Talenom

We expect Spain to drive revenue to a 6% growth, even though revenue in Sweden continues to decrease.

Talenom's Q2 earnings would have significantly exceeded our expectations had it not been for the 1.2 MEUR write-down of Spanish trade receivables. Finnish profitability clearly exceeded our estimates, and Sweden indicated an impending earnings turnaround, which is important for the company's risk profile.

According to our forecasts, Spain's revenue will surpass Sweden's for the first time in Q2.

Talenom's Finnish core business continues to reliably generate strong cash flow, but investors doubt the sensibility of international growth.

Talenom's Q1 result exceeded our expectations, particularly due to stronger-than-anticipated growth in Finland, but there is still much to do in international operations.