Nuam (NUAM) Q1 2024 earnings summary

Executive summary

• Achieved 18% year-over-year revenue growth to USD $35.9 million, with 85% from non-trading revenues, up 20% YoY.

• Completed a major regional merger in November 2023, consolidating control over the stock exchanges of Chile, Colombia, and Peru, and several key subsidiaries.

• EBITDA rose 29% YoY to USD $16.2 million, with margin improving to 45% from 41% in 1Q23.

• Net profit declined 82% YoY to USD $1.5 million, mainly due to a temporary tax provision related to exchange rate fluctuations.

• Corporate integration completed, with ongoing IT projects and dividend payments.

Financial highlights

• Ordinary revenues for Q1 2024 reached M$33,925,219, a 38% increase year-over-year compared to proforma Q1 2023.

• EBITDA margin improved to 45% from 41% YoY.

• Net margin dropped to 4% from 28% YoY, impacted by tax provisions.

• Operating expenses (adjusted) increased 12% YoY, in line with projected synergies.

• 1Q24 balance sheet shows assets at USD $637.1 million, down 2% from 4Q23.

Outlook and guidance

• Projects for launching a single market in 2Q25 are on track.

• Measures are being implemented to mitigate the impact of exchange rate-related tax provisions by year-end.

• Strategic focus remains on integration, operational efficiency, and leveraging regional synergies.