Q : What data indicates that the market has bottomed out? A : Juuso Pajunen, CFO, explained that Terveystalo continuously monitors various data points such as consumer behavior and visit frequencies. Their internal data suggests stabilization, particularly in connected employees, indicating the market has bottomed out. Ville Iho, CEO, added that the market has reset […]
Q : What data indicates that the market has bottomed out? A : Juuso Pajunen, CFO, explained that Terveystalo continuously monitors various data points such as consumer behavior and visit frequencies. Their internal data suggests stabilization, particularly in connected employees, indicating the market has bottomed out. Ville Iho, CEO, added that the market has reset to a post-inflation new normal and is expected to grow slowly from this base.
The public sector and outsourcing contracts have seen revenue declines, contributing to a weaker performance in the portfolio business.
There has been a decrease in patient visits, particularly in occupational health, due to lower morbidity and macroeconomic factors.
The overall market environment has been exceptionally weak, with revenue declines across all segments, impacting profitability.
The company is actively investing in digital transformation, including AI-assisted appointments, which is expected to enhance efficiency and customer engagement.
Terveystalo PLC ( TTALF ) is experiencing growth in its dental business, which has been a positive performer despite challenging market conditions.
The company has launched a novel occupational healthcare digital platform, which has received positive early feedback and is expected to provide significant value to customers.
Terveystalo PLC ( TTALF ) has seen a stabilization in the number of connected employees, indicating a potential turnaround in the second half of the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Q: Why did you maintain your full-year guidance even if scenarios point below the midpoint? A: Juuso Pajunen stated that as long as both ends of the guidance range remain plausible, they do not change it. The guidance reflects a range of potential outcomes, and they are currently within that range.
Q: What are the drivers that could help reach the midpoint of the full-year guidance? A: Juuso Pajunen mentioned several factors, including an expected improvement in upper respiratory diseases, consumer confidence, corporate behavior, and a bottoming out of connected employees. These elements are anticipated to contribute to a better performance in the second half of the year.
Q: Regarding portfolio businesses, is the margin decrease from Q4 and Q1 last year a one-off or a new level to expect? A: Juuso Pajunen noted that the portfolio business is also facing a negative demand environment, particularly from the public sector. However, they expect sequential improvement throughout the year, with no drastic drops anticipated in upcoming quarters.
Q: How does the Finnish government’s budget proposal impact private healthcare service providers? A: Ville Iho highlighted the expansion of KELA 65 as a positive development. This initiative allows for more diagnostics and higher frequency of use, which is expected to increase user numbers and service frequency, benefiting Terveystalo.
Q: How should we think about the second quarter relative to last year, given the market has bottomed out? A: Juuso Pajunen indicated that while they do not provide quarterly guidance, Q2 is expected to be weak but not as weak as Q1 in terms of comparables. They anticipate sequential improvement overall.
Q: Are there any expected remedies from competition authorities regarding the Hohde acquisition? A: Juuso Pajunen stated that while they do not comment on ongoing processes, they expect the closing to occur in the second half of the year, likely in Q3, based on positive dialogue with authorities.
Q: What actions have been taken to adjust the cost structure, and what are the future plans? A: Ville Iho explained that Terveystalo has scaled down operations in response to lower demand, particularly in customer-facing activities. They are also investing in product, customer service, and sales. Future plans include applying AI in back-office functions to improve efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.…Read more by GuruFocus News