Azimut Holding (AZM) Q3 2024 earnings summary

Executive summary

• Net inflows reached €14.3 billion as of 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 international expansion.

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

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

Financial highlights

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

• EBIT reached €458 million with a margin of 43.5%, stable versus the prior year.

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

• Net financial income surged to €172 million, mainly due to a one-off gain from the sale of a 20% stake in Kennedy Lewis Investment Management.

• Total assets under management and custody rose to €108 billion by October, with over 70% of inflows directed to managed products.

Outlook and guidance

• Full-year adjusted net profit is expected between €550 million and €600 million, contingent on market conditions and the closing of the Australian transaction.

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

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

• Recruitment activity for financial advisors is expected to return to a target of 120–150 annually as internal reorganization stabilizes.