ABC Arbitrage (ABCA) H2 2024 earnings summary

Executive summary

• Net income rose 62.7% YoY to €26.8M in 2024, driven by trading gains, investment service fees, and a €5.7M tax provision reversal.

• Operating income reached €21M, with ROE at 16.4% and 30 consecutive profitable years.

• Core business and new strategies contributed ~40% of growth; increased volatility in H2 offset low M&A activity.

• Distribution policy maintained with €0.34/share for FY2024 (~7% yield); payout ratio at 76%.

• Significant investments in R&D and IT, with 2025 IT spend projected at €6.5–7M (+1.5M vs 2024).

Financial highlights

• Net income attributable to equity holders: €26.8M (+62.7% YoY); net margin 52%.

• Net revenues: €51.2M (+30.4% YoY); income before tax: €21M (+28.3% YoY).

• Payroll costs: €21.2M (+45.5% YoY); total costs: €30.2M (+31.8% YoY).

• EPS increased to €0.45 from €0.28 year-over-year.

• Cash and cash equivalents at year-end were €9.7M, stable versus €9.2M in 2023.

Outlook and guidance

• 2025 expected to feature persistent volatility, high equity valuations, and inflationary pressures.

• Focus on validating new strategies and growing external AuM pipeline; +10 hires planned, mainly in R&D.

• Distribution policy unchanged; max(€0.30, POR 80%) until new plan in 2026.

• Risk budget increased by 15% to capture targeted opportunities.

• No specific 2025 guidance provided due to market unpredictability.