Automatic Bank Services Limited (SHVA) Q1 2024 earnings summary

Executive summary

• Operates national payment infrastructure, including charge card clearing and ATM switching, with a single operating segment focused on clearing services.

• Expanded services in Q1 2024, including onboarding new issuers and acquirers, and advancing Ashrait software and Shva Arena offerings.

• No material impact from the Iron Swords war; business continuity and financial strength maintained.

Financial highlights

• Total revenues for Q1 2024 were NIS 36.8 million, up from NIS 30.7 million in Q1 2023.

• Net income for Q1 2024 was NIS 12.1 million, compared to NIS 8.0 million in Q1 2023.

• Operating profit rose to NIS 13.5 million from NIS 9.8 million year-over-year.

• Cash and cash equivalents increased to NIS 30.5 million as of March 31, 2024, from NIS 17.8 million at year-end 2023.

• Dividend of NIS 25 million (including a one-time NIS 6 million) declared and paid in April 2024.

Outlook and guidance

• Continued expansion of digital payment services, including cloud transaction storage and de-tokenization for club cards, with new pilots and partnerships expected in 2024.

• Forward-looking statements note uncertainty due to ongoing war and regulatory changes.