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, with margin compression in Cybersecurity and Business Innovation, and underperformance of ABF.

• 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, mainly due to significant acquisitions and dividend distribution.

• 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 net profit from continuing operations was €11.9 million; reported net profit was €2.3 million.

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

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

• Adjusted EBITDA margin was 17.0% in H1 2024, down from 20.8% in H1 2023.

Outlook and guidance

• 2024 consolidated revenues expected to grow 20% vs 2023; 11-15% growth excluding ABF.

• Adjusted EBITDA forecasted to increase 22% vs 2023; 10-14% growth excluding ABF.

• Leverage ratio (NFP/Adjusted EBITDA) projected at 1.9x by year-end 2024, not including further M&A.

• "Transizione 5.0" expected to benefit results in H2 2024.