Automatic Bank Services Limited (SHVA) Q4 2024 earnings summary

Executive summary

• 2024 was marked by significant security challenges in Israel, impacting the economy and business activity, but the company maintained full operational continuity and stability in payment systems.

• Record revenues of NIS 151 million were achieved, with a 32% increase in operating profit to NIS 55.6 million and EBITDA (excluding equity compensation) of NIS 67.1 million.

• Strategic focus included launching new growth engines (Shva Insights, Shva Arena), expanding the customer base, and investing in modernization and cyber protection.

• The company won the 2024 Organizational Innovation Award and continued to support social projects.

Financial highlights

• Total revenues rose to NIS 151.5 million in 2024 from NIS 134.9 million in 2023, a 12% increase year-over-year.

• Operating profit increased to NIS 55.6 million from NIS 42.0 million, up 32% year-over-year.

• Net income attributable to shareholders was NIS 50.9 million, up from NIS 38.2 million in 2023.

• EBITDA (excluding equity compensation) reached NIS 67.1 million, compared to NIS 53.5 million in 2023.

• Cash and cash equivalents at year-end were NIS 44.1 million, with total liquid assets (including deposits and securities) at NIS 191.9 million.

• Dividend of NIS 25 million was distributed in 2024; a NIS 30 million dividend (59% of 2024 profits) was approved for 2025.

Outlook and guidance

• The company expects continued investment in growth engines and modernization, with separation expenses from Masav projected to rise to NIS 14-15 million in 2025.

• Strategic plan for 2023-2025 focuses on expanding product offerings, digital transformation, and deepening collaborations.

• The company anticipates additional expenses for cyber protection and business continuity due to increased threats.

• Economic recovery is expected to continue, with private consumption forecasted to grow by 7.5% in 2025.