Tinexta (TNXT) Q2 2024 earnings summary

Executive summary

• Revenues for H1 2024 reached €203.0 million, up 11.3% year-over-year, driven by Digital Trust, organic growth, and acquisitions.

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

• Net profit from continuing operations was €2.3 million, down sharply year-over-year, reflecting lower operating profit, higher amortization, and absence of discontinued operations gains.

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

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

Financial highlights

• Revenues: €203.0 million (+11.3% YoY); Adjusted EBITDA: €34.4 million (-9.1% YoY); EBITDA: €25.5 million (-26.2% YoY).

• Adjusted operating profit: €19.5 million (-30.4% YoY); Net profit: €2.3 million; EPS: €0.01.

• Adjusted free cash flow from continuing operations: €25.8 million; free cash flow: €14.2 million.

• Net financial debt rose to €276.9 million from €102.0 million at year-end 2023, mainly due to acquisitions.

• Net invested capital rose 26% due to acquisitions.

Outlook and guidance

• FY2024 revenue expected to grow 11–15% YoY excluding ABF; including ABF, growth forecast at 20%.

• Adjusted EBITDA expected to grow 10–14% excluding ABF; including ABF, growth forecast at 22%.

• Leverage ratio (NFP/Adjusted EBITDA) projected at 1.9x by year-end 2024.

• Guidance revised down for ABF due to French political events; core business remains solid.

• "Transizione 5.0" expected to benefit results in H2.