Wiz Co Participações e Corretagem de Seguros (WIZC3) Q2 2023 earnings summary

Executive summary

• Q2 gross revenue reached R$413.7M, up 55.0% YoY; net revenue ex commissions was R$202.7M, up 2.8%.

• Reported EBITDA rose 13.7% to R$125.4M; adjusted EBITDA increased 15.0% to R$125.4M, supported by cost controls and new business units.

• Consolidated net income fell 24.7% to R$43.2M, while adjusted net income declined 5.0% to R$72.4M.

Financial highlights

• H1 net revenue ex commissions rose 11.4% YoY to R$415.5M; adjusted net income increased 1.6% to R$143.5M, while consolidated net income fell 28.6% to R$77.8M.

• Adjusted EBITDA increased 20.5% to R$247.7M in H1; this excludes R$9.7M in extraordinary Q1 termination costs.

• Q2 G&A expenses fell 15.1% to R$34.0M; operational initiatives generated R$8.1M in savings, and corporate G&A included a positive R$8.2M incorporation effect.

• Q2 financial result expense widened to R$30.7M from R$14.2M YoY, driven by higher interest rates, acquisition payables, loans and debentures.

Outlook and guidance

• Management expects H2 improvement as interest rates ease, credit extension recovers, bancassurance sales opportunities strengthen and debt costs decline; recovery timing remains uncertain.

• Annualized savings target is ~R$40M versus 2022, with further efficiency gains expected in coming quarters.

• Planned launches include Bmg Med and Protected Card; Promotiva aims to expand its network and agreements, while Omni1 plans light-vehicle insurance products.