CEO's review

The Group’s profitability strengthened significantly during the second quarter. Comparable operating result amounted to EUR 0.7 million, an improvement of EUR 0.6 million relative to the comparison period. The improvement in profitability was driven by the determined renewal of the business, operational efficiency measures, and cost adjustments implemented across both segments.

The Group’s revenue for the review period amounted to EUR 11.0 million, which was EUR 1.1 million lower than in the comparison period. Revenue development differed between the segments. The Utilities segment maintained moderate growth, while the Retail & Commerce segment’s revenue continued to decline amid a tough market.

The Retail & Commerce segment’s revenue amounted to EUR 7.9 million, a decrease of EUR 1.3 million relative to the comparison period. The segment’s comparable operating result amounted to EUR 0.6 million and remained at a good level relative to the decline in revenue. I consider this a defensive win. Expectations for the remainder of the year are supported by a more agile organization, a lighter cost base, and the evolving offering.

The Utilities segment continued its strong performance during the review period. Revenue amounted to EUR 3.1 million, an increase of EUR 0.1 million relative to the comparison period. The comparable operating result amounted to EUR 0.0 million, an improvement of EUR 0.7 million year-on-year. Improved software quality, the launch of new software products, and a more efficient organization enabled an exceptionally big improvement in profitability. A solid foundation for the systematic improvement of profitability has now been established, and this work will continue.

The operating environment for the Retail & Commerce segment remains tough, and customer demand is expected to remain weak in the near future as well. The Utilities segment’s outlook remains moderate: while market consolidation is reducing the number of customers, regulatory developments, IT modernization, and investments related to the energy transition continue to support demand for technology and consulting services.

Solteq has announced that it is considering the possibility of commencing a written procedure in the near future to extend the final maturity date of the Notes, which are due on October 1, 2026. If a written procedure is commenced, the Company will announce this and prepare a proposal for the written procedure, including the proposed amendments to the terms and conditions of the Notes.

CEO Aarne Aktan