Evli (EVLI) Q2 2024 earnings summary

Executive summary

• Positive development across all business areas despite a challenging market, with strong financial and operational results in H1 2024.

• Net revenue and operating profit rose sharply, driven by a one-time profit from a partnership, positive market trends, and performance-related fees.

• Assets under management reached an all-time high of €18.7 billion, driven by net sales and growth in alternative assets.

• Strategic partnership with Bregal Milestone advanced, with Allshares making key acquisitions in Sweden to expand the incentive business.

• Evli received awards for best fund house in Finland and Sweden, with fund sales weighted towards fixed income and strong domestic sales.

Financial highlights

• Net revenue rose to €72.2 million in H1 2024 from €52.2 million in H1 2023; adjusted net revenue was €55.0 million.

• Operating profit increased to €37.2 million (H1 2023: €19.1 million); adjusted operating profit was €22.2 million.

• Earnings per share (EPS) doubled to €1.10 from €0.52 year-over-year.

• Profit for the period was €32.9 million, up from €15.3 million in H1 2023.

• Return on equity was 37.9% (H1 2023: 22.6%).

Outlook and guidance

• Business environment expected to remain uncertain in 2024 due to geopolitical risks, inflation, and economic growth concerns.

• Operating profit for 2024 is estimated to significantly exceed the previous year's level, supported by one-off corporate arrangement impacts.

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