Azimut Holding (AZM) Q3 2024 earnings summary

Executive summary

• Net inflows reached €14.3 billion by October 2024, more than doubling year-over-year and surpassing the full-year target, reflecting strong client activity and market performance.

• Adjusted net income for the first nine months was €447 million, up 28% year-over-year, driven by strong operating activity, capital gains, and client performance.

• Strategic developments included the first exit from the GP staking business, a major partnership with Oaktree in Australia, and the reorganization of the Italian FA network to launch a digital bank.

• Total assets under management and custody rose to approximately €108 billion by October, with half from international clients.

• Strong organic growth in Italy and international expansion, including acquisitions and advisor recruitment, supported results.

Financial highlights

• Total revenues increased 9% year-over-year to €1,054 million, with recurring management fees rising to €898 million and insurance income up to €116 million.

• EBIT grew 6% to €458 million, maintaining a 43.5% margin.

• Adjusted net profit margin improved to 61 basis points, up 6bps year-over-year.

• Performance fees and insurance revenues saw significant increases, with performance fees from foreign operations exceeding €15 million.

• Net financial position improved to €661 million, with gross cash exceeding €1.1 billion.

Outlook and guidance

• Confident to exceed the €500 million net profit target for 2024, projecting €550–600 million, contingent on market conditions and regulatory approvals.

• Net inflows target of €14 billion for 2024 was already exceeded by October.

• Deposit-raising for the new digital bank is targeted at €7.5–10 billion over the coming years, leveraging the advisor network.

• Recruitment activity for financial advisors in Italy is expected to return to 120–150 annually as reorganization stabilizes.

• Continued focus on international expansion, digital banking, and private markets growth.