Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Enento Group PLC (OHEL:ENENTO, Financial) maintained high customer satisfaction and did not lose any strategic or large customers to competitors in 2024.
- The company achieved over 5% growth in business insights in Finland, Norway, and Denmark in Q4 2024.
- Enento Group PLC launched several innovative services, including fraud prevention and open banking data, targeting growth in the Swedish market.
- The company completed its efficiency program, achieving a €10 million cost-saving target.
- Despite challenges, Enento Group PLC's free cash flow remained strong, demonstrating resilience in a challenging environment.
Negative Points
- Net sales declined by 2.6% in Q4 2024 due to muted demand for consumer credit information services in Sweden and Finland.
- The adjusted EBITDA margin decreased to 30.9%, impacted by a decline in consumer credit information net sales and higher data acquisition costs.
- The Swedish consumer credit market faces uncertainties due to new regulations, impacting financial performance in 2025.
- Enento Group PLC experienced a significant revenue decline in Sweden, losing almost €13 million over the past two years.
- The company faces regulatory headwinds in the Swedish consumer credit market, with new measures expected to slow recovery.
Q & A Highlights
Q: How do you see market share development over the past year or so? Have you lost share?
A: Jeanette Jager, CEO, stated that Enento Group has not lost market share. The decline in volumes is attributed to macroeconomic headwinds and structural changes in the consumer credit market, particularly in Sweden. Elina Strahlman, CFO, added that they have not lost any customers to competition and have been gaining new customers and market share in SME services in Finland, Norway, and Denmark.
Q: Why hasn't Enento performed better in Sweden compared to some competitors?
A: Jeanette Jager explained that the decline in Sweden is due to volume changes rather than losing customers. The company is taking actions to increase margins in the mid-term, which may result in short-term revenue decreases. New services are being introduced, and while these are gaining traction, they are not yet significantly impacting total numbers. Elina Strahlman noted that the decline is mainly due to structural changes in the broker segment, not competition.
Q: How do you aim to grow in 2025, and what is the outlook for the Swedish market?
A: Jeanette Jager mentioned that new regulations in Sweden might dilute expected macroeconomic recovery. However, Enento is focusing on developing new services, such as open banking and compliance, to diversify its offerings. The company is investing in areas that customers see as future needs, aiming to become a more relevant player in the market.
Q: Are you expecting further inflation in data acquisition costs?
A: Elina Strahlman indicated that the Finnish government raised data prices twice in 2024, but no further significant hikes are expected based on current dialogues. However, these costs are not entirely within the company's control.
Q: What is happening with Goaba, and are there plans for further acquisitions?
A: Elina Strahlman explained that Goaba operates in a competitive B2B sales and marketing services market, which has been challenging due to the macroeconomic situation. While Goaba has good technical capabilities, Enento is not planning further investments at this time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
