Inside information: Enento Group updates its 2023 net sales guidance (decline of 0-1,5%, previous growth of 0-5%), keeps adjusted EBITDA margin guidance unchanged

ENENTO GROUP PLC, INSIDE INFORMATION 9 OCTOBER 2023 AT 7.00 P.M. EEST

Inside information: Enento Group updates its 2023 net sales guidance (decline of 0-1,5%, previous growth of 0-5%), keeps adjusted EBITDA margin guidance unchanged

Enento Group adjusts its 2023 guidance for net sales development due to weaker than expected performance in the Consumer Insight business area during the third quarter. Enento now estimates its full-year 2023 net sales to decline between 0% – 1,5% (previous growth of 0% – 5%), excluding the impact from the discontinued Tambur service, at comparable exchange rates to 2022.

The adjusted EBITDA margin guidance for the full year is unchanged and the company remains committed to the long-term financial targets of the company announced on 20 July 2023. Enento's resilient business mix and attention to cost efficiency continue to be a foundation for healthy financial performance now and going forward.

The challenging operating environment and continuously deteriorating development of consumer lending volumes have negatively affected the revenue development in the second half of 2023. Consumer sentiment and related loan volume development continue to be significantly weaker than expected, especially in the Swedish market. This is anticipated to further impact the demand for Enento’s consumer credit information services and, consequently, net sales development during the remaining months of 2023. Currently, there are no clear indications of market conditions significantly improving in the last quarter of the year. The positive development in the Business Insight business area has continued but not to the level that would offset the decline witnessed and anticipated in the Consumer Insight business area.

Updated outlook for 2023:

The general macroeconomic environment remains uncertain and unpredictable and is expected to impact negatively on the growth outlook of the Group. The weakening demand for consumer credit information services, direct-to-consumer services and services used for sales and marketing purposes is expected to negatively impact the net sales development. Enento expects increased demand for risk management and compliance services, which together with the introduction of new services to partially offset the decline. The discontinuance of the Swedish housing transaction service Tambur from second quarter onwards is estimated to have a negative impact up to -1.5% of the Group’s net sales at comparable exchange rates.

Enento expects cost inflation to increasingly burden the profitability level of the Group and is mitigating the impact by the efficiency program and temporary efficiency measures.

Updated guidance for 2023:

Net Sales: Enento Group expects net sales in 2023 to decline between 0% – 1,5% excluding the impact from the discontinued Tambur service at comparable exchange rates as compared to 2022.

Adjusted EBITDA: Enento Group expects its adjusted EBITDA margin to be in the range of 36,0% – 37,0%.

Previous outlook for 2023 (published on 13 February 2023):

The general macroeconomic environment remains uncertain and unpredictable and is expected to impact negatively on the growth outlook of the Group. The weakening demand for sales and marketing and direct-to-consumer services is expected to negatively impact the net sales development. Enento expects increased demand for risk management and compliance services, which together with the introduction of new services will offset the decline. The discontinuance of the Swedish housing transaction service Tambur from second quarter onwards is estimated to have a negative impact up to -1.5% of the Group’s net sales at comparable exchange rates.

Enento expects cost inflation to increasingly burden the profitability level of the Group and is mitigating the impact by the introduction of the efficiency program.

Previous guidance for 2023 (published on 13 February 2023):

Net Sales: Enento Group expects net sales in 2023 to grow between 0% – 5% excluding the impact from the discontinued Tambur service at comparable exchange rates as compared to 2022.

Adjusted EBITDA: Enento Group expects its adjusted EBITDA margin to be in the range of 36,0% – 37,0%.

Enento will publish its Interim Report for January–September 2023 on 27 October 2023.

ENENTO GROUP PLC

For further information:

Jeanette Jäger

CEO

tel. 0

Elina Stråhlman

CFO

tel. +358 10 270 7578

Distribution:

Nasdaq Helsinki

Major media

enento.com/investors

Enento Group is a Nordic knowledge company powering society with intelligence since 1905. We collect and transform data into intelligence and knowledge used in interactions between people, businesses, and societies. Our digital services, data and information empower companies and consumers in their daily digital decision processes, as well as financial processes and sales and marketing processes. Approximately 393 people are working for Enento Group in Finland, Norway, Sweden, and Denmark. The Group’s net sales for 2022 was 167.5 MEUR. Enento Group is listed on Nasdaq Helsinki with the trading code ENENTO.