CEO review
President and CEO Ville Iho: Revenue challenges were offset by strong operational performance, resulting in solid profitability
Terveystalo's relative profitability continued to strengthen in the third quarter of 2025 due to improved operational efficiency. Adjusted operating profit (EBIT) was EUR 26.8 million, corresponding to 9.5 per cent of revenue. Earnings per share increased by 9.7 per cent year-on-year to EUR 0.13. Improved operational efficiency supported relative profit development despite revenue decreasing by five per cent year-on-year to EUR 280 million.
In the Healthcare Services, the volumes from individual customers continued to strengthen, supported by strong insurance-backed demand and the freedom of choice experiment for people over 65 years of age. Our enhanced brand preference further supports this development, positioning us as the consumers' first choice. However, subdued demand for occupational health turned revenue downwards. The development of occupational health care is due to three factors: a decrease in the number of employees connected to occupational health care, lower morbidity compared to 2024, and more limited use of services and contract coverage for corporate customers due to the uncertain economic environment. Despite part of the decline being cyclical, we have a clear plan to address the revenue headwind. We are renewing our offering to better reflect the diverse needs of different customer segments, streamlining our delivery and introducing a brand-new digital platform for employers. To leapfrog the development, we established a joint venture with the Swedish technology company MedHelp. The joint development will elevate Terveystalo's digital solutions for companies to a clear leadership position in the market by spring. The AI-based health platform will provide employers with best-in-class insights, transparency and the ability to steer services to gain maximum impact and reduce sickness absences. The new platform will gradually replace our current occupational health solutions, starting in Q1.
The freedom of choice pilot for people over the age of 65, which started in September, got off to a brisk start and had a positive impact on consumer demand for the Healthcare Services segment. During the first month, nearly 10,000 customers over the age of 65 visited Terveystalo's appointments in different parts of Finland, and the excellent customer feedback is a clear sign of a successful operational launch. There is not only demand for the service but also a clear need, as approximately half of those who have used the service are new customers. People have felt they received the help and care they needed within the framework of the freedom of choice experiment. We expect the experiment to bring significant new volume to the Healthcare Services network, and that demand will increase as awareness increases. The pilot runs until the end of 2027.
The profitability of the Portfolio Businesses continued to strengthen despite the expected decline in revenue. The public market saw also some larger partnership tenders, in addition to smaller tenders mainly focused on digital and staffing services. The demand for consumer-driven oral health services continued to increase, and revenue growth picked up year-on-year.
The profitability of the Swedish business strengthened year-on-year due to the profit improvement programme, which progressed as planned despite the decline in revenue. Improved competitiveness through operational efficiency provides a good platform for future growth, which will be the focus of our 2026 agenda.
The strong operational foundation provides us with an excellent base for further developing our services across all customer segments. We are investing heavily in customer-focused product development and technology-led reduction of production costs to facilitate volume growth across customer groups. Our Ella platform for professionals continues to ramp up, improving productivity, and our Occupational Health platform renewal has been fast-tracked. Our solutions for individual customers are already best in class. Still, we are further boosting the development with our digital 10x strategy, tying seamlessly together super-efficient processing of customer contacts, intelligent customer and patient steering and truly scalable digital service components. We continue building our digital ecosystem and aim to transform healthcare comprehensively in the coming years. We strive to make our services more effective, accessible, and affordable for everyone.
Meaningful matters,
Ville Iho
