doValue (DOV) Q2 2024 earnings summary

Executive summary

• H1 2024 EBITDA reached €67 million, exceeding expectations, with strong new business intake and positive cash flow dynamics.

• Gross revenues for H1 2024 were €216.6 million, down 5.5% year-over-year, with net revenues at €194.0 million, a 7% decrease compared to H1 2023.

• The Group signed a binding agreement to acquire Gardant, aiming to consolidate its leadership in the Italian market and accelerate its 2024-2026 Industrial Plan.

• Perimeter optimization completed with the disposal of Portugal and closure of AdSolum.

• Net profit attributable to shareholders was €15.5 million, up from €4.3 million in H1 2023, but adjusted net profit (excluding non-recurring items) was €6.9 million, down 58.9%.

Financial highlights

• Gross revenues: €216.6 million (-5.5% year-over-year); net revenues: €194.0 million (-7%).

• EBITDA: €65.0 million (-18.5%); adjusted EBITDA: €67.4 million (-15.7%).

• Net income reported at €15.5 million, positively impacted by a €20.1 million tax claim in Spain; adjusted net profit at €6.9 million.

• Net financial position stable at -€479.4 million; liquidity buffer of €192.9 million including credit lines.

• Free cash flow: -€1.8 million (vs. -€2.5 million in H1 2023); net cash flow improved to €37.6 million in Q2 2024.

Outlook and guidance

• 2024 guidance updated: gross revenues €460–480 million, EBITDA ex NRIs €155–165 million, leverage 2.8–3.0x.

• Gardant acquisition expected to close in Q4 2024, enhancing the Group’s position in UTPs and alternative asset management.

• The 2024-2026 Industrial Plan targets revenue diversification (35-40% from non-NPL businesses) and leverage reduction to 2.1–2.3x by 2026.

• Targeting €8 billion in new mandates for 2024, with a robust pipeline of €37 billion over 18 months.

• Forecasting operating cash flow of €130 million and free cash flow of €90–130 million by 2026.