Automatic Bank Services Limited (SHVA) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached a record NIS 151.5m; operating profit rose 32% to NIS 55.6m, and net income increased to NIS 50.9m.

• Payment infrastructure activity recovered through 2024 despite the ongoing conflict; card-system transactions increased to 2.388bn from 2.174bn YoY.

• Strategy centers on scaling Shva Arena and Shva Insights, modernizing core systems, expanding customers and services, and strengthening cyber resilience.

Financial highlights

• FY24 revenue was NIS 151.458m, up from NIS 134.919m in 2023; revenue from card companies was NIS 130.829m and from other services NIS 20.629m.

• Operating profit was NIS 55.601m versus NIS 41.968m; net income was NIS 50.905m versus NIS 38.216m; basic and diluted EPS was NIS 1.27 versus NIS 0.96.

• Net finance income was NIS 9.358m versus NIS 6.696m, including NIS 8.482m from marketable securities, net.

• Q4 revenue was NIS 36.801m, operating profit NIS 13.507m and net income NIS 12.101m.

• Adjusted EBITDA, excluding equity-based compensation, was NIS 67.111m in 2024 versus NIS 53.527m in 2023.

Outlook and guidance

• 2025 priorities are accelerating deployment of new services, extending partnerships and product reach, and completing core-system modernization during the year.

• Separation-related recurring expenses are estimated at NIS 14–15m in 2025 and NIS 17m annually after separation completion, currently planned for June 2029.

• The core modernization project is estimated at NIS 10m and is expected to finish in 2025; additional cyber investment is planned beyond the original budget.

• New growth engines are expected to diversify revenue and customers, though adoption and revenue growth may take time and require ongoing technology adjustments.