.
- Operating profit (EBIT) was EUR 10,1 million (EUR 5,4 million). Operating profit included items affecting comparability of EUR 3,4 million (EUR 4,8 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 expense and reversal of excess redundancy provisions.
- New products and services represented 7,4 % (4,9 %) of net sales.
- Free cash flow amounted to EUR 4,3 million (EUR 5,2 million). The effect of items affecting comparability on free cash flow was EUR -0,2 million (EUR -1,3 million).
- Earnings per share were EUR 0,32 (EUR 0,15).
- Comparable earnings per share were EUR 0,42 (EUR 0,25)1.
- Enento Group made a EUR 3,8 million investment in Goava Sales Intelligence AB.
- Enento Group upgraded its’ Net Sales guidance for 2021 on 8 July 2021.
- Jeanette Jäger starting as the new CEO for Enento Group on 1 January 2022.
January – June 2021 in brief
- Net sales amounted to EUR 81,8 million (EUR 74,4 million), an increase of 10,0 % (at comparable exchange rates an increase of 6,8 %).
- Adjusted EBITDA excluding items affecting comparability was EUR 30,0 million (EUR 24,9 million), an increase of 20,7 % (at comparable exchange rates an increase of 18,0 %).
- Adjusted EBIT excluding items affecting comparability and amortisation from fair value adjustments related to acquisitions was EUR 25,0 million (EUR 20,6 million), an increase of 21,1 %.
- Operating profit (EBIT) was EUR 18,6 million (EUR 12,5 million). Operating profit included items affecting comparability of EUR 6,4 million (EUR 8,1 million), mainly arising from amortisation from fair value adjustments of EUR 6,3 million (EUR 6,0 million) related to acquisitions as well as M&A related expenses, reversal of excess redundancy provisions and received insurance compensation.
- New products and services represented 7,2 % (4,6 %) of net sales.
- Free cash flow amounted to EUR 9,9 million (EUR 12,5 million). The effect of items affecting comparability on free cash flow was EUR -0,2 million (EUR -1,4 million).
- Earnings per share were EUR 0,58 (EUR 0,38).
- Comparable earnings per share were EUR 0,79 (EUR 0,58)1.
1 The comparable earnings per share does not contain amortisation from fair value adjustments related to acquisitions or their tax impact.
KEY FIGURES
| 1.4. – 30.6.2021 | 1.4. – 30.6.2020 | 1.1. – 30.6.2021 | 1.1. – 30.6.2020 | 1.1. – 31.12.2020 | |
| EUR million | |||||
| Net sales | 42,1 | 36,7 | 81,8 | 74,4 | 151,3 |
| Net sales growth, % | 14,7 | 3,3 | 10,0 | 6,1 | 3,7 |
| Operating profit (EBIT) | 10,1 | 5,4 | 18,6 | 12,5 | 27,8 |
| EBIT margin, % | 24,1 | 14,8 | 22,7 | 16,9 | 18,4 |
| Adjusted EBITDA | 16,1 | 12,5 | 30,0 | 24,9 | 54,0 |
| Adjusted EBITDA margin, % | 38,2 | 33,9 | 36,7 | 33,4 | 35,7 |
| Adjusted operating profit (EBIT) | 13,5 | 10,2 | 25,0 | 20,6 | 45,0 |
| Adjusted EBIT margin, % | 32,0 | 27,8 | 30,6 | 27,8 | 29,7 |
| New products and services of net sales, % | 7,4 | 4,9 | 7,2 | 4,6 | 5,6 |
| Free cash flow | 4,3 | 5,2 | 9,9 | 12,5 | 32,6 |
| Net debt to adjusted EBITDA, x | 2,7 | 3,0 | 2,7 | 3,0 | 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%), exceeding the mid-point of that 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 assumes that exchange rates remain approximately on the same level as in the first half of 2021.
JUKKA RUUSKA, CEO
Enento Group’s net sales continued to see strong growth – 11,4 % at comparable exchange rates – in the second quarter of the financial year 2021. During the first six months of the year, we launched 18 new services, with seven of these launches taking place in the second quarter. The development of volumes in consumer information services in the Swedish market and the demand for the launched new services provided the foundation for the growth of net sales. Positive signs predicting economic recovery as well as market recovery in all of our business areas are boosting the growth. Furthermore, thanks to our business model – which adapts to exceptional circumstances – and the quick, cost-conscious action we have taken, our business has adapted fairly well to the diverse impacts of the pandemic.
Enento Group’s net sales in the second quarter amounted to EUR 42,1 million, representing a year-on-year increase of 14,7 % (at comparable exchange rates 11,4 %). The Group’s adjusted EBITDA increased by 29,0 % (at comparable exchange rates 26,3 %) and amounted to EUR 16,1 million. Adjusted EBIT, excluding items affecting comparability, grew by 32,4 % (at comparable exchange rates 29,7 %) and amounted to EUR 13,5 million. Innovative service development and new services are key drivers of growth for Enento. In line with our goal, the share of net sales represented by new services continues to grow and was 7.4 % in the period under review. This was particularly attributable to the sales of the Nordic Growth Certificate launched in the Swedish market in the first quarter.
Net sales in the second quarter were higher than expected, which was largely due to the strong recovery of sales of consumer information services in Sweden. In addition, the Proff business has grown throughout the early part of 2021, and this growth continued in the period under review. The real estate information services of the Digital Processes business area saw continued strong growth in both markets, supported by strong market demand and successful service development. In the week of the Midsummer holiday, we acquired part of the Swedish company Goava Sales Intelligence AB with the option of acquiring all shares. The transaction strengthens Enento’s position in the emerging and fast-growing Sales Intelligence domain and accelerates our new service development based on unstructured and refined data.
The planning and development of the Nordic future platform, which is an extensive project for Enento Group, is progressing according to plan. The program has a strong project management team. Incorporating the service platform into the core of our business will enable the delivery of existing service solutions and new innovative services to our Nordic customers to provide business benefits for them. The aim of the Nordic future platform is to guarantee the best possible technical and qualitative customer experience for our customers.
NEWS CONFERENCE: WEBCAST AND CONFERENCE CALL
Enento Group will hold a webcast for analysts, investors and media in English on Wednesday, 21 July 2021 at 2.00 p.m. EEST where CEO Jukka Ruuska and CFO Elina Stråhlman will present the performance and events of the second quarter 2021.
You can follow the English webcast and conference call at:
https://cloud.webcast.fi/enento/2021_0721_enento_q2
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: +1 323-794-2095
United States, NY: +1 929-477-0630
The conference ID code: 584612
The presentation material will be available on the company’s investor website at 1.30 p.m. EEST and a recording of the webcast later during the day.
Helsinki, 21 July 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.