Tessin Nordic (TESSIN) Q4 2024 earnings summary

Executive summary

• 2024 marked another challenging year with a 40% drop in net revenue to 24.5 MSEK, driven by a tough real estate financing market and lower loan volumes.

• The company continued cost control and restructuring, aiming for a return to growth and profitability in 2025.

• Tessin secured 600 MSEK in institutional capital from Pollen Street Capital and completed several capital raises to support operations.

• The CEO emphasized efficiency, visibility, and leveraging prior restructuring as keys to future success.

Financial highlights

• Net revenue fell to 24.5 MSEK from 40.6 MSEK year-over-year, a 40% decrease.

• Operating income (EBIT) was -31.0 MSEK, down from -15.3 MSEK the previous year.

• Net loss widened to -36.3 MSEK from -15.4 MSEK year-over-year, mainly due to lower loan volumes and one-time costs related to the Pollen Street agreement.

• Cash flow from operations was -9.3 MSEK, with cash and equivalents at 22.5 MSEK at year-end, down from 36.9 MSEK.

• No dividend proposed for 2024.

Outlook and guidance

• 2025 forecast includes a planned rights issue of approximately 10 MSEK in two tranches and the addition of a new institutional capital source.

• The company expects continued negative cash flow for most of 2025 but sees potential for positive operating results if new funding is secured.

• Management is focused on efficiency, visibility, and leveraging digital platform scalability to drive future growth.