Meitav Investment House (MTAV) Q2 2022 earnings summary

Executive summary

• AUM totaled NIS 213.2bn at June 30, 2022; Q2 revenue was NIS 288m and adjusted EBITDA was NIS 73m.

• H1 revenue rose 3% YoY to NIS 574m, while reported H1 net loss was NIS 392m amid substantial litigation-related amounts and non-recurring investment and disposal gains.

Financial highlights

• Q2 revenue was NIS 288m, expenses NIS 230m and adjusted EBITDA NIS 73m; H1 adjusted EBITDA was NIS 154m.

• Q2 net income was NIS 22m, including NIS 17m attributable to shareholders; H1 net income was NIS 53m, including NIS 43m attributable to shareholders.

• Excluding legal-claim provisions, profit was NIS 31m in Q2 and NIS 67m in H1; H1 adjusted operating profit was NIS 127m versus NIS 172m YoY.

• H1 management and fee revenue, net, was NIS 454m versus NIS 486m YoY; non-bank credit financing revenue was NIS 102m versus NIS 88m.

• H1 marketing, operating and G&A expenses were NIS 447m versus NIS 384m YoY; Q2 expenses were NIS 230m versus NIS 194m.

Outlook and guidance

• Long-term savings revenue run rate reached NIS 400m, and group revenue annualized run rate exceeded NIS 1bn.

• Quarterly inflows to provident and advanced-training funds continued at more than NIS 3.5bn during 2022.