Terveystalo revises its market outlook due to uncertain market situation and issues a profit warning
Terveystalo Plc. Stock Exchange Release 20 March 2020 at 16:40 EET
Terveystalo Oyj changes its market outlook published on 13 February 2020 due to uncertain market situation.
Market outlook 20 March 2020:
- The market environment is very uncertain in the short term due to the exceptional measures in mitigating the coronavirus epidemic.
- The situation is expected to have a significant impact on consumer behavior and demand for preventive and well-being services in the coming months and thus on Terveystalo's expected financial development.
- Demand for non-emergency medical care and oral health services are also expected to decline in the short term.
- At present, it is difficult to assess the duration of the situation, and hence the economic impact, due to the changing nature of the situation.
“As part of the Finnish healthcare sector, it is our job to ensure that Finns recover as quickly as possible and receive good care. It is our common task to slow down the spread of the virus and to ensure that other health-related issues in Finland are taken care of as well. We will also do our utmost to relieve the pressure public sector is facing in this exceptional situation.
Demand for health services remains high, but the nature of demand has now changed rapidly. We believe that demand for remote services will remain very strong and we have trained a number of our professionals to meet this demand. Care need assessment and counselling through digital channels also contributes to relieving the pressure from public sector. On the other hand, sales of preventive and well-being services, non-emergency medical care and oral health services are expected to decline. At the same time, demand in the public sector has grown significantly. In this changed situation, we are redirecting resources to where demand is greatest. Cost adjustment measures have also been initiated and will continue, taking into account changes in different services,” says CEO Ville Iho.
The market outlook published in Financial Statements Bulletin 13 February 2020 was:
- The market environment remains favorable in spite of weakened consumer confidence.
- Corporate customers keep up a steady demand. Price competition is intensifying in certain customer groups in occupational health. At the same time, the relative share of preventive services is increasing, which is a trend that will be further strengthened by the upcoming change in legislation concerning Kela reimbursements, due to be introduced at the beginning of 2020.
- Private customer demand also remains strong, and the trend of comprehensive well-being is creating broad growth in service demand. This is particularly reflected in growth in the demand for services other than physician appointments.
- Public sector demand remains strong in various service categories.
For more information, please contact:
Kati Kaksonen, Director, Investor Relations and Financial Communications
Tel. +358 10 345 2034
Nasdaq Helsinki Ltd