CEO's review

The first quarter was moderate. While revenue declined, profitability continued to improve. This was the fifth consecutive quarter in which a comparable operating result improved year-on-year and the fourth in a row with a positive operating result. Performance was in line with our expectations, and the improved profitability reflects the impact of the efficiency and cost-saving measures in 2024.

The Group's comparable revenue for the review period was EUR 12.1 million, a decrease of EUR 0.9 million relative to the comparison period. The comparable operating result amounted to EUR 0.1 million, marking an improvement of EUR 0.4 million year-on-year. This was a significant achievement in a market characterized by cautious customer demand, postponed investment decisions, and global economic turmoil.

The comparable revenue for the Retail & Commerce segment was EUR 9.2 million, a decrease of EUR 0.7 million from the comparison period. However, due to successful efficiency and cost-saving initiatives, the segment's comparable operating result reached EUR 0.7 million, increasing by EUR 0.4 million year-on-year.

In the Utilities segment, revenue totaled EUR 2.9 million, down by EUR 0.3 million from the comparison period. The decline in revenue was primarily driven by weak demand in the consulting business. On the other hand, the share of SaaS-based fees in the software business increased, and recurring services accounted for over 50% of the segment’s revenue. The segment’s comparable operating result was EUR -0.6 million, an improvement of EUR 48 thousand year-on-year. The segment’s performance is expected to improve over the remainder of the year.

During the review period, the company cancelled notes, repurchased between 2023 and 2025, worth EUR 4.3 million. These cancellations strengthen the company's financial position and reduce interest expenses. Following the cancellations, the outstanding amount of the bond is EUR 18.7 million.

Despite the challenging operating environment and global economic conditions, the outlook for the Retail & Commerce segment remains moderate. The market outlook for the Utilities segment is stable, with the Nordic region offering growth opportunities for both software and expert services businesses. Overall, we remain confident in our ability to consistently improve results during the current financial year.

CEO Aarne Aktan