KPY (KPYOSK) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €109.3 million, down 8.2% year-over-year, but both reported and adjusted operating results improved from the prior year.

• Strategic focus remained on improving profitability in Voimatel and Enfo, while Novapolis maintained strong performance.

• Voimatel divested its electricity network business, refocusing on profitable data network operations.

• Enfo's IT services improved profitability, while Epical's consulting business reduced losses but remained unprofitable.

• Novapolis sustained high occupancy and profitability despite market challenges.

Financial highlights

• Revenue: €109.3m (vs. €119.1m), EBITDA: €5.0m (vs. €4.4m), operating result: -€0.2m (vs. -€1.5m).

• Adjusted operating result: -€0.6m (vs. -€1.5m); net result: -€3.5m (vs. -€5.3m); EPS: -€0.16 (vs. -€0.24).

• Net debt: €91.9m; net gearing: 92.7%; equity ratio: 33.9%.

• Novapolis: revenue €14.3m, EBITDA €7.1m, operating profit €4.9m, occupancy 95.2%.

• Voimatel: revenue €46.9m, operating loss -€2.4m; Enfo: revenue €49.2m, operating loss -€0.8m.

Outlook and guidance

• Focus for 2024 is on maintaining Novapolis' profitability and improving results in Enfo, Epical, and Voimatel.

• Novapolis expected to maintain profitability and dividend capacity, though occupancy may slightly decline.

• Voimatel's results will be impacted by weak Q1 electricity network business; cost adjustments ongoing.

• Enfo faces challenges in Swedish consulting; IT services outlook stable.

• Medium-term goal: distribute at least 20% of net returns as dividends from 2025, rising to 60% over five years.