Terveystalo Plc, Interim Report, 23 October 2025 at 09:00 EEST
This release is a summary of Terveystalo's Interim Report January-September
2025. The full release is attached to this stock exchange release and is
available on our website at:
https://www.terveystalo.com/en/company/investors/reports-and-presentations/
July-September 2025 in brief
· Revenue decreased by 5.2 percent year-on-year to EUR 280.4 (295.8) million.
The number of working days was flat year-on-year.
The Healthcare Services segment revenue decreased by 2.3 percent and was EUR
226.6 (232.0) million.
Portfolio Businesses' revenue decreased by 17.5 percent and was EUR 45.0 (54.5)
million. The revenue from Sweden decreased by 5.3 percent and amounted to EUR
13.5 (14.2) million.
· Adjusted[1)] operating profit (EBIT) amounted to EUR 26.8 (27.0) million,
representing 9.5 (9.1) percent of revenue.
In the Healthcare services, adjusted operating profit (EBIT) weakened from the
comparison period due to lower revenue; however, the operational efficiency
remained strong. In the Portfolio Businesses, adjusted EBIT increased due to the
termination of low margin outsourcing contracts and improved operational
efficiency. In Sweden, adjusted EBIT improved primarily due to strengthened
operational efficiency.
· Items affecting comparability[1)] with an adverse effect on EBIT were EUR
1.4 (2.1) million.
· Operating profit (EBIT) increased by 1.7 percent and amounted to EUR 25.4
(25.0) million.
· The result for the period was EUR 16.2 (14.7) million.
· Earnings per share (EPS) increased by 9.7 percent and amounted to EUR 0.13
(0.12).
· Cash flow from operating activities was EUR 54.5 (41.3) million.
· NPS (Net Promoter Score) for appointments was 87.2 (86.8). NPS for hospitals
was 96.9 (96.0).
January-September 2025 in brief
· Revenue decreased by 3.8 percent year-on-year to EUR 948.9 (986.1) million.
There were two fewer working days than during the comparison period.
The revenue of the Healthcare Services segment increased by 0.4 percent to EUR
764.6 (761.5) million. The revenue of the Portfolio Businesses decreased by 20.5
percent to EUR 144.6 (181.8) million. The revenue from Sweden decreased by 8.2
percent to EUR 54.5 (59.4) million.
· Adjusted[1)] operating profit (EBIT) increased by 9.0 percent year-on-year
to EUR 111.3 (102.1) million, representing 11.7 (10.4) percent of revenue.
Profitability strengthened in the Healthcare Services and Portfolio businesses
due to improved operational efficiency and commercial measures. Profitability in
Sweden improved slightly, following the planned progress of the profit
improvement programme.
· Items affecting comparability[1)] with an adverse effect on EBIT were EUR
6.1 (16.9) million.
· The result for the period was EUR 71.8 (52.7) million.
· Earnings per share (EPS) increased by 36.2 percent and amounted to EUR 0.57
(0.42).
· Net debt/EBITDA was 2.1 (2.5).
· Net debt/adjusted EBITDA was 2.0 (2.3).
· Cash flow from operating activities was EUR 122.4 (134.9) million.
The figures in parentheses refer to the corresponding period one year ago.
[1) Adjustments are material items outside the ordinary course of business,
associated with acquisition-related expenses, restructuring-related expenses,
gains and losses on the sale of assets, impairment losses, strategic projects,
and other items affecting comparability. Adjustments related to the profit
improvement programs were approximately EUR -0.3 (1.9) million during the third
quarter and EUR 4.9 (11.3) million during January-September.]
President and CEO Ville Iho: Revenue challenges were offset by robust
operational performance, resulting in solid profitability
Terveystalo's relative profitability continued to strengthen in the third
quarter of 2025 due to improved operational efficiency. Adjusted operating
profit (EBIT) was EUR 26.8 million, corresponding to 9.5 per cent of revenue.
Earnings per share increased by 9.7 per cent year-on-year to EUR 0.13. Improved
operational efficiency supported relative profit development despite revenue
decreasing by five per cent year-on-year to EUR 280 million.
In the Healthcare Services, the volumes from individual customers continued to
strengthen, supported by strong insurance-backed demand and the freedom of
choice experiment for people over 65 years of age. Our enhanced brand preference
further supports this development, positioning us as the consumers' first
choice. However, subdued demand for occupational health turned revenue
downwards. The development of occupational health care is due to three factors:
a decrease in the number of employees connected to occupational health care,
lower morbidity compared to 2024, and more limited use of services and contract
coverage for corporate customers due to the uncertain economic environment.
