Tinexta (TNXT) Q2 2024 earnings summary

Executive summary

• Revenues for 1H 2024 reached €203.0 million, up 11.3% year-over-year, driven by Digital Trust and acquisitions, with all business lines contributing to growth.

• Adjusted EBITDA declined 9.1% to €34.4 million, mainly due to ABF's negative contribution, margin compression in Cybersecurity and Business Innovation, and less favorable revenue mix.

• Net financial position increased to €276.9 million, reflecting significant acquisitions (ABF, Lenovys) and dividend distribution.

• Adjusted net profit from continuing operations was €11.9 million, down 37.1% year-over-year; reported net profit was €2.3 million.

• Adjusted free cash flow from continuing operations was €25.8 million, down 12% year-over-year.

Financial highlights

• Adjusted EBITDA was €34.4 million (margin 17.0%), down 9.1% year-over-year; reported EBITDA was €25.5 million, impacted by non-recurring items.

• Adjusted EBIT was €19.5 million, down 30.4% year-over-year; earnings per share from continuing operations was €0.01.

• Net financial position rose to €276.9 million, mainly due to acquisitions and dividends.

• LTM-based adjusted free cash flow exceeded €50 million.

• Net invested capital reached €706.2 million, up 26.8% from FY 2023.

Outlook and guidance

• FY 2024 guidance (excluding ABF): revenue growth of 11-15%, adjusted EBITDA growth of 10-14%.

• Including ABF, revenue growth expected at 20% and adjusted EBITDA at 22%.

• Leverage (NFP/Adjusted EBITDA) targeted at 1.9x by year-end 2024, excluding further M&A.

• "Transizione 5.0" expected to drive significant activity and benefit results in H2.