doValue (DOV) Q3 2024 earnings summary

Executive summary

• Achieved €8 billion GBV from new business ahead of schedule, meeting or exceeding the annual target and reinforcing market leadership in Southern Europe.

• EBITDA excluding non-recurring items reached €96 million, above management expectations.

• Confirmed 2024 guidance and progressing with Gardant acquisition, expected to close in Q4 2024, with integration plans and rights issue in place.

• Secured €526 million refinancing package, supporting Gardant transaction and future flexibility.

• Strategic focus on revenue diversification, with over 55% of new mandates in 2024 from non-NPL assets.

Financial highlights

• Gross revenues for nine months at €314 million, down 5.4% year-on-year, mainly due to delayed sales in Greece and lower REO revenues in Spain.

• EBITDA ex-NRIs at €96 million, down 18.3% year-on-year, with margin at 30.5%.

• Net income ex-NRIs at €5 million; reported net income at €10.3 million, positively impacted by Spanish tax claims.

• Operating expenses stable at €187 million, with strong cost discipline and 18% reduction in Spain.

• Net debt at €494.5 million, leverage at 3.1x EBITDA, reflecting seasonal trends.

Outlook and guidance

• 2024 guidance confirmed: EBITDA €155–165 million, gross revenues €460–480 million, GBV around €115 billion.

• Gardant expected to add €22 billion GBV, €139 million gross revenues, and €50 million EBITDA in 2024; synergies of €15 million targeted by 2026.

• 2026 targets: €8 billion GBV new business per annum, €605–625 million gross revenues, EBITDA margin ~40%.

• Free cash flow after interest expected at €35–40 million, with leverage targeted at 1.3–1.5x EBITDA (excluding dividends).

• Pipeline of potential servicing mandates for the next 18 months estimated at €33 billion across Southern Europe.