DDM (DDM) Q3 2024 earnings summary

Executive summary

• Gross ERC increased to EUR 310m at September 2024, up from EUR 280m at December 2023, reflecting portfolio additions and active asset management.

• Adjusted gross collections for Q3 2024 were EUR 13.8m, up EUR 4.7m year-over-year; adjusted net collections reached EUR 11.0m.

• Cash EBITDA for Q3 2024 was EUR 8.3m, more than double the prior year’s EUR 3.8m; operating profit for the quarter was EUR 2.3m.

• Net loss for Q3 2024 was EUR 2.5m, an improvement from a EUR 4.4m loss in Q3 2023.

• Erik Fällström appointed CEO, replacing Razvan Munteanu.

Financial highlights

• Q3 2024 gross collections: EUR 12.3m (Q3 2023: EUR 5.2m); net collections: EUR 9.1m (Q3 2023: EUR 4.1m).

• Nine months 2024 gross collections: EUR 31.3m (2023: EUR 27.0m); net collections: EUR 25.5m (2023: EUR 23.4m).

• Adjusted cash EBITDA for Q3 2024: EUR 8.3m (Q3 2023: EUR 3.8m); nine months: EUR 20.0m (2023: EUR 22.0m).

• Total assets at 30 September 2024: EUR 259.0m; net debt: EUR 168.9m; equity ratio: 15.5%.

• Cash flow from operating activities before working capital changes in Q3 2024: EUR 6.8m (Q3 2023: EUR 4.1m).

Outlook and guidance

• Credit and refinancing risks, especially in commercial real estate, may drive increased loan portfolio sales.

• Banks in SCEE region expected to maintain steady NPL portfolio deal flow due to healthy capital adequacy.

• Company will continue to monitor investment opportunities and actively manage its portfolio.