Terveystalo (TTALO) Q2 2024 earnings summary

Executive summary

• Achieved strongest Q2 ever, with revenue up 5.5% to €340.1m and record profitability, driven by Healthcare Services' topline and margin growth; Swedish turnaround progressing as planned with full impact expected in 2025.

• Adjusted EBITA surged 49.1% to €42.5m (12.5% margin), and EPS nearly doubled to €0.11.

• Portfolio Businesses showed marked improvement, though revenue declined; performance measures delivered results.

• Customer satisfaction remained high, with NPS for appointments at 86.4, up 0.7% year-over-year.

• Full-year 2024 guidance was raised, with adjusted EBITA expected at 11.5–12.5% of revenue.

Financial highlights

• Q2 2024 revenue reached €340.1m, up 5.5% year-over-year; adjusted EBITA €42.5m, up 49.1%; EPS €0.11, up 90.8%.

• H1 2024 revenue grew 4% to €690.4m; H1 adjusted EBITA up 38% to €89.7m.

• Net income Q2: €14.3m (+90.8% y/y); H1: €37.9m (+103.6% y/y).

• Operating cash flow for Q2 was €44.4m, up 71.4% year-over-year; H1: €93.5m.

• Net debt at end of Q2 was €569.8m (down from €601.7m); net debt/adjusted EBITDA at 2.5.

Outlook and guidance

• 2024 revenue expected to grow (2023: €1,286m); adjusted EBITA margin guided at 11.5–12.5% (2023: 9.8%).

• Guidance based on Q2 projections for inflation, consumer demand, employment, and normal morbidity.

• Sweden segment revenue expected to decline due to macro weakness; VAT increase in Finland to have limited impact.

• No material acquisitions or divestments included in guidance.

• Performance improvement program exceeded initial targets, with faster-than-expected impact.