ABC Arbitrage (ABCA) H1 2024 earnings summary

Executive summary

• Net income for HY2024 was €8.9M, up 0.4% year-over-year, with operating income stable at €8.85M.

• Quantitative asset manager with 28 consecutive profitable years and ROE consistently above 10%.

• Group activity remained resilient despite low market volatility and subdued M&A activity, with a slight improvement in Q2.

• Focuses on systematic arbitrage strategies across global markets, with strong risk management and in-house technology.

• Springboard 2025 plan targets ROE above 10% and cumulative net income of €100M over three years.

Financial highlights

• Net revenues for HY2024: €22.8M, up 12.9% year-over-year.

• Net gains on financial instruments at fair value rose to €12.4M from €11.1M year-over-year.

• Investment services fees increased to €10.2M from €9.0M year-over-year.

• Payroll costs increased 27.7% to €9.5M; total costs rose 22.5% to €14.0M.

• Cash and cash equivalents stood at €10.9M at June 30, 2024, up from €9.2M at year-end.

Outlook and guidance

• Springboard 2025 aims for minimum annual ROE of 10% and target ROE of 15%.

• Cumulative net income target of €100M over three years, assuming average market conditions.

• Minimum distribution of €0.30 per share annually, payout ratio ~80%.

• Interim dividends of €0.10 per share each are confirmed for October and December 2024.

• Group believes it can exceed €30M in results if market parameters revert to 10-year averages.