Here are Joni’s comments following Netum being selected as a supplier for two extensive IT specialist service framework agreements with the KEHA Centre
We view the news as very positive and important for the company, as it is currently critical for Netum to win new public sector tenders to fill the revenue gap left by completed major projects. The KEHA Centre is one of these previous significant client accounts. The company’s first-place ranking in data and integration, which is part of its core competence, is particularly favorable. Although this is a significant framework agreement relative to Netum’s size, the KEHA Centre is already a familiar client to the company. Since procurement will be distributed over several years and among multiple suppliers, the news does not prompt any immediate changes to our estimates. However, the contract helps support our expectations that the decline in revenue will level off in the coming years.
The KEHA Centre was one of those large contracts from last year that “ended.” So, it was important to be involved here and secure good rankings to get as large a piece of the pie as possible.
As I understand it, Netum might also act as a subcontractor for other “winners” here, just as Gofore announced it would be acting as a subcontractor for Netum. So there’s a bit of cross-working going on, which is good
Here are Joni’s preview comments as Netum reports its Q3 results next Tuesday.
In September, the company issued a profit warning, lowering its profitability guidance for the current year and anticipating that earnings would dip into negative territory due to delays in new projects. We expect Q3 revenue and earnings to have declined significantly compared to the comparison period. In the report, our focus will be particularly on the development of the sales pipeline, the progress of the efficiency measures announced in October, and management’s comments regarding when the decline in revenue can be curbed.
Here is Netum’s press release on the conclusion of the change negotiations.
Netum Group Plc | Press Release | 27 October 2026 at 15:00 EEST
Netum Oy’s change negotiations concluded – annual cost savings of approximately EUR 1.8 million
Netum Group Plc announced on 12 October 2026 that it was restructuring its organization in line with its clarified strategy and targeting annual cost savings of EUR 1.4–1.8 million. The change negotiations at subsidiary Netum Oy concluded on 26 October 2026. Discussions with the personnel of other group companies were conducted through a corresponding procedure.
As a result of the negotiations and discussions, seven role changes were made, four temporary layoffs were implemented, two roles were eliminated, and one other individual arrangement was agreed upon. As a result of these decisions, capacity for customer work was not reduced, but instead increased.
In addition to these decisions, the cost savings consist of other arrangements implemented since August 2026. Vacated positions have been left unfilled, employees have been temporarily laid off, and working hours have been reduced to part-time by mutual agreement. Total annual cost savings are approximately EUR 1.8 million compared to personnel expenses and other costs in August 2026 that would have materialized without the measures. The savings will already be partially visible in the final quarter of 2026, primarily in 2027, and in full starting from 2028.
The one-off costs related to the restructuring are estimated at approximately EUR 0.3 million. They will be recognized for 2026 and treated as items affecting comparability.
The new organization will officially take effect on 1 January 2027. On the same date, sales will be transferred via a business transfer from Netum Oy to Netum Group Plc, and the Training team from Netum Oy to Studyo Oy. The transfers will not alter the terms and conditions of employment for the personnel. In the new structure, there will be at most two managerial levels between the CEO and a specialist.
Netum’s outlook for 2026 remains unchanged.
”The negotiations have concluded and the decisions have been made. The decisions of the negotiations were directed at administration, sales, and management, not customer work. We reassigned managers and coordinators to customer-facing work, so our billable capacity increases while costs decrease. I want to thank the personnel and employee representatives for constructive negotiations. We are now focusing on sales and the efficient operation of the new organization,” comments Netum Group Plc’s CEO Repe Harmanen.
Here are Joni’s quick comments following Netum’s morning earnings release
Netum published its Q3 business review this morning, which exceeded our earnings expectations. The decline in revenue slowed down from the beginning of the year as expected, and profitability turned slightly positive, whereas we expected the result to slide into a loss. Strong new sales and the cost-saving measures announced by the company in October inspire confidence in a turnaround next year. However, the company’s earnings accumulation from the beginning of the year and its guidance indicate that Q4 earnings will weaken compared to Q3.
Here is a company report on Netum from Joni following the Q3 results
We reiterate our target price of EUR 0.55 for the share and lower our recommendation to Sell (previously Reduce). The decline in revenue slowed as expected, and profitability exceeded our expectations in Q3, although partly due to the release of a bonus provision. New sales have performed well despite the challenging market, and the new efficiency measures will begin to take effect more noticeably starting next year. However, there is uncertainty regarding whether the turnaround will be sufficient, especially given the heavy debt burden. Following the share price rally, the overvaluation has widened and the risk/reward ratio is too unfavorable (2027–28e adj. EV/EBIT 26–20x).
