Moltiply Group (MOL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 12.9% year-over-year to €106.9 million, and for the nine months ended September 30, 2024, increased 10.4% to €322.2 million, with both Mavriq (Broking) and BPO & Tech divisions contributing to growth.

• EBITDA for Q3 2024 was €28.3 million, up 12.7% year-over-year; for the nine months, EBITDA rose 8.2% to €83.8 million.

• Operating income (EBIT) for Q3 was €16.3 million, down 0.2% year-over-year, and for the nine months, €48.0 million, down 6.2%, mainly due to higher depreciation and amortization from acquisitions.

• Net income for Q3 2024 was €9.6 million, down 14.9% year-over-year; for the nine months, net income was €29.7 million, down 2.0% year-over-year.

• Both divisions exceeded management expectations, with Mavriq benefiting from insurance, e-commerce, telco/energy, and mortgage recovery, and BPO & Tech driven by Lease and Claims.

Financial highlights

• Mavriq division Q3 revenues were €53.8 million, up 14.2% year-over-year; nine months up 15.2% to €157.0 million.

• BPO & Tech division Q3 revenues grew 11.7% to €53 million; nine months up 6.3% to €165.1 million.

• Q3 EBITDA margin was 26.5% for the group; Mavriq 9M EBITDA margin was 29.5%, BPO & Tech 9M margin was 22.2%.

• Net financial position as of September 30, 2024, was negative €320.9 million, reflecting acquisition outflows and dividend payments.

• Personnel and service costs increased due to acquisitions and higher headcount.

Outlook and guidance

• Favorable trends are expected to continue into Q4 2024, with Pricewise consolidation providing additional benefit.

• 2025 outlook is positive, with anticipated continued recovery in the mortgage market and strong commercial interest across services.

• BPO & Tech division anticipates full-year 2024 results to exceed 2023 in both revenues and operating margins, driven by Lease and Claims.

• Full-year 2024 is now expected to show year-on-year growth, contrary to earlier expectations of flat results.