Linedata Services (LIN) H1 2024 earnings summary

Executive summary

• H1 2024 revenue rose 2.5% to €89.7m, driven by growth in Lending & Leasing and improved Asset Management margins.

• Net profit increased 24.4% year-over-year to €10.6m, representing 11.8% of revenue.

• Operating efficiency and business mix improvements contributed to margin expansion.

Financial highlights

• EBITDA reached €22.0m (24.5% of revenue), up 3.8% from H1 2023.

• EBIT grew 12.4% to €15.4m, with margin improving to 17.2%.

• Net profit margin increased by 2.1 pts to 11.8% year-over-year.

• Payroll costs rose 6.0% to €46.3m, reflecting one-off restructuring and R&D expense changes.

• Purchases and external costs fell 4.3% to €19.1m, aided by Asset Management Software mix in the US.

Outlook and guidance

• Management anticipates continued organic revenue growth and solid operating profitability in H2 2024.