Despite part of the decline being cyclical, we have a clear plan to address the
revenue headwind. We are renewing our offering to better reflect the diverse
needs of different customer segments, streamlining our delivery and introducing
a brand-new digital platform for employers. To leapfrog the development, we
established a joint venture with the Swedish technology company MedHelp. The
joint development will elevate Terveystalo's digital solutions for companies to
a clear leadership position in the market by spring. The AI-based health
platform will provide employers with best-in-class insights, transparency and
the ability to steer services to gain maximum impact and reduce sickness
absences. The new platform will gradually replace our current occupational
health solutions, starting in Q1.
The freedom of choice pilot for people over the age of 65, which started in
September, got off to a brisk start and had a positive impact on consumer demand
for the Healthcare Services segment. During the first month, nearly 10,000
customers over the age of 65 visited Terveystalo's appointments in different
parts of Finland, and the excellent customer feedback is a clear sign of a
successful operational launch. There is not only demand for the service but also
a clear need, as approximately half of those who have used the service are new
customers. People have felt they received the help and care they needed within
the framework of the freedom of choice experiment. We expect the experiment to
bring significant new volume to the Healthcare Services network, and that demand
will increase as awareness increases. The pilot runs until the end of 2027.
The profitability of the Portfolio Businesses continued to strengthen despite
the expected decline in revenue. The public market saw also some larger
partnership tenders, in addition to smaller tenders mainly focused on digital
and staffing services. The demand for consumer-driven oral health services
continued to increase, and revenue growth picked up year-on-year.
The profitability of the Swedish business strengthened year-on-year due to the
profit improvement programme, which progressed as planned despite the decline in
revenue. Improved competitiveness through operational efficiency provides a good
platform for future growth, which will be the focus of our 2026 agenda.
The strong operational foundation provides us with an excellent base for further
developing our services across all customer segments. We are investing heavily
in customer-focused product development and technology-led reduction of
production costs to facilitate volume growth across customer groups. Our Ella
platform for professionals continues to ramp up, improving productivity, and our
Occupational Health platform renewal has been fast-tracked. Our solutions for
individual customers are already best in class. Still, we are further boosting
the development with our digital 10x strategy, tying seamlessly together super
-efficient processing of customer contacts, intelligent customer and patient
steering and truly scalable digital service components. We continue building our
digital ecosystem and aim to transform healthcare comprehensively in the coming
years. We strive to make our services more effective, accessible, and affordable
for everyone.
Meaningful matters,
Ville Iho
Guidance for 2025
(unchanged)
Terveystalo clarified the structure of its guidance in connection with the half
-year report and provided a range for adjusted EBIT in euros instead of revenue
and adjusted EBIT margin.
Terveystalo expects its full-year 2025 adjusted EBIT to be EUR 155-165 million
(2024: EUR 140.5 million).
The estimates are based on the current demand environment, employment levels,
and morbidity rates. The estimates account for a decrease of approximately EUR
30 million in revenue within the Portfolio Businesses segment's outsourcing
operations due to the ending of contracts. Profitability is expected to
strengthen in all business segments. The estimates do not account for
significant acquisitions or divestments.
Medium term financial targets
Profitable growth:
· EPS to grow on average by 10 percent p.a.
· We expect faster earnings per share growth in 2025, as fewer items affecting
comparability are expected.
Moderate leverage ratio:
· Net debt to EBITDA not to exceed 2.5x
· Indebtedness may temporarily surpass the target level, particularly in
conjunction with acquisitions.
Attractive dividends:
· At least 80 percent of net result to be distributed as dividends
· The dividend proposal must consider the company's long-term potential and
financial status.
Key figures
[][][][][][][][][][][][][][][][][][]
MEUR unless stated 7-9/2025 7-9/2024 Change, 1-9/2025 1-9/2024 Change,
2024
otherwise % %
Revenue 280.4 295.8 -5.2 948.9 986.1 -3.8
1,340.0
Adjusted EBITA * 32.4 34.3 -5.5 128.6 124.0 3.8
171.0
[1)]
Adjusted EBITA, % 11.5 11.6 - 13.6 12.6 -
12.8
* [1)]
EBITA [1)] 31.0 32.5 -4.4 122.5 107.5 14.0
147.6
EBITA, % [1)] 11.1 11.0 - 12.9 10.9 -
11.0
Adjusted operating 26.8 27.0 -1.0 111.3 102.1 9.0
140.5
profit
(EBIT) * [1)]
Adjusted operating 9.5 9.1 - 11.7 10.4 -
10.5
profit
(EBIT), % * [1)]
Operating profit 25.4 25.0 1.7 105.2 85.2 23.4
116.1
(EBIT)
Operating profit 9.1 8.4 - 11.1 8.6 -
8.7
(EBIT), %
Return on equity - - - 16.4 -2.2 -
13.5
(ROE) (LTM),
% [1)]
Equity ratio, % - - - 39.6 37.8 -
39.4
[1) ]
Earnings per 0.13 0.12 9.7 0.57 0.42 36.2
0.57
share, EUR
Weighted average 126,655 126,605 - 126,644 126,605 -
126,597
number of
shares
outstanding, in
thousands
Net debt [1)] - - - 500.5 545.4 -8.2
504.8
Gearing, % [1)] - - - 89.1 103.0 -
92.1
Net debt/EBITDA - - - 2.1 2.5 -
2.3
(LTM) [1)]
Net debt/Adjusted - - - 2.0 2.3 -
2.1
EBITDA
(LTM) * [1)]
Average personnel, - - - 5,576 5,889 -5.3
5,841
FTE[2)]
Non-employees (end - - - 6,029 6,037 -0.1
6,015
of
period)[3)]
Sustainability
PEI-index, %[4)] 70.1 68.5 2.3
69.2
Net Promoter Score 87.2 86.8 0.5
87.7
(NPS),
appointments
Net Promoter Score 96.9 96.0 0.9
96.2
(NPS),
hospitals
Engagement 4.2 4.1 2.4
4.2
index[5)]
* Adjustments are
material
items outside the
ordinary
course of business
and these
relate to
acquisition
-related
expenses,
restructuring
-related expenses,
gains and
losses on sale of
assets
(net), impairment
losses,
strategic projects
and other
items affecting
comparability.
