Taaleri (TAALA) Q3 2024 earnings summary

Executive summary

• Q3 2024 results were strong, with income rising 65% year-over-year to EUR 21.6 million, mainly driven by a significant earn-out from the sale of the renewable energy project development portfolio and robust investment income, despite a 6% drop in continuing earnings.

• Operating profit surged 158% to EUR 14.7 million, with a margin of 67.9%.

• Earnings per share for the first nine months reached EUR 0.76, up from EUR 0.67 in the prior year period.

• Assets under management remained stable at EUR 2.6 billion.

• Fundraising for Taaleri SolarWind III Fund progressed, with commitments reaching EUR 470 million by October.

Financial highlights

• Q3 2024 income: EUR 21.6 million (+65% y/y); operating profit: EUR 14.7 million (+158% y/y); EPS: EUR 0.39 (Q3 2023: 0.16).

• 9M 2024 income: EUR 50.6 million (+3.9% y/y); operating profit: EUR 28.6 million (+14.6% y/y); EPS: EUR 0.76 (9M 2023: 0.67).

• Operating margin for Q3 was 68%.

• Equity stood at EUR 207.3 million, with a strong equity ratio of 68.7%.

• Dividend of EUR 1.00 per share paid in April 2024.

Outlook and guidance

• Renewable energy business expected to see positive continuing earnings for the rest of the year, but profit depends on timing of exits and performance fees, which may be postponed to 2025.

• Other private asset management segments expected to post negative results for the year due to investments in growth and internationalization.

• Garantia's continuing earnings expected to fall slightly versus 2023, but investment income could remain strong if markets hold or interest rates decline.

• Group cost level to remain stable; long-term targets: ≥15% growth in continuing earnings and performance fees, ≥15% ROE, ≥50% dividend payout.

• No extraordinary distributions planned; dividend policy remains to distribute at least half of annual earnings.