Talenom (TNOM) Q2 2024 earnings summary

Executive summary

• H1 revenue rose 6.7% YoY to €68.0m; EBITDA increased 14.6% to €19.7m and EBIT rose 17.3% to €8.4m.

• Q2 revenue grew 4.5% YoY to €33.9m; EBITDA was €10.3m, EBIT €4.5m and net income €2.7m.

• Strategy execution focused on profitability, Swedish platform rollout and organic growth; over 90% of revenue is recurring.

Financial highlights

• H1 net income rose 11.2% YoY to €4.7m; basic and diluted EPS were €0.10 versus €0.09.

• H1 operating cash flow was €18.2m versus €14.9m; personnel costs were €39.8m, 58.5% of revenue versus 58.1%.

• Materials, services and other costs totaled €9.7m, 14.2% of revenue versus 15.4%.

• H1 revenue growth reflected acquisitions, mainly in Spain; weak conditions in Finland and Sweden reduced transaction volumes and organic growth.

Outlook and guidance

• FY2024 guidance was unchanged: revenue €130–140m, EBITDA €34–40m and operating profit/EBIT €14–17m.

• Nordic accounting-market growth is expected to slow in 2024, while other operating markets are expected to grow; Nordic demand is expected to remain stable.

• Guidance includes potential acquisitions; activity is expected below 2023 levels and focused more on strategically significant deals.

• Swedish platform implementation is expected to weigh on 2024 profitability; adoption is expected to improve efficiency, profitability and organic growth over time.