CEO's review

The company's third quarter brought in, as expected, strong improvement in profitability but the revenue development was weaker than expected. The efficiency measures in the previous quarters yielded a comparable operating result of EUR 0.6 million, which was EUR 1.4 million better than in the comparison period. However, the comparable revenue in the review period, EUR 11.4 million, decreased by 6.5 percent relative to the comparison period. A slow recovery in customer demand caused a weaker revenue development than expected.

The Retail & Commerce segment improved its profitability well, but the revenue development was declining. This was driven by postponed decision-making in several key customer acquisition opportunities, resulting in a shortfall in anticipated revenue. During the review period, comparable revenue was EUR 8.5 million, down by 7.5 percent relative to the comparison period. The comparable operating result was EUR 0.7 million, up by 177 percent relative to the comparison period. The improvement was EUR 0.5 million.

The Utilities segment performed as expected and is on the verge of achieving profitable growth. The turnaround in profitability progressed well: the segment’s comparable operating profit was EUR -0.1 million, improving by EUR 1.0 million relative to the comparison period. The enhanced profitability results from the improved quality of products and efficiency of operations.

The company's financing was agreed during the review period for the next 24 months. The maturity date of the EUR 23 million notes was extended until 1.10.2026, and the coupon rate was increased from 6.0 percent to 10.0 percent.

The revenue downturn is caused by subdued customer demand, particularly in Retail & Commerce, leading to a more cautious outlook for the remainder of the financial year. The long-term market outlook for the Retail & Commerce segment is expected to remain moderate, and demand to recover as the markets stabilize. The long-term market outlook for the Utilities segment is expected to remain good and provide opportunities for profitable growth.

CEO Aarne Aktan