DDM (DDM) Q2 2024 earnings summary

Executive summary

• Cash position at June 2023 was EUR 32.6m, down from EUR 52.6m at December 2022, providing flexibility for investments.

• Signed agreement to acquire a Romanian NPL portfolio with gross collection value over EUR 1bn, to be serviced by AxFina.

• Sold 5% stake in Borgosesia S.p.A and associated NPL portfolio, pending regulatory approval.

• Acquired an additional 25% of AxFina, increasing total holding to about 75%.

• Delisting from Nasdaq First North Growth Market confirmed, with last trading day on 15 September 2023.

Financial highlights

• Adjusted gross collections in Q2 2023 were EUR 20.5m, up from EUR 15.8m in Q2 2022; H1 2023 was EUR 30.7m vs EUR 31.9m in H1 2022.

• Adjusted net collections in Q2 2023 reached EUR 18.6m (Q2 2022: EUR 13.8m); H1 2023 was EUR 26.8m (H1 2022: EUR 26.9m).

• Adjusted cash EBITDA for Q2 2023 was EUR 11.7m (Q2 2022: EUR 10.9m); H1 2023 was EUR 15.5m (H1 2022: EUR 22.5m).

• Net loss for Q2 2023 was EUR 1.7m, improved from EUR 4.2m loss in Q2 2022; H1 2023 net loss was EUR 3.2m (H1 2022: EUR 5.9m loss).

• Gross ERC at June 2023 was EUR 256m, down from EUR 284m at December 2022.

Outlook and guidance

• Rising bankruptcies and cost-of-living pressures are expected to increase NPL volumes, making the investment market more attractive in late 2023 and H1 2024.

• DDM will remain disciplined in sourcing new business and actively manage its portfolio.