Strong profit growth thanks to improved operational efficiency
July–September 2024 in brief
- Revenue increased by 5.4 percent year-on-year to EUR 295.8 (280.5) million.
- There was one more working day in the reporting period than in the comparison period. Revenue from Healthcare Services increased by 10.8 percent to EUR 232.0 (209.3) million. Revenue from Portfolio Businesses decreased by 9.9 percent to EUR 54.5 (60.5) million. Revenue from the Sweden segment decreased by 9.7 percent to EUR 14.2 (15.8) million.
- Adjusted[1)] earnings before interest, taxes, and amortization (EBITA) increased by 62.2 percent to EUR 34.3 (21.1) million, representing 11.6 (7.5) percent of revenue. Profitability strengthened in Healthcare Services and Portfolio Businesses. Improved operational efficiency following the profit improvement program, a more favorable sales mix, a more balanced margin distribution, and successful commercial measures strengthened profitability both in absolute and relative terms compared to the comparison period. Profitability in the Sweden business decreased significantly from the comparison period due to a decline in revenue caused by expired contracts and weakened demand.
- Items affecting comparability[1)], which had a negative impact on EBITA, totaled EUR 1.8 (2.7) million.
- Profit for the period was EUR 14.7 (3.3) million.
- Earnings per share (EPS) quadrupled from the previous year to EUR 0.12 (0.03).
- Cash flow from operating activities was EUR 41.3 (35.6) million.
- Net Promoter Score (NPS) for appointments was 86.8 (85.8). NPS for hospitals was 96.0 (96.8).
January–September 2024 in brief
- Revenue increased by 4.5 percent year-on-year to EUR 986.1 (944.0) million.
- Revenue from Healthcare Services increased by 9.7 percent to EUR 761.5 (693.8) million. Revenue from Portfolio Businesses decreased by 9.0 percent to EUR 181.8 (199.9) million.
- Revenue from the Sweden segment decreased by 9.9 percent to EUR 59.4 (65.9) million.
- Adjusted[1)] earnings before interest, taxes, and amortization (EBITA) increased by 44.0 percent to EUR 124.0 (86.1) million, representing 12.6 (9.1) percent of revenue. Profitability strengthened in Healthcare Services and Portfolio Businesses. Improved operational efficiency following the profit improvement program, a more favorable sales mix, a more balanced margin distribution, and successful commercial measures strengthened profitability both in absolute and relative terms compared to the comparison period. Profitability in the Sweden business decreased significantly from the comparison period due to a decline in revenue caused by expired contracts and weakened demand. In the fourth quarter of 2023, a profit improvement program was launched in the Sweden business area, aiming for a structural change in profitability in 2025. The program has progressed as planned, and the cost structure has been adjusted to match the weakened demand. The impact of these measures began to show, for example, as a decrease in personnel costs in the third quarter. Next, the focus of the program will shift to improving operational efficiency and commercial measures.
- Items affecting comparability[ 1)], which had a negative impact on EBITA, totaled EUR 16.4 (15.7) million.
- Profit for the period was EUR 52.7 (21.9) million.
- Earnings per share (EPS) increased by 140.4 percent to EUR 0.42 (0.17).
- Net debt/adjusted EBITDA was 2.3 (3.1).
- Cash flow from operating activities was EUR 134.9 (97.4) million.

CEO Ville Iho: Strong profit growth continued, creating a solid foundation for future value creation
Terveystalo continued its strong performance in the third quarter of 2024. Our revenue grew by approximately 5 percent to EUR 296 million, and our profitability improved significantly compared to the comparison period. Our profit improvement measures have proven effective even during periods of seasonally lower demand. Adjusted EBITA grew by over 62 percent to EUR 34 million, corresponding to 11.6 percent of revenue. Our earnings per share quadrupled from the comparison period to EUR 0.12.
The excellent profit development in the Healthcare Services segment continued for the sixth consecutive quarter. Segment revenue grew by nearly 11 percent year-on-year, reaching EUR 232 million in the third quarter. Revenue growth was driven by strong supply, an improved sales mix, successful commercial measures, and an early and strong start to the flu season. Revenue increased across all customer groups. Growth and improved operational efficiency raised the segment’s adjusted EBITA by 67 percent to EUR 34 million, which was approximately 15 percent of revenue. The foundations of our core business are on solid ground and continue to strengthen. We will focus on profitable growth and strengthening services that create value for our customers, as well as medical quality and operational efficiency.
Profitability in Portfolio Businesses improved significantly despite a 10 percent decline in revenue. The segment’s adjusted EBITA grew by 70 percent year-on-year to approximately EUR 3 million, representing 6 percent of revenue. Segment revenue was approximately EUR 54 million. Loss-making outsourcing contracts have largely ended, and proactive customer selection has been implemented in staffing services to strengthen profitability. Demand for oral health services remains soft, and sales to the reorganized public market continue to progress slowly. New tenders have only been seen in digital services.
Financial guidance for 2024
Terveystalo estimates that its full-year 2024 revenue will increase (2023: EUR 1,286 million), and that adjusted earnings before interest, taxes, and amortization (EBITA) will be 12.0–12.5 percent of revenue (2023: 9.8 percent).
Briefing
Terveystalo will hold an English-language results webcast and conference call on Friday, October 25, 2024, at 10:30 a.m. EEST. The webcast can be followed at: https://terveystalo.videosync.fi/q3-2024