Repe Harmanen, CEO, in the Financial Statements Release 1 January–31 December 2024:
“The fourth quarter was challenging, and the general slowdown in the market and the postponement of customers' decisions concerning projects affected our growth. The Finnish Government's decisions on spending cuts, in particular, affected our customers' readiness to invest. In the fourth quarter, our revenue decreased by 2.2%, but we managed to maintain our comparable EBITA at the previous year's level. We can be fairly satisfied with our performance. However, price competition in the market intensified significantly, and it became more difficult to win profitable projects. Continuing brisk and profitable growth in Finland’s current economic climate is increasingly challenging.
On the whole, 2024 was a continuation of Netum's significant growth and success. Our revenue for January–December increased by 18.6% year-on-year and amounted to EUR 44 million. It is particularly pleasing that organic growth represented 2.8% of this, in spite of the difficult market situation. Comparable EBITA improved significantly to EUR 4.6 million, representing 10.4% of revenue.
These achievements would not have been possible without our committed customers, dedicated personnel and strong stakeholders. I would like to extend my warmest thanks to all of you for your trust and contribution, which have helped to drive us forward. In particular, I would like to highlight the strong competence and professionalism of our employees. They enable us to provide our customers with high-quality, secure and effective IT solutions. Highly skilled personnel are at the heart of Netum, and innovation and commitment are directly reflected in customer satisfaction and the growth of our business.
Our customers’ trust has also played a key role in our success. Long-term customer relationships and new partnerships are proof that the “Inspired by wisdom” thinking offered by Netum creates genuine value. We have successfully implemented several significant customer projects that have strengthened our position as a reliable IT service partner. Together with our customers, we develop responsible and secure digital solutions that support sustainable growth and meet the challenges of a changing world.
During the year, we have deepened our sustainability thinking, and its impacts are starting to become increasingly visible in both our internal processes and the services we offer to our customers. For us, sustainability is not just a word — it is the foundation of our operations and the core of our strategy. This means concrete action to reduce environmental impacts, promote ethical business and, above all, support the well-being of our employees. We believe that employee well-being is not only a resource in working life, but it also has more far-reaching impacts on the life of individuals and society. That is why we want to develop our work community where work-life balance, development opportunities and an appreciative culture support sustainable success.
The year 2025 has begun in the midst of unprecedented global uncertainty. Selfish and unilateral decisions made by the major world powers undermine global stability, exacerbate economic uncertainty and also weaken investor confidence in Finland as well as the rest of Europe. This is likely to be directly reflected in our customers’ decision-making when investments are postponed or re-evaluated. In addition, the decisions on spending cuts made by the Finnish Government in late 2024 reduce the growth opportunities of the IT sector, while price competition in the domestic market is simultaneously intensifying and inflation leads to increased cost pressures. These factors may have an impact on the second half of the year in particular. Together, these factors create an exceptionally murky operating environment that underscores the importance of adaptability and agility.
We are responding to the growing uncertainty by strengthening our strategic planning and operational forecasting so that we can react quickly to changing circumstances. We are focusing on agility and cost efficiency while maintaining a high level of service for our customers. In addition, we are developing customer-oriented solutions that support their business even in uncertain times. This ensures that we are able to adapt to market changes and continue our sustainable growth even in challenging conditions. In 2025, we estimate revenue to be in the range of EUR 41–46 million and comparable EBITA to be 7–10% of revenue.
I have had an inspiring start to the year as Netum Group Plc's new CEO. While I am familiar with the company through my work on the Board of Directors, the new role provides me with fresh perspectives and the opportunity to focus even more deeply on the company’s day-to-day operations. My meetings with our employees and customers have been particularly valuable — their thoughts and wishes guide us in building an even stronger Netum. These conversations strengthen my confidence in the future, and together with we can move the company forward!”