Automatic Bank Services Limited (SHVA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was ₪39.4m, operating income ₪15.6m and net income ₪15.5m, compared with ₪35.9m, ₪11.6m and ₪8.7m, respectively, in Q3 2023.

• For 9M 2024, revenue reached ₪134.9m and net income ₪38.2m, versus ₪100.4m and ₪28.9m in 9M 2023; growth reflected higher transaction- and infrastructure-based revenue and tariff updates.

• Operations continued without material disruption from the war; management said it did not expect a near-term effect on financial resilience.

Financial highlights

• Q3 revenue rose to ₪39.4m from ₪35.9m; operating expenses were ₪23.8m versus ₪24.3m, and operating income was ₪15.6m versus ₪11.6m.

• Q3 net income was ₪15.5m versus ₪8.7m; net finance income was ₪3.7m versus ₪0.1m, including a favorable swing in securities-related finance income.

• 9M revenue was ₪134.9m versus ₪100.4m; operating income was ₪42.0m versus ₪33.7m, and net income was ₪38.2m versus ₪28.9m.

• 9M net cash from operating activities was ₪31.7m versus ₪23.6m; investing activities used ₪27.5m versus ₪7.4m, while financing activities used ₪24.3m versus ₪23.7m.

Outlook and guidance

• An ATM cross-deposit solution is being designed with system participants following a June 2024 Bank of Israel directive; implementation was expected by year-end 2024.

• Contactless support for closed-loop payment club cards was shifted to 2025 due to implementation complexity, with Mastercard and the first Israeli CLP operator involved.

• Mastercard enriched transaction data entered a nine-month pilot; a separate service providing approval or decline recommendations was also being developed.