Enento Group (ENENTO) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales declined 2.9% year-over-year, mainly due to weak Swedish consumer credit demand, while Finland, Norway, and Denmark showed positive development.

• Adjusted EBITDA margin improved to 36.7%, supported by efficiency measures, with over 90% of the €10 million program target achieved.

• New services contributed 15.3% of Q2 net sales, reflecting innovation in compliance and open banking.

• Customer satisfaction remained high, with an NPS of 36 among strategic and large customers.

• IT infrastructure consolidation to a unified Nordic platform is underway to enhance efficiency.

Financial highlights

• Q2 2024 net sales: €38.5 million (down 2.9% year-over-year at comparable FX rates).

• Adjusted EBITDA: €14.1 million (down 2.5–2.6% year-over-year); margin improved to 36.7%.

• Adjusted EBIT: €10.9 million (down 7.3–7.5% year-over-year).

• Free cash flow Q2: €6.1 million (up from €5.9 million in Q2 2023); H1: €12.9 million.

• Net debt to adjusted EBITDA: 2.6x at end of Q2/H1; cash position €11.1 million; €30 million credit facility unused.

Outlook and guidance

• Full-year 2024 revenue is expected to decline compared to 2023 at comparable FX rates, with H2 revenue decline not exceeding H1's 4%.

• Swedish consumer credit market is expected to stabilize in H2 2024.

• Cost control and efficiency remain priorities, with increased investments in growth and marketing planned for H2.