Nuam (NUAM) Q4 2024 earnings summary

Executive summary

• Achieved strong full-year 2024 results, with revenue up 13% and net profit up 22% year-over-year, driven by a diversified business model, efficient cost management, and the first year of integrated operations across three countries.

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

• Integration of three companies and 18 subsidiaries was a major operational milestone, building a unified corporate culture and regulatory relationships.

• All core business lines posted double-digit revenue growth, despite a softer fourth quarter due to lower market activity and FX depreciation, especially in Colombia.

• Focused on advancing the integrated market project, with significant regulatory progress and a busy implementation schedule for 2025.

Financial highlights

• Full-year 2024 revenue reached $147.6 million, up 13% year-over-year; EBITDA was $64.9 million, up 28%; net profit was $38.1 million, up 22%.

• EBITDA margin improved to 44% from 39% year-over-year; net margin rose to 26% from 24%.

• Q4 was softer due to market activity and FX depreciation, especially in Colombia; one-off tax event in Peru reduced net profit by $2.7 million.

• Expenditures increased 2% to $95.3 million, mainly due to depreciation allowances from PPA; adjusted operating expenses up 2% YoY.

• Ordinary revenues for 2024 reached M$139,199,071, a 27% increase year-over-year, with operating income at M$44,908,755 and net income attributable to controlling interests at M$32,143,002.

Outlook and guidance

• 2025 will be a transition year with double system license costs (~$4 million), limiting EBITDA margin expansion.

• CapEx for 2025 is budgeted at $20 million, down from $28 million in 2024, with $12 million for integration projects.

• Dividend payout ratio to increase from 50% to 70% as major investments conclude, with higher dividends expected in 2026.

• Continued focus on regulatory approvals and integrated market launch by June 2025; strategic planning and adherence to international standards support resilience.

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