Nuam (NUAM) Q3 2024 earnings summary

Executive summary

• Third quarter and year-to-date results showed strong financial performance, with revenue up 15% and net profit up 23% year-over-year, supported by a resilient and diversified business model.

• Integration projects remain on schedule, with initial deployment of new trading infrastructure targeted for mid-2025 across Chile, Peru, and Colombia, and harmonized trading rules submitted to regulators.

• Final adjustments to the purchase price allocation (PPA) from the merger were completed, reducing future depreciation and amortization expenses and impacting deferred taxes.

• The company received recognition for innovation in Chile and completed the integration of three-country operations in November 2023.

• Pro forma financials reflect the new group structure post-merger, consolidating control over key stock exchanges and subsidiaries in Chile, Colombia, and Peru.

Financial highlights

• Year-to-date revenue reached $111.7 million, up 15% year-over-year, with EBITDA at $50.4 million (margin 45%) and net profit at $30.7 million (up 23%).

• Third quarter revenue was $36.4 million, EBITDA $14.9 million, and net profit $13.8 million, sequentially lower after a strong second quarter.

• Operating expenses increased 12% year-over-year, mainly due to higher depreciation and amortization from PPA adjustments.

• Pro forma Jan–Sep 2024 revenue was M$104,718,476, up 32% year-over-year, with EBITDA at M$47,253,929 and net income at M$26,133,077.

• Operating margin improved to 34% and EBITDA margin to 45% from 40% last year.

Outlook and guidance

• Focus remains on deploying integrated market technology in 2025, with phased rollout to mitigate regulatory risks and full synergy capture expected post-2025.

• Dividend payout policy for 2024 and 2025 is set at 50% of profits, with potential for higher payouts after major investments conclude.

• Integration of risk, compliance, and operational processes across the region aims to enhance efficiency and risk management.

• Regional go-to-market strategy initiated, with phased implementation through 2026.