Enento Q2'26: Laaja-alaista kasvua

Hi.

First, about growth. It's great that all segments, all countries grew, and Sweden the best, and that is of course great because in previous years we had challenges with revenue growth in Sweden and the structural market change, and now this looks much more stable. And the second great thing is that profit grew clearly faster than revenue, and this is a good direction, now we have the second consecutive quarter where every segment is growing.

Well, one thing is the so-called sales mix, which practically means that we have services where our data cost is practically fixed, and then as soon as revenue rises, it has a very high margin, and that shows in the profit. So that's one thing. The second is of course the various efficiency measures that have been done in many areas, and perhaps one key one that is reported every quarter is this so-called SM transformation in Sweden, and it is progressing according to plan and it is promising.

Yeah, well, of course it is also a cost-saving matter, and it's good to understand that quite a lot is also done as a kind of competence change, meaning hiring into new different roles, in order to enable new growth. But if we talk about the organizational change more broadly, a very significant part was non-cost, i.e., generally this clarification, and the old organization was quite complex for a company of this size, and getting clearer responsibilities, that is the most important thing, and that has then enabled us quite a few different things, like how sales is led and organized differently. We had operations, there were many different teams in each country, and they have now been combined, so then for example, doing things in a new way, like with AI, is much easier when you have a larger team that can rethink the processes end-to-end.

Well, it's always tough, and unfortunately such things inevitably take time, even due to the law, although nowadays in Finland it's fast, and we even got it done faster in Sweden than in Finland due to good cooperation with the staff and staff representatives. Now we are also starting to get positive feedback that when it's clearer, you know who is responsible for what and who to ask and who to talk to, so you can get things done.

E-Milera is an email marketing business, and it doesn't fit into our data-based business, and for that reason it had already been deprioritized in all internal resource allocation, for example product development was done more elsewhere, and so it's clear that such a business is in better hands with someone else for whom it is core business. Eivora, on the other hand, is the same thing the other way around. Our compliance focus area requires certain competence, and we had already been working together with Eivora for some time. So it was a familiar company, with whom we had built a certain part of our Swedish products, and it was in that sense an easy decision because we knew what we were buying.

Well, there is nothing currently under work, but of course, if we want to accelerate growth, if it requires some competence, expertise, in some cases maybe customer base, then why not, it really depends on which direction the strategy takes.

Yeah. Well, there are many new services built on publicly available data, and you read new news every day, often from areas close to us. And our goal is the same as many others: to use AI to process that data more efficiently and make it more valuable. But on the other hand, a significant part of our business is in regulated areas. This applies to both credit information and compliance business, where it is very clear what a bank can do and how. And secondly, if there is something wrong with the data, it can become quite expensive when making credit decisions based on it. For this reason, change in that area is slower even if the data were publicly available. But most of our data is data that only we have, and with it we can clearly show, for example, the predictability of a credit decision or credit risk, that it is better with our data than otherwise. And that is what our business is based on. So it's the data part, and then a lot happens in what you do with that data, i.e., analytics. And we've all probably tried analytics by now, like when you use ChatGPT or Claude or something, it analyzes quite well, but it still needs good data to produce correct results. Otherwise it guesses, and that's not good.

Yeah. Well, especially large banks, and then there are these smaller, very competent banks specialized in analytics, whose competitive advantage comes from good risk analysis, so they have that expertise. But the data they have is their own data. And many such banks that have built their own solution still buy from us because they have tested that when you get the whole market view from us, it brings more predictability and correctness to their decisions. So even if banks invest a lot in AI, in the best case it could mean they buy more from us if they learn to get more value from it.

No, no, none seen in that regard. Yes.

Well, one small example was of course this Eivora, and it was something that had been done for some time, and we just concluded that it's important and we need to keep that competence in-house. So yes, we have ongoing work where we are practically going through all products, because now the world is different than it was three months or six months ago, so we need to constantly look at what could be done differently. And then of course it has to be something that benefits the customer. So it's hard to specify it to a single area, because it's a bit across all areas.

Well, now we have made these decisions that lower our cost level, and the reason we didn't give such guidance earlier was precisely because we didn't know how the sales mix would go, and now the profit improvement is significantly faster than revenue. It is based on the fact that especially the highest margin products have been sold relatively more, and even if that changes in the second half, for which there is no evidence, but even if it changes, we still believe this guidance holds.

Well, in Finland you can say that what is visible in the economy is reflected in our numbers. On the credit side, the corporate side has been doing better, which fits well with the idea that companies invest first and consumers follow. And then on the consumer side, related to that, in the real estate business, volumes have not been as good. On the other hand, in real estate we have had new products that have supported growth. But hopefully, even though consumer confidence has clearly improved, it's good to remember that it is still clearly below long-term averages, so we are still in negative territory in that sense. Hopefully the good trend continues, and then it will show in our numbers as well.

CCD2 does two things. It specifies how a credit decision must be made and what kind of data needs to be analyzed for it. And then it brings certain players under more bank-like regulation, which previously were regulated more lightly. So when you put these two together, new players emerge, especially in the buy now pay later world, who have to make decisions in a new, more precise way. And for that reason, it is an opportunity and it grows the market. But the reason it is also potentially a risk is that we don't really know exactly how it will be applied, and even here in the Nordics, although it's a Europe-wide regulation, there are still different views on what it means at the detail level, so it's hard to predict. And this regulation will come into force, but there is still time to implement after that. So at this stage, we are looking at how well we can win that business, but it is not expected to affect this year's revenue much.

Thank you. Thank you.