KPY (KPYOSK) H2 2024 earnings summary

Executive summary

• 2024 was a year of significant restructuring, including the sale of Enfo shares, acquisition of Epical, and divestment of Voimatel's electricity network business, strengthening the group's financial and strategic position.

• Novapolis maintained strong profitability and high occupancy, while Voimatel refocused on profitable data network operations.

• Epical underwent major restructuring, closing loss-making Swedish units, with positive effects expected in future periods.

• The board proposes a distribution of €0.09 per share, totaling about €2 million, reflecting improved financial standing.

Financial highlights

• Revenue was €224.5M (down 17% year-over-year), EBITDA €42.2M, operating profit €32.4M, and adjusted operating profit €2.5M.

• Net profit was €26.1M, with adjusted net profit at -€3.0M; EPS was €1.18.

• Equity ratio improved to 46.5% (from 33.9%), net gearing decreased to 58.5% (from 89.4%).

• Significant one-time gains from corporate transactions totaled €30.0M.

• Average staff was 1,559 (down from 1,822).

Outlook and guidance

• All subsidiaries are expected to be profitable in 2025, with continued improvement in portfolio companies.

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

• Voimatel and Epical are forecasted to be profitable in 2025, with Epical's turnaround dependent on sales success.

• The group aims to distribute at least 20% of net returns as dividends from 2025, targeting 60% within five years.