Moltiply Group (MOL) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue rose 30.1% to €404.2m and EBITDA rose 22.2% to €108.2m; EBIT fell 5.2% to €63.1m and net income fell 25.6% to €35.4m.

• Growth in Broking and BPO was partly acquisition-driven; higher purchase-price-allocation amortization and financial expenses weighed on earnings.

Financial highlights

• FY revenue €404.2m, +30.1%; EBITDA €108.2m, +22.2%; EBIT €63.1m, -5.2%; net income €35.4m, -25.6%.

• Q4 revenue €112.5m, +33.3%; EBITDA €30.7m, +35.6%; EBIT €12.0m, -22.0%; net income €5.1m, -43.7%.

• FY financial expenses rose to €15.8m from €4.9m; losses on financial assets and liabilities were €4.4m versus €3.7m in gains in 2022.

• Net income before tax was €50.1m versus €65.8m; basic EPS €0.93 versus €1.24 and diluted EPS €0.91 versus €1.22.

• Operating cash flow was €93.4m versus €62.0m; investing activities absorbed €148.0m and financing activities absorbed €56.9m.

Outlook and guidance

• FY 2024 Broking growth expected across lines except E-Commerce Price Comparison; full enforcement of the Digital Markets Act could improve that line's outlook.

• Lower mortgage rates are expected to support gradual recovery in mortgage demand, brokered volumes and Mortgage BPO activity.

• BPO management expects slight FY 2024 revenue and EBITDA growth; Ecobonus activity is expected to fade, with differing trends across business lines.

• Loans BPO expects continued, slower growth; Insurance BPO expects to sustain 2023 revenue and margin levels while recovering percentage margins.