Enfo IT Services H1 profitable .

The majority owner of Enfo Oy, KPY, released its half-year report (available in Finnish) on September 14, 2023. Enfo's operating profit for the review period was -2.3 (-1.0) million euros. Of this, the data and analytics business provided by Epical accounted for -2.8 million euros, while the IT services business contributed 0.5 million euros. The decline in Enfo's operating profit is attributed to the decrease in the profitability of the consulting business. Profitability has been challenged, particularly by the increase in labor costs associated with specialist-driven consulting activities, which have not been fully reflected in contracts, as well as a one-time investment related to ERP system upgrade. The overall profitability of Enfo has also been affected by one-time costs related to the separation of consulting and IT services business. Despite cost burdens, the IT services business remained profitable during the reporting period. The businesses have been reported separately in their current format since the beginning of the fiscal year 2023.

The year 2023 is expected to be challenging for Enfo. Challenges are particularly focused on the consulting business of Enfo's subsidiary, Epical Sweden, in Sweden. However, the outlook for Enfo's IT services business is stable, and operations are expected to remain profitable.

Nina Annila, EVP of Enfo IT Services, notes that IT Services have executed several new customer IT outsourcing transition projects over the past year, with service invoicing expected to reach anticipated contract levels in H2. Strong collaboration with existing customers has also continued. For example, the number of realized end-user contacts indicates that the existence and functionality of IT services are significant for the customers.

Regarding business development, Enfo IT Services continue to have special opportunities in hybrid solutions, where the customers utilize both public cloud services and Enfo's data center capacity. Security solutions and services related to end-user experience are also highly important for client companies. For Epical, growth opportunities are primarily related to solutions for managing, utilizing, and protecting client companies' data.