ABC Arbitrage (ABCA) H1 2024 earnings summary

Executive summary

• Net income for HY2024 was €8.9M, up 0.4% year-over-year, with net revenues rising 12.9% to €22.8M and ROE at 11.2%, maintaining over 10% for 59 consecutive half-years.

• Group activity remained resilient despite low market volatility and subdued M&A activity, with a slight improvement in Q2.

• Focus on systematic arbitrage strategies, strong risk management, and in-house technology, with ongoing investments in technology and talent.

• Springboard 2025 plan targets ROE above 10% and cumulative net income of €100M over three years, with increased investments in technology and human resources.

• Earnings per share remained stable at €0.15 for H1 2024.

Financial highlights

• Net revenues for HY2024: €22.8M, up 12.9% year-over-year.

• Net income attributable to equity holders: €8.9M, up 0.4% year-over-year.

• Payroll costs increased to €9.5M, with total costs rising 22.5% to €14.0M, mainly due to investments in technology and personnel.

• Investment services fees and net gains at fair value both grew over 12% year-over-year.

• Equity stood at €158M as of June 30, 2024.

Outlook and guidance

• Springboard 2025 aims for minimum annual ROE of 10% and target ROE of 15%, with a cumulative net income target of €100M over three years.

• Activity pace expected to remain similar to 2023 due to subdued market volatility and transaction levels.

• Minimum distribution of €0.30 per share annually, payout ratio ~80%, with two interim dividends of €0.10 per share each confirmed for October and December 2024.

• Group continues to implement new strategies aimed at long-term growth, maintaining confidence in significant ROE and profitability.

• Group believes it can exceed €30M in results if market parameters revert to 10-year averages.