Nexi (NEXI) Q2 2024 earnings summary

Executive summary

• Revenue grew 5.9% year-over-year in H1 2024 to €1,660.5 million, with Merchant Solutions up 7% and double-digit e-commerce growth.

• EBITDA increased by 8.0% to €827.1 million, with margin expansion of 97 bps to around 50%.

• Excess cash generation accelerated to €383.4 million in H1, up 42% year-over-year, supporting debt reduction and shareholder returns.

• Net loss of €32.6 million in H1 2024, mainly due to non-recurring restructuring and severance costs.

• Launched and accelerated a €500 million share buyback program, with over €200 million repurchased by July 2024.

Financial highlights

• H1 2024 revenues reached €1,660.5 million (+5.9% year-over-year); Q2 revenues were €878.9 million (+5.8%).

• EBITDA for H1 2024 was €827.1 million (+8.0%), with margin at 50% (+97 bps year-over-year).

• Capex for H1 2024 was €196 million, down 15% year-over-year, with capex intensity at 12% of revenues.

• Normalised net profit for H1 2024 was €300.6 million (+3.4% year-over-year); reported net loss was €32.6–32.8 million due to non-recurring items.

• Non-recurring items totaled €188.7–203 million, mainly from severance and integration costs.

Outlook and guidance

• 2024 guidance confirmed: mid-single-digit revenue growth, mid-to-high single-digit EBITDA growth, margin expansion of at least 100 bps, and excess cash generation above €700 million.

• Net leverage targeted below 2.9x EBITDA by year-end, or ~2.6x on an organic basis.

• Medium-term targets: organic cash generation of ~€1 billion by 2026 and leverage of 2.0x–2.5x EBITDA.