Evli (EVLI) Q1 2025 earnings summary

Executive summary

• Comparable net revenue rose 7% year-over-year to EUR 27.7 million, driven by strong fund, advisory, and brokerage fees, while unadjusted net revenue fell due to the prior year's one-time corporate transaction gain.

• Adjusted operating profit increased 15% to EUR 11.4 million, but unadjusted profit dropped 55% due to the absence of last year's EUR 14 million valuation gain and lower performance fees.

• Assets under management reached a record EUR 19.0 billion, up from EUR 18.5 billion year-over-year, supported by positive market performance and net subscriptions.

• All business areas experienced growth, with continued positive international sales and robust M&A activity.

• Net subscriptions in traditional mutual funds were EUR 262 million, with international client inflows of EUR 94 million; alternative investment products saw EUR 70 million in new commitments.

Financial highlights

• Adjusted net revenue: EUR 27.7 million (EUR 25.8 million year-ago); unadjusted: EUR 27.7 million (EUR 42.9 million year-ago).

• Adjusted operating profit: EUR 11.4 million (EUR 10.0 million year-ago); unadjusted: EUR 11.4 million (EUR 25.1 million year-ago).

• Net income: EUR 9.0 million (EUR 23.1 million year-ago); earnings per share (diluted): EUR 0.27 (EUR 0.79 year-ago).

• Assets under management: EUR 19.0 billion (EUR 18.5 billion year-ago).

• Capital adequacy ratio: 233.7% of minimum requirement.

Outlook and guidance

• The operating environment is expected to remain uncertain in 2025 due to geopolitical risks, global tariffs, and economic growth concerns.

• Market volatility and declining values may negatively impact fee income and investment returns if investor confidence worsens.

• Despite challenges, a clearly positive operating result is estimated, supported by a strong market position and broad product range.

• Long-term targets include AUM of EUR 30 billion, EBIT margin of 30%, ROE of 25%, and recurring revenue ratio above 130%.