Equita Group (EQUI) Q4 2023 earnings summary

Executive summary

• FY23 net revenues rose 2% to €87.5m; reported net profit increased 5% to €16.1m and adjusted net profit rose 5% to €16.9m.

• 4Q23 net revenues increased 27% to €28.1m; adjusted net profit rose 106% YoY to €6.4m.

• Results showed resilience in a challenging investment banking market, with improved revenue visibility and continued investment in growth and diversification.

Financial highlights

• Client-linked net revenues were €76.7m, down 7% reported but up 7% excluding the significant 2Q22 mandate.

• Profit before taxes was €24.1m, down 5%; adjusted net margin was 19%, in line with FY22.

• Other operating costs rose 15% to €21.5m, including €0.8m of one-off 2Q23 expenses, mostly for marketing, communications and 50th-anniversary events.

Outlook and guidance

• Management expects gradual market improvement from 2H24, with cautiously positive expectations for brokerage, Capital Markets and M&A activity.

• The Investment Banking pipeline included €40bn of announced but unclosed Italian transactions.

• First closings of EQUITA Green Impact Fund and EQUITA Private Debt Fund III were expected by end-1H24 despite difficult fundraising conditions for new illiquid products.

• Investments in funds, senior hires, fixed-income and derivatives capabilities, research, IT and brand visibility are intended to support growth.