Equita Group (EQUI) Q2 2024 earnings summary

Executive summary

• Net revenues for 1H 2024 reached €40.9 million, down 5% year-over-year, with net profit at €8.1 million, up 1% year-over-year, and ROTE at 25%, supported by a strong 2Q performance.

• EQUITA maintained a leading position in Italian brokerage, completed the first closing of the Equita Green Impact Fund (EGIF) at €100 million, and acquired full ownership of Equita Mid Cap Advisory.

• 2Q 2024 net profit rose 19% year-over-year and 65% sequentially, reflecting improved market conditions.

• Return on Tangible Equity (ROTE) improved to 25% from 23% in 1H'23, reflecting operational efficiency.

• Recent achievements include large M&A mandates, strong DCM performance, and successful fundraising for new alternative asset management products.

Financial highlights

• Consolidated net revenues were €40.9 million in 1H 2024 (down 5% YoY), with net profit at €8.1 million (+1% YoY), and a cost/income ratio of 71.8%.

• Personnel and operating costs decreased by 6% year-over-year in 1H 2024, supporting profitability.

• Adjusted net profit for 1H 2024 was €8.1 million, down 7% year-over-year, excluding non-recurring items.

• Cash and cash equivalents stood at €90.5 million as of June 30, 2024.

• Shareholders’ equity was €97.7 million at 1H 2024.

Outlook and guidance

• Management expects further interest rate declines and improved capital markets in 2H 2024, with increased M&A activity and gradual reopening of equity capital markets.

• FY 2024 results are expected to align with shareholder remuneration targets, with significant improvement anticipated from 2025.

• Growth in AuM and AM fees projected, driven by new fundraising and first carried interest on private debt funds from 2025.

• The Group aims to expand Global Markets into new venues and broaden Investment Banking services.

• Economic and financial results for the second half of 2024 will depend on market and macroeconomic developments.