Automatic Bank Services Limited (SHVA) Q2 2024 earnings summary

Executive summary

• Operates as a national critical infrastructure for payment systems, including charge card clearing, ATM switching, and related services.

• Expanded service offerings in 2024, including new software features, cloud transaction storage, and back office services.

• Maintains a single operating segment focused on clearing, with continued technological and service innovation.

Financial highlights

• Total revenues for H1 2024 were NIS 74.3 million, up from NIS 64.5 million in H1 2023.

• Net income for H1 2024 was NIS 23.0 million, compared to NIS 20.2 million in H1 2023.

• Operating profit for H1 2024 reached NIS 28.3 million, up from NIS 22.1 million year-over-year.

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

• Cash and cash equivalents as of June 30, 2024 were NIS 15.2 million; marketable securities at NIS 140.8 million.

Outlook and guidance

• No anticipated impact on financial strength or operations in the near term despite ongoing regional conflict.

• Forward-looking statements note uncertainty due to the war and macroeconomic conditions.

• Continued expansion of digital and cloud-based services, with new partnerships and pilots underway.