Good question. I have to say that the change negotiations (YT) in this whole category indicate that growth, at least, is not strongly on the horizon. The company currently has no open job positions available either.
The release did not specify exactly where the negotiations are targeted. They could be aimed at technology developers, sales, administration—anything.
AI has certainly changed a lot and automated many tasks, so reducing the number of coders is understandable, and AI has also boosted efficiency in administration and sales tasks. So, the personnel negotiations are justifiable.
Regardless, I would believe that the message mainly reflects the slowness of the market; growth is not expected, and they want to strengthen profitability. I believe that next year, profitability will be at a very high level as a result of these changes. To my ears, the news is fairly neutral; I wasn’t really expecting much tailwind for growth from the market anyway, but this is a clear signal that at least double-digit growth is not to be expected this year or next.
Well, there’s bound to be redundant staff at every level who don’t contribute anything to the company on a daily basis if around 16% can be laid off. You’d think that AI, in particular, would reduce the need for IT staff, unless you’re a developer who understands full stack. IT is apparently in India, so there probably isn’t anyone left on the basic database, hardware, etc. side? You’ll probably find those in HR, ESG, and finance departments.
Enento’s CEO Teppo Paavola was interviewed by Iikka immediately after the Q1 announcement
Topics:
00:00 Intro
00:09 Q1 summary
00:34 Which products are selling best?
01:56 Has the demand outlook improved?
02:42 Where can profitability be improved?
03:48 Organizational model
05:21 UC synergies
06:57 Profitability by country
07:35 Change negotiations
08:09 AI
09:11 Interest rates have risen
Here is a company report on Enento from Roni after Q1
Enento’s adjusted Q1 result slightly exceeded our forecasts, but considering non-recurring items, the reported result met our expectations. Although new risks have emerged over the nascently improving demand outlook from the beginning of the year due to the war in Iran, the prerequisites for clear earnings growth this year should nevertheless be in place. Overall, we still see the valuation and risk-reward ratio as attractive. We reiterate our target price of EUR 17.0 and our Accumulate recommendation.
Enento is selling off a small offshoot. This sale of Emailer and the initiated change negotiations raise hopes again that Enento is now being trimmed for sale.
Financial impacts The transaction has a limited impact on Enento’s adjusted EBITDA, adjusted operating profit (EBIT), and cash flow. Emailer’s net sales in 2025 were EUR 0.8 million and EBITDA was EUR 0.3 million. In connection with the transaction, Enento will record a loss on sale of approximately EUR 4.2 million related to the write-down of goodwill from the balance sheet, which will be reported as an item affecting comparability."
A loss on sale of 4.2 million? So at what kind of steep price was it originally bought and at what price was it sold now It’s just as well that Emaileri was sold; it’s been in free fall for the last 4 years. They could also sell the Goava stake at any price; that path is also starting to look exhausted.
Hopefully, during Paavola’s era, acquisitions will focus directly on the credit information & compliance side, and no email services or CRM enrichments will be bought that are borderline in terms of whether they even belong to Enento’s business.
Emaileri was acquired in 2017. Quote from the 2018 annual report:
Acquisition of Emaileri Oy shares
Through an agreement signed on 28 September 2017, Asiakastieto Group Plc acquired the entire share capital of Emaileri Oy, which was formed through a demerger from Websonic Oy, a provider of electronic communication and marketing services, on 30 September 2017. The transaction took effect on 1 October 2017. The purchase price was EUR 6.5 million, of which EUR 0.4 million was paid as a final purchase price on 1 October 2018, and the remainder of the final purchase price, EUR 0.3 million, will be paid on 1 October 2019.
The 2017 consolidated income statement includes EUR 0.4 million in net sales and EUR 0.2 million in profit for the period following the acquisition of Emaileri Oy.
Based on the purchase price allocation, EUR 2.0 million of the purchase price was allocated to the customer base, which is amortized over eight years, and to IT systems EUR 0.4 million, which is amortized over five years. The acquisition resulted in EUR 4.5 million goodwill. Expert fees for the acquisition of shares and the execution of the transaction of EUR 0.1 million and transfer tax expenses of EUR 0.1 million related to the share transaction were recorded as expenses in the 2017 financial year.
Emaileri Oy has been consolidated into the Group since 1 October 2017. The consolidated income statement for 2017 includes EUR 0.4 million in net sales and EUR 0.2 million in profit for the period following the acquisition of Emaileri Oy.
