Meitav Investment House (MTAV) Q1 2024 earnings summary

Executive summary

• Q1 revenue including nostro rose 13% YoY to ₪366m; adjusted EBITDA increased 23% to ₪116m, and AUM grew 7% to ₪287.2bn.

• Reported revenue was ₪360m versus ₪319m in Q1 2023; operating profit was ₪91m versus ₪75m.

• Net income reached ₪57m and profit attributable to shareholders was ₪50m, versus ₪26m and ₪18m, respectively, in Q1 2023.

• Assets under management expanded across savings and investment activities; a proposed transfer of Meitav Loans and Lotus to Peninsula remained uncertain.

Financial highlights

• Reported revenue of ₪360m comprised ₪297m from management fees, commissions and other income and ₪63m from non-bank credit financing; operating expenses were ₪239m.

• Adjusted EBITDA was ₪116m versus ₪94m; reported EBITDA was ₪113m, including ₪12m net financing expenses and ₪24m depreciation and amortization.

• Profit before tax was ₪77m versus ₪48m; net profit excluding legal-claim provisions was ₪63m versus ₪34m in Q1 2023 and ₪52m in Q4 2023.

• Operating cash flow was ₪128m versus a ₪14m outflow in Q1 2023; investing cash flow was a ₪35m inflow and financing cash flow was a ₪28m inflow.

Outlook and guidance

• Long-term savings revenue run rate exceeded ₪560m annually; pension funds received monthly deposits above ₪560m.

• Long-term savings AUM reached ₪136bn by mid-May 2024, up from ₪132.2bn at March 31, 2024.