eQ (EQV1V) Q3 2024 earnings summary

Executive summary

• Net revenue for Jan–Sep 2024 was €50.9m, down 3% year-over-year; Q3 revenue was €16.7m, up 1% from Q3 2023.

• Operating profit for Jan–Sep 2024 declined 8% to €27.6m; Q3 operating profit was €9.6m, down 6% year-over-year.

• Profit for the period was €21.9m for Jan–Sep 2024, an 8% decrease year-over-year; Q3 profit was €7.6m, down 6%.

• Earnings per share for Jan–Sep 2024 was €0.53, down 9% year-over-year; Q3 EPS was €0.18, down 8%.

• Assets under management grew 3% since year-end to €13.3bn.

Financial highlights

• Cost/income ratio rose to 45.7% for Jan–Sep 2024 (42.6% in 2023); Q3 ratio was 42.8% (38.5% in Q3 2023).

• Market capitalisation at 30 September 2024 was €581.8m, down from €634.8m at end-2023.

• Liquid assets increased 29% to €29.0m at the end of Q3 2024.

• No interest-bearing loans as of 30 September 2024.

• Group net fee and commission income for Jan–Sep was €49.8m, down from €51.5m year-over-year.

Outlook and guidance

• Long-term growth outlook for asset management in Finland remains positive.

• 2024 expected to be challenging for real estate funds due to higher yields and property value declines.

• Private Equity product sales remain strong, with anticipated growth in performance fees from 2025.

• Traditional asset management has strong growth potential, though subject to short-term market variation.