eQ (EQV1V) Q2 2024 earnings summary

Executive summary

• Net revenue for H1 2024 was €34.2m, down 4% year-over-year; operating profit fell 9% to €18.1m; profit for the period decreased 9% to €14.3m.

• Earnings per share declined 10% to €0.35; cost/income ratio increased to 47.1% from 44.4% year-over-year.

• Asset Management segment net revenue fell 12% to €30.3m; operating profit down 18% to €17.4m; Corporate Finance revenue rose 232% to €2.9m, operating profit to €1.0m.

• Real estate funds faced challenges from higher yields and negative net subscriptions; Private Equity product sales remained strong.

• Assets under management increased 3% to €13.2bn.

Financial highlights

• Net revenue for Q2/2024 was €17.7m, down 2% from Q2/2023; operating profit for Q2/2024 was €9.3m, down 6%.

• Group net fee and commission income was €33.2m, down from €35.2m year-over-year.

• Liquid assets at period end were €19.8m, up 55% year-over-year.

• No interest-bearing liabilities at period end; equity to assets ratio was 62.7%.

• Market capitalization at 30 June 2024 was €575.6m, down from €634.8m at year-end 2023.

Outlook and guidance

• Long-term growth outlook for asset management in Finland remains positive; Private Equity allocations expected to support growth.

• 2024 expected to be challenging for real estate funds due to higher yields and property value declines; performance fees anticipated to grow from 2025.

• Traditional asset management seen as having strong future growth potential, despite short-term market-driven variation.