1) Alternative
performance
measure.
Terveystalo
presents
alternative
performance
measures as
additional
information to
financial
measures defined
in IFRS.
Those are
performance
measures that the
company
monitors
internally and
they
provide
management,
investors,
securities
analysts and other
parties
significant
additional
information
related to the
company's results
of
operations,
financial
position and cash
flows.
These should not
be
considered in
isolation or as
a substitute to
the measures
under IFRS.
2)[ ]2025 does not
include
Recuror Oy,
Veikkolan
hammaslääkäriasema
Oy,
Medimar
Scandinavia Ab and
Cityläkarna
Mariehamn Ab.
Financial year
2024 does not
include Medimar
Scandinavia
Ab and the
companies acquired
during 2024 in
Finland (SRK
Group Oy, Suomen
Radiologikeskus
Oy, iRad Oy
and Kajaanin
Radiologikeskus
Oy and Cityläkarna
Mariehamn
Ab).
3)[ ]Financial
year 2024 does
not include the
companies
acquired during
2024 in
Finland (SRK Group
Oy, Suomen
Radiologikeskus
Oy, iRad Oy
and Kajaanin
Radiologikeskus
Oy and Cityläkarna
Mariehamn
Ab).
4) PEI index
(Patient
Enablement
Instrument) is
used to measure
whether the
patient feels that
he is
coping with his
symptoms or
illness much
better, better,
as before, or
worse after the
reception. The
scale is 1-4.
The PEI index is
calculated
by taking the
percentage of
patients who felt
they are
able to cope with
their
health condition
better or
much better and
comparing it
to the total
number of
respondents.
5) The engagement
index for
Terveystalo
professionals is
based on four
questions from
Terveystalo's
annual
professional
survey. The
results are used
to calculate
the index value,
i.e. the
average of the
results. The
questions concern
supervisory
work, the
preconditions for
success at work,
work
communities and
commitment.
The index is
expressed on a
scale of 1-5.
Result briefing
Terveystalo will arrange a result webcast and conference call in English on 23
October 2025, starting at 10:30 EEST. You can watch the webcast online at:
https://terveystalo.events.inderes.com/q3-2025
Conference call:
You can access the teleconference by registering on the link below. After the
registration you will be provided phone numbers and a conference ID to access
the conference. https://palvelu.flik.fi/teleconference/?id=50051650
If you wish to ask a question, please, dial *5 on your telephone keypad to enter
the queue.
Helsinki, 22 October 2025
Terveystalo Plc
Board of Directors
For further information, please contact:
CFO Juuso Pajunen
Tel. +358 40 584 9722
Kati Kaksonen, Vice President, Investor Relations & Sustainability
Tel. +358 10 345 2034
kati.kaksonen@terveystalo.com
Distribution:
Nasdaq Helsinki Oy
Main media
www.terveystalo.com
Terveystalo in brief
Terveystalo is the largest private healthcare service provider in Finland in
terms of revenue and one of the leading occupational health providers in Finland
and Sweden. We aim to create fluent, caring, and effective healthcare of the
future. We offer comprehensive primary care, specialized care, and well-being
services for corporates, private individuals, and public sector customers. Our
digital services are accessible 24/7. We also offer our services in
approximately 360 clinics, including 17 hospitals in Finland. In Sweden we offer
occupational health services in approximately 140 units. Terveystalo is listed
on the Helsinki Stock Exchange.
In 2024, Terveystalo served approximately 1.2 million individual customers in
Finland, with around 7.6 million customer appointments. Terveystalo employs
approximately 15,000 healthcare and other professionals. www.terveystalo.com