Ronin’s comments on Enento selling its Emaileri business
Enento announced that it has sold Emaileri Oy to the Finnish Boston Information Group. We consider the sale of a small, non-core unit to be a sensible step to focus operations and resources on strategic priority areas. Emaileri’s business has been very small relative to the group as a whole, and the transaction thus has only a limited impact on Enento’s revenue and operating profit. The transaction has only a marginal impact on our forecasts, and we will take it into account in our next update.
The 2024 figures for both Dun & Bradstreet Finland and Dun & Bradstreet Marketing have decreased by double digits from 2023 to 2024. Marketing has even dropped by over 30%. Has there been some accounting trickery involved here, with sales being moved to another subsidiary that isn’t immediately obvious, or sales being booked to other European operations? Or is it a case of Dun & Bradstreet’s market situation having completely collapsed in Finland? @Roni_Peuranheimo
Hi, I can’t comment specifically on Dun&Bradstreet’s accounting, but I believe that decline in revenue is related to D&B’s divestment of its Finnish B2C business at the end of 2023, which was also briefly discussed here on the forum at the time. D&B’s 2024 annual report mentions: “Excluding the impact of the divestiture of a business-to-consumer business in Finland of $2.3 million,” which should account for most of the impact. Thus, this explains at least part of the decline, on top of which an organic decrease in revenue would certainly not be a surprise given the weakening state of the Finnish economy in 2024.
Does B2C by Dun & Bradstreet refer to consumer data such as demographic data, consumer negative credit remarks, etc., or specifically to services sold directly to consumers, such as credit bans, personal credit reports, or business reports similar to Asiakastieto that can be purchased without a business ID (Y-tunnus)?
Yes, as I understand it, Dun & Bradstreet will continue to operate in Finland regarding consumer credit default and population data as before, so that is likely not the issue.
Google Gemini claims that this was commented on in D&B’s Q1 2024 Earnings Call, stating it was the divestiture of a non-core business to consumer marketing business in Finland in the fourth quarter of 2023. I haven’t checked exactly what was said there, but it aligns with my own thoughts.
On 5 June 2026, Enento acquired the entire share capital of the Swedish company Eivora AB. Eivora collects ownership data on Swedish companies and provides related services to banks and investment firms in Sweden. Eivora has previously supplied ownership data to Enento in Sweden. In 2025, Eivora’s net sales were approximately EUR 0.6 million (SEK 6.5 million), of which about half came from sales to Enento.
The acquisition supports Enento’s strategy, where compliance is a key strategic growth area. By integrating Eivora into the Group, Enento strengthens its compliance service offering in Sweden and increases its distinctive capabilities in services based on proprietary data.
“We see significant growth potential in compliance services across the Nordic region. With Eivora, we strengthen our position in Swedish ownership data and improve our ability to develop and scale data- and AI-based services in general,” says Teppo Paavola, CEO of Enento Group.
In the initial phase, Eivora will operate as an independent company within Enento Group and will continue to serve its current customers under its own brand.
“Eivora was founded to bring transparency and reliability to ownership data in Sweden. Joining Enento Group allows us to further develop our services with a long-term perspective while continuing to serve our customers with the same focus and agility as before. I am excited to lead Eivora into its next phase as part of a Nordic group for which compliance is a clear growth area,” says Daniel Andersson, co-founder of Eivora.
The transaction is expected to be completed during the third quarter of 2026, and Eivora will be reported as part of Enento’s Sweden segment. The acquisition has no significant impact on Enento’s operations or the financial outlook for 2026.
Nice supplementary acquisition. Personally, I would like to see some bolder moves, such as the acquisition of the Finnish Upright Project, for example.
Also, Kreditz from Sweden could provide good complementary services for Enento?
I have strong confidence in Paavola, who certainly has the experience and vision required to achieve stronger growth.
The stock price has taken a sharp dive following a strong Q1 report. The outlook is better than it has been in years, yet many have been on the sell side. Is it perhaps the fear of regulatory changes in Sweden that is adding a slight additional risk to the business?
This risk has certainly been known for a long time and the impacts are, in my opinion, fairly predictable, but perhaps there is something else in the background making investors cautious.
It’s just as well that Emaileri was sold; it’s been in free fall for the last 4 years. They could also sell the Goava stake at any price; that path is also starting to look exhausted.