Enento Group (ENENTO) Pre-Silent Call summary

Executive summary

• Market environment in Q1 2025 remains stable with low economic growth and moderate inflation; no significant changes in consumer loan demand or confidence, especially in Finland and Sweden.

• Swedish government measures to prevent overindebtedness began in March 2025, with ongoing discussions about a banking license for loan brokers.

• Strategic focus on cost efficiencies and commercialization of new services, with ongoing transformation in Sweden to improve margins.

Trading performance and revenue trends

• Group revenue is flattish in Q1, with growth in Business Insight (Finland, Norway, Denmark) offset by continued decline in Consumer Insight.

• Real estate and compliance services show strong growth, while Consumer Insight sales remain pressured by low consumer credit volumes.

• New customer contracts signed in Q4 are contributing to Q1 revenue, though impact is still building.

• Real estate offering in Finland continues double-digit growth, driven by new services, despite mixed housing market signals.

Profitability and margins

• Margins are under pressure due to high fixed costs and declining high-margin Consumer Insight business in both Finland and Sweden.

• Data acquisition costs in Finland increased due to government price hikes in 2024, impacting margins despite corresponding price increases to customers.

• Sales mix shift toward basic services in Finland further weakens profitability.

• Infrastructure consolidation project is causing short-term negative impact on development activities but targets significant savings in H2 and beyond.

• One-off costs related to infrastructure consolidation expected to continue at Q4 levels through H1.