Nuam (NUAM) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 grew 3% year-over-year to CLP 34.8 billion, driven by trading, value-added services, and strong performance in compensation and liquidation segments.

• Net profit surged 360% year-over-year to CLP 6.6 billion, with net margin rising to 19% from 4%, mainly due to lower FX impact and PPA adjustments.

• EBITDA was CLP 14.4 billion, down 6% year-over-year, with margin at 41% versus 45% last year, impacted by integration-related expenses.

• Dividend per share increased 30% to CLP 181, and profit distribution policy raised from 50% to 70%.

• New board of directors elected, reducing members from 16 to 11.

Financial highlights

• Trading revenues grew 13% year-over-year; non-trading revenues up 1%.

• Value-added services revenue up 21% year-over-year, led by promissory notes and invoice registry.

• Custody revenue down 3% year-over-year, impacted by lower activity and interest rates in Peru.

• EBITDA margin declined to 41% from 45% due to higher integration and staff expenses.

• Listing & Issuer Services revenue fell 8% year-over-year due to fewer extraordinary corporate events.

Outlook and guidance

• No specific EBITDA margin guidance for 2025, but margins expected to remain steady barring major integration changes.

• Integration process expected to bring long-term margin improvement after initial transitory expense increases.

• Regional go-to-market strategy progressing, with operational model approved in Chile and pending in Colombia and Peru.

• Continued focus on technological implementations and integration of regional operations.

• Strategic planning and risk management aligned with international standards to support sustainable growth.