Joni has prepared a pre-earnings report on Netum, which will release its Q4 results on Tuesday, March 10. 
The IT services market has remained difficult in Q4. We expect the company’s revenue decline to have continued strongly at the end of the year as a result of a decrease in the workload of large projects and cost-saving pressures in the public sector. We estimate that profitability remained at a low level, weighed down by weak utilization rates. The company conducted new change negotiations (muutosneuvottelut) at the beginning of the year, which reflects the fact that the market situation has remained challenging, and because of this, we have slightly lowered our forecasts. We estimate that the company will guide for revenue to continue declining in the current year, but there is uncertainty regarding profitability guidance, as well as the potential dividend. We are following signs of a potential earnings turnaround with interest. The valuation profile of the stock is relatively neutral considering the earnings potential and the uncertainty of a turnaround. We reiterate our Reduce recommendation and lower the target price to 1.1 euros (prev. €1.25).