Azimut Holding (AZM) H1 2024 earnings summary

Executive summary

• Net inflows reached €10 billion in H1 2024, 1.7x higher than H1 2023, marking the second-best half-year in the group's history and outperforming the Italian market, which saw net outflows.

• Adjusted net profit rose 43% year-over-year to €330 million, driven by organic growth and a capital gain from the Kennedy Lewis stake sale.

• Total assets under management surpassed €100 billion for the first time in June 2024, with about 50% raised abroad, reflecting strong international and domestic growth.

• Management expresses high confidence in exceeding the €500 million net profit target for 2024, supported by robust operational performance and global expansion.

• Platform expansion and global business growth led to a 16% increase in AUM and 20% in total assets year-over-year.

Financial highlights

• Total revenues rose 9% year-over-year to €702 million in H1 2024, driven by recurring revenues, performance fees, and insurance revenues.

• EBIT increased 9% to €312 million, maintaining a stable 44% margin.

• Finance income surged due to the Kennedy Lewis transaction, with realized and unrealized gains on investments.

• Net financial position improved to €637 million, supported by asset sales and strong cash generation.

• Cash and cash equivalents rose to €632.9 million at June 2024, from €464.6 million at December 2023.

Outlook and guidance

• Confident in exceeding 2024 targets, with net inflows already above the €7 billion goal and net profit expected to surpass €500 million.

• No new net inflow target set for year-end, but positive flows expected to continue.

• Deposit collection for the new bank to begin in Q3 2024, with ongoing negotiations for a strategic partner and future IPO.

• Continued focus on global expansion, private markets, insurance, fintech, and international profitability, with full bond repayment expected by year-end.

• Management expects continued positive consolidated performance, supported by strong inflows and subsidiary results.