Inderes Oyj

Company release 13 August, 2024 8:00 EEST

Inderes Oyj Half-year report 1 January–30 June 2024: Revenue in the second quarter increased and EBITA improved significantly

Key events January–June 2024

• Revenue increased by 8.0% to 10.0 MEUR (9.2)
• Recurring revenue grew by 4.6% to 5.5 MEUR (5.2), while recurring revenue accounted for 54.8% (56.6%) of revenue
• Project revenue grew by 12.5% and project revenue was 4.5 MEUR (4.0)
• Sweden’s revenue was 2.1 MEUR (1.9) and its share of total revenue was 21.0% (20.3%)
• EBITA totaled 1.1 MEUR (0.9) and the EBITA margin was 11.2% (9.7%)
• Adjusted EPS was EUR 0.50 (0.34)
• Inderes provided services to 432 (403) listed companies in the past 12 months
• The number of active members in the Inderes Community was 74,000 (69,000) at the end of the period

Key events April–June 2024

• Revenue increased by 16.6% to 5.0 MEUR (4.3)
• Recurring revenue grew by 5.5% to 2.7 MEUR (2.6), while recurring revenue accounted for 54.3% (59.9%) of revenue
• Project revenue increased by 33.1% to 2.3 MEUR (1.7)
• Sweden's revenue was 1.1 MEUR (0.9), the revenue accounted for 21.2% (21.6%) of total revenues
• EBITA totaled 0.6 MEUR (0.3) and the EBITA margin was 11.0% (5.9%)

Key figures

*Adjusted for consolidated goodwill amortization and the associated company's (HC Andersen Capital) consolidated goodwill amortization

Outlook

Guidance for 2024

• Revenue will grow from the previous year (17.2 MEUR)
• Relative profitability measured by EBITA % improves from the previous year (10.6%)

Background for the outlook

• The target market for main product areas is not expected to grow in Finland in 2024
• Revenue will increase thanks to new products and opening of new markets
• The company continues to invest in accelerating the growth of the international business

CEO Mikael Rautanen:

Revenue in the first half of the year grew by 8%, EBITA by 25% and operating cash flow after investments by 35%. Key financial indicators developed in the right direction in the first half of the year and in particular in the second quarter. The strategic investments in new products we have made during the past years are starting to be reflected in organic growth. During the first half of the year, the AGM product and IR Software showed strong growth.

In our new strategy published in spring 2023, we focus on four selected main products (Equity Research, IR Events, Annual General Meetings [AGMs] and IR Software) and three selected geographic markets (Sweden, Finland and Denmark) during the 2023-2027 period. By concentrating purchases of these solutions to Inderes, customers achieve better service for owners, cost savings and efficiency.

In terms of the progress of the strategy, I am particularly pleased with the development of the software business. We see good progress in IR software, AGM software and the Videosync platform. Software revenue grew very strongly in the first half of the year. The software business, which is still at a very early development stage, plays a significant role in Inderes’ long-term value creation.

Project sales in the event business show signs of a pick-up after a long period of weak market demand. This is based on the demand for AGMs, Capital Market Days and other hybrid event productions and our strengthened market position. In the Equity Research business, the contract portfolio is growing slightly despite a shrinking market. New contracts have compensated for the customer churn resulting from takeover bids.

The work to internationalize Inderes continues. Business in Sweden is growing, but our long-term ambitions and potential are far above the current pace. In Denmark, our partner HC Andersen Capital's (HCA) business turned to good growth in the first half of 2024. In June, HCA published its first commissioned research using the Inderes research model.

Recently, there has been a debate in Finland about how well our stock exchange works as a funding channel for growth companies. In weak market conditions, access to finance tightens in all channels, including the stock exchange. However, numerous examples from the past decade show that listing can serve as an excellent tool for boosting the growth of a high-quality company. At the same time, listed companies must be able to meet the capital markets' growing expectations on reporting and transparency with limited investor relations resources. Inderes’ product offering solves precisely this problem.

Webcast

Inderes will host an earnings call today in Finnish at 9:30 EEST. At the event, CEO Mikael Rautanen will present the main points of the report, as well as the progress of the company’s strategy, and CFO Mikko Wartiovaara will go through the financial figures for the review period.

Mikael Rautanen will present the main points of the report in English in an earnings call hosted by HC Andersen Capital on August 15, 2024, at 13:00 EEST.

You can follow the Finnish webcast starting at 9:30 EEST on August 13, 2024, at https://inderes.videosync.fi/inderes-q2-report-2024/.

You can follow the English webcast starting at 13:00 EEST on August 15, 2024, at https://hca.videosync.fi/2024-08-15-inderes/register.

This release is a summary of Inderes Oyj's 2024 half-year report. The full half-year report is attached to this company release as a pdf file and is also available on the company's website at www.group.inderes.fi/en.

Contact Information

Mikael Rautanen
CEO
mikael.rautanen@inderes.fi
+358 50 346 0321

Certified adviser:

Sisu Partners Oy

Jori-Pekka Rautalahti
jori-pekka.rautalahti@sisupartners.com
puh. +358 50 382 9323

Juha Karttunen
juha.karttunen@sisupartners.com
puh. +358 40 555 4727

Inderes in brief

Inderes is a Nordic investor media connecting investors and listed companies. We provide in-depth equity research and investor relations solutions to help over 400 listed companies better serve the Nordic investor community. Inderes operates in Sweden, Finland, Denmark, and Norway and is listed on Nasdaq First North Growth Market.

Read more: http://www.group.inderes.fi/