doValue (DOV) Q4 2023 earnings summary

Executive summary

• FY23 gross revenue was €485.7m, down 13.0% YoY; adjusted EBITDA was €178.4m, down 11.5% reported and 4.1% excluding Sareb.

• Year-end managed GBV was €116.4bn, down 3.4% YoY; €10.6bn of new GBV was secured or onboarded.

• Leverage was 2.7x, within the 2.0–3.0x target range; the 2024–2026 business plan was scheduled for presentation on 21 March 2024.

Financial highlights

• Net revenue was €443.2m, down 11.4%; excluding Sareb, gross and net revenue fell 4.6% and 4.4%, respectively.

• Q4 adjusted EBITDA was €63m, up 26.6% YoY, with a 43.2% margin; Q4 gross revenue rose 13.5% to €151m.

• Attributable net loss was €18.9m; attributable net income excluding non-recurring items was €2.7m, versus €50.6m in FY22.

• Collections totaled €4.9bn, down 10.0% reported and up 5.1% excluding Sareb; collection rate increased to 4.6% from 4.1%.

• Operating cash flow was €79.4m and capex €21.3m; free cash flow before dividends and equity investments was €28.5m.

Outlook and guidance

• 2024 was positioned as a transformation year focused on cost rationalization and investment to prepare for growth in 2025–2026; full savings effects were not expected in H1.

• A potential Southern European servicing-mandate pipeline of €40bn was identified over the next 18 months, including secondary transactions.

• Primary deal completions could slow as banks’ sound balance sheets reduce urgency, challenging a return to growth in 2024.

• The 2024–2026 plan, including dividend policy, was scheduled for presentation at the 21 March 2024 Capital Markets Day.