CEO's review

The positive profitability trend continued in the second quarter. The comparable operating result was EUR 0.1 million, which improved by EUR 0.1 million relative to the comparison period. This was the sixth consecutive quarter in which a comparable operating result improved year-on-year. However, profitability development was two-fold: The Retail & Commerce segment showed a good improvement in profitability, whereas the Utilities segment’s profitability development fell short of expectations, mainly due to losses in the consulting business. The Group’s comparable revenue was EUR 12.1 million, which diminished by EUR 0.7 million relative to the comparison period.

The Retail & Commerce segment’s performance aligned with the company’s expectations. The segment’s comparable revenue was EUR 9.1 million, decreasing by EUR 0.4 million year-on-year. The revenue was affected by a market with continued cautiousness in customer demand and delays in investment decisions. In contrast, the segment’s profitability was good: The comparable operating result was EUR 0.7 million, increasing by EUR 0.4 million year-on-year. During the review period, the company’s Board of Directors appointed Petteri Ahonen as Executive Vice President of the segment and a member of the Group Executive Team. Ahonen assumed his duties in August.

During the review period, the Utilities segment’s performance was particularly hampered by reduced customer invoicing rates within the consulting business. In contrast, the software business developed as expected. The segment’s comparable operating result was EUR -0.6 million, a decrease of EUR 0.3 million relative to the comparison period. The revenue was EUR 3.0 million, decreasing by EUR 0.3 million year-on-year. During the review period, Jesper Kaysen assumed the role of Executive Vice President of Utilities and became a member of the Group Executive Team.

We commence the autumn season with clarity in objectives and next steps. We expect our financial performance to strengthen in the second half of the financial year. Despite the challenging operating environment and the state of the global economy, the outlook for the Retail & Commerce segment remains moderate. The market outlook for the Utilities segment is stable, and the Nordic market offers growth opportunities for both the software and consulting businesses.

CEO Aarne Aktan