Nexi (NEXI) Q3 2024 earnings summary

Executive summary

• Revenue grew 5.6% year-over-year for the first nine months of 2024, reaching €2,571.6 million, with Merchant Solutions up 6.9% and EBITDA up 7.3%, expanding margin by 82 bps compared to the same period last year.

• 2024 guidance is confirmed: mid-single-digit revenue growth, at least 100 bps EBITDA margin expansion, and excess cash generation above €700 million, despite a complex macroeconomic environment.

• €700 million of debt maturities reimbursed year-to-date; €500 million share buyback completed ahead of schedule in September 2024, with leverage stable at 2.8x.

• Disposal of the Nordic eID business completed on October 31, 2024, and a new €220 million EIB funding agreement signed for digital infrastructure investment.

• Group strategy execution is progressing, with advanced solutions and value-added services driving customer base value growth and efficiency synergies from ongoing integration.

Financial highlights

• Net revenues reached €2,571.6 million for 9M24, up 5.6% year-over-year; 3Q24 net revenues were €911.1 million, up 5.1%.

• EBITDA for 9M24 was €1,349.9 million, up 7.3% year-over-year, with margin at 52% (+82 bps); 3Q24 EBITDA was €522.9 million, up 6.2%.

• Merchant Solutions contributed 57% of group revenues, growing 6.9% year-over-year to €1,477.2 million.

• Issuing Solutions revenues grew 4.3% to €818.1 million; Digital Banking Solutions up 2.8% to €276.3 million.

• Revenue growth was broad-based across geographies: Italy +5.9%, DACH & Poland +2.1%, Nordics +7.8%, SE Europe & Other +5.8%.

Outlook and guidance

• 2024 guidance reaffirmed: mid-single-digit revenue growth, mid- to high-single-digit EBITDA growth, at least 100 bps EBITDA margin expansion, excess cash above €700 million, and net leverage below 2.9x.

• Focus remains on cash generation, margin expansion, and top-line growth, with capital allocation plans to be detailed in February.