doValue (DOV) Q2 2024 earnings summary

Executive summary

• H1 2024 EBITDA reached €67.4 million (excluding non-recurring items), exceeding internal expectations but down 15.7% year-over-year, with strong new business intake and positive cash flow dynamics.

• Gross revenues for H1 2024 were €216.6 million, down 5.5% year-over-year, with net revenues at €194.0 million, a 7% decrease.

• Net income including non-recurring items rose to €15.5 million, up from €4.3 million in H1 2023, while adjusted net profit was €6.9 million, down 58.9% year-over-year.

• Gross Book Value (GBV) under management increased to €117.7 billion, with €4.5 billion in new mandates and forward flows, keeping the group on track for its annual new business target.

• The Group signed a binding agreement to acquire Gardant, aiming to consolidate its leadership in the Italian market and accelerate its 2024–2026 Industrial Plan, with closing expected in Q4 2024.

Financial highlights

• Gross revenues for H1 2024 were €216.6 million, down 5.5% year-over-year; net revenues at €194.0 million, down 7%.

• EBITDA excluding non-recurring items was €67.4 million, down 15.7% year-over-year; EBITDA margin at 31.5%.

• Net income including non-recurring items was €15.5 million, while adjusted net profit was €6.9 million.

• Net financial position at -€479.4 million as of June 2024, with liquidity buffer of €192.9 million including credit lines.

• Free cash flow for H1 2024 was -€1.8 million, with net cash flow improving to €37.6 million in Q2.

Outlook and guidance

• 2024 gross revenues guidance revised to €460–480 million, with EBITDA guidance at €155–165 million and net leverage expected at 2.8–3.0x.

• GBV target of €115 billion confirmed, with a robust pipeline of €37–38 billion in potential mandates for 2024–2025.

• Gardant acquisition expected to close in Q4 2024, with negligible P&L impact in 2024 and full balance sheet effects at closing.

• The 2024–2026 Industrial Plan targets revenue diversification (35–40% from non-NPL businesses) and leverage reduction to 2.1–2.3x by 2026.

• Forecasting operating cash flow of €130 million and free cash flow of €90–130 million by 2026.