Nuam (NUAM) Q4 2024 earnings summary

Executive summary

• Achieved strong full-year 2024 results, exceeding expectations in the first year of integrated operations across three countries, driven by a diversified business model and efficient cost management.

• 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.

• Revenue reached $147.6 million, EBITDA $64.9 million, and net profit $38.1 million, with 13% revenue growth and 22% net profit growth year-over-year.

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

• Announced inclusion in the IGPA index, increased analyst coverage, and new market makers to improve stock liquidity.

Financial highlights

• Full-year 2024 revenue: $147.6M (+13% YoY); EBITDA: $64.9M (+28% YoY); Net profit: $38.1M (+22% YoY).

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

• Expenditures rose 2% to $95.3 million; adjusted operating expenses up 2% YoY, reflecting cost control.

• Q4 was softer due to market activity and FX depreciation, especially in Colombia; 4Q24 net profit fell 46% QoQ.

• One-off tax event in Peru reduced net profit by $2.7 million.

Outlook and guidance

• 2025 will be a transition year with double system license costs, limiting EBITDA margin improvement.

• CapEx for 2025 estimated at CLP 20 million, down from CLP 28 million in 2024.

• Dividend payout ratio to increase from 50% to 70% as major integration investments conclude.

• Regulatory approvals for integrated market expected in stages through mid-2025; key technology launches on track.

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