eQ (EQV1V) Q4 2023 earnings summary

Executive summary

• FY23 net revenue was €70.9m vs €77.8m, down 9%; operating profit fell 13% to €39.7m and profit for the period fell 13% to €31.5m.

• Q4 net revenue rose 36% YoY to €18.5m; operating profit increased 56% to €9.8m and profit for the period rose 57% to €7.8m.

Financial highlights

• FY23 EPS was €0.78 vs €0.91; the proposed dividend was €0.80/share vs €1.00/share.

• Asset Management fee income declined 7% to €67.5m: management fees rose 1% to €62.0m, while performance-based fees fell 50% to €5.4m.

• FY expenses and depreciation totaled €31.1m vs €32.0m; personnel expenses declined to €25.4m from €26.7m, mainly due to lower result-related remuneration.

• Q4 EPS was €0.19 vs €0.12; year-end liquid assets were €33.4m, including €22.9m in liquid assets and €10.5m in liquid mutual fund investments.

Outlook and guidance

• Long-term Finnish asset management growth prospects remain positive, with traditional and discretionary asset management supported by investment returns.

• Real estate funds are expected to face another challenging year in 2024; Private Equity sales remain strong, with performance fees expected to grow from 2025 as products enter performance-fee stages.

• Asset Management disclosures will generally describe qualitative outlook rather than segment forecasts; Corporate Finance and Investments results remain dependent on external factors.