Automatic Bank Services Limited (SHVA) Q3 2024 earnings summary

Executive summary

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

• Expanded its network with new issuers and acquirers, and advanced software and data services.

• No material operational impact from the ongoing Iron Swords war; business continuity maintained.

Financial highlights

• Revenues for the nine months ended September 30, 2024, rose to NIS 113.8 million, up from NIS 100.4 million year-over-year.

• Net income for the nine months was NIS 38.6 million, up from NIS 28.9 million year-over-year.

• Operating income increased to NIS 43.9 million from NIS 33.7 million year-over-year.

• Cash and cash equivalents at period end were NIS 21.4 million, up from NIS 17.8 million at year-end 2023.

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

Outlook and guidance

• Ongoing expansion of digital and cloud-based services, with new MasterCard collaborations and enhanced data offerings.

• Implementation of cross-deposit system for ATM participants expected by end of 2024.

• Forward-looking statements note uncertainty due to the war and regulatory environment.