Nexi (NEXI) Q2 2024 earnings summary

Executive summary

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

• EBITDA increased 8% year-over-year, with margin expansion of 97 bps, driven by operating leverage and cost synergies.

• Excess cash generation accelerated to €383 million in H1, up 42% year-over-year, supporting debt reduction and shareholder returns.

• €500 million share buyback program launched and accelerated for completion in 2024, with over €180 million repurchased by end of Q2.

• Continued deleveraging with net debt/EBITDA at 2.8x as of June 2024 (2.7x pre-buyback effect).

Financial highlights

• Net revenues reached €1,660.5 million in H1 2024, up 5.9% year-over-year; Q2 revenues were €878.9 million, up 5.8%.

• EBITDA for H1 2024 was €827.1 million, up 8% year-over-year, with a 50% margin (+97 bps year-over-year).

• Normalised net profit for H1 2024 was €300.6 million, up 3.4% year-over-year.

• CapEx decreased 15% year-over-year to €196 million, reducing capex intensity to 12% of net revenues.

• Integration and transformation costs fell 30% year-over-year; non-recurring items below EBITDA totaled €188.7 million, including €134.8 million in severance 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 to decrease below 2.9x by year-end, or ~2.6x on an organic basis.

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