Administer - Profitability slightly below expectations
Administer’s Q2 revenue held steady at EUR 19.3m, while profitability declined slightly due to higher costs, the unprofitability of Kuntalaskenta and increased credit losses.
- Net sales in Q2 were EUR 19.3m (EUR 19.3m in Q2’24) slightly below our estimate of EUR 19.5m. The challenging market environment continued to impact net sales during the quarter.
- Reported EBITDA in Q2 was EUR 1.6m (Q2’24: EUR 1.9m) vs. Evli EUR 2.0m. This translates to a margin of 8.1%. Reported EBITDA was impacted by one-off costs from IFRS transition preparations and the Group’s 40th anniversary celebrations.
- Comparable EBITDA was EUR 1.8m. The slight decline in profitability was due to rising costs, the unprofitability of Kuntalaskenta, and increased credit losses.
- EBITA in Q2 was EUR 1.1m (Q2’24: EUR 1.4m) vs. Evli 1.5m.
- Operating result in Q2 was EUR 0.1m (Q2’24: EUR 0.4m) vs. Evli EUR 0.5m.
- Across the main brands, HR services provider Silta’s net sales declined 3.6% to EUR 6.5m.
- HR and staffing provider Econia’s net sales declined by 9.3% to EUR 5.4m.
- Net sales in Administer’s accounting operations were in line with the previous year at EUR 4.6m.
- Software services provider EmCe reported net sales of EUR 2.0m, up 5.0% y/y.
- Both Administer’s accounting business and Econia implemented adjustment measures, including personnel and operational actions, to improve profitability in response to challenging market conditions.
- During the review period, Administer announced plans to acquire the financial, payroll, and software business of Sarastia’s municipal clients. The completion of the acquisition is pending the approval of the competition authority.
- Guidance for 2025 (reiterated): Administer estimates that its net sales will be EUR 72-78 million and that its EBITDA margin will be 7-10% in 2025.