Nuam (NUAM) Q3 2024 earnings summary

Executive summary

• Third quarter and year-to-date results exceeded expectations, with revenue up 15% and net profit up 23% year-over-year, driven by a resilient and diversified business model.

• Integration project remains on schedule, with phased deployment of trading and clearing platforms across Chile, Peru, and Colombia starting mid-2025, and harmonized trading rules submitted to regulators.

• Final adjustments to the purchase price allocation (PPA) from last year’s merger completed, reducing future depreciation and amortization expenses.

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

• Positive recognition received for innovation, and progress made toward index eligibility in Chile.

Financial highlights

• Year-to-date revenue reached $111.7 million, up 15% year-over-year, with EBITDA at $50.4 million (45% margin) 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 due to an exceptionally strong Q2.

• Operating expenses year-to-date were $71.9 million, up 9% mainly due to PPA adjustment.

• Revenue for Jan–Sep 2024 reached M$104,718,476, up 32% year-over-year, driven by growth in compensation, liquidation, and negotiation lines.

• EBITDA margin improved to 45% year-to-date from 40% last year.

Outlook and guidance

• Continued focus on deploying integrated market technology in 2025, with full benefits and synergies expected from 2026.

• Dividend payout policy set at 50% of profits for 2024 and 2025, with a return to higher payouts expected post-investment phase.

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

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

• Anticipates improved market conditions with potential for increased issuance and trading volumes if interest rates decline.