Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dovalue SpA (DOVXF, Financial) has already reached its annual target of 8 billion GDP from new business, highlighting its strong market position.
- EBITDA for the first nine months exceeded internal expectations, reaching 96 million, due to effective cost control and revenue diversification.
- The acquisition process is progressing as planned, with regulatory approvals underway and a seamless integration plan ready for execution.
- The company has secured a robust financing package, including a EUR 446 million term loan and an EUR 80 million revolving credit facility, enhancing its capital position.
- Dovalue SpA (DOVXF) has a strong pipeline of 53 billion projected over the next 18 months, indicating potential for future growth.
Negative Points
- Revenues for the first nine months were down by 5.4% year-on-year, primarily due to delays in sales in Greece and lower revenues in Spain.
- Net income was impacted by several factors, including impairments and lower EBITDA, resulting in a net income of only 5 million.
- The company's net debt increased to 494.5 million, up from 479.4 million, due to cash absorption in Greece and delayed disposals.
- The collection rate decreased to 4.1% from 4.4% in 2023, indicating challenges in maintaining collection efficiency.
- There is uncertainty regarding the renewal of flow contracts with major banks like Santander and Unicredit, which could impact future revenues.
Q & A Highlights
Q: Can you provide details on the expected acceleration in Q4 related to disposals and any risks to 2025 profitability?
A: We expect to close the year with 24 to 27 million in secondary sales, mainly from Greece. The fourth quarter is crucial due to bonuses from overperformance fees and legal expense management. We are confident in reaching our guidance, and the cost-saving measures will continue to support profitability. (Respondent: Unidentified_4)
Q: What is the status of the expiring flow contracts with Santander and Unicredit?
A: We do not assume the renewal of the flow contracts, only the continuation of the stock agreement. The flow represents around 400-500 million per annum, and discussions for renewal are expected in the first half of 2025. (Respondent: Unidentified_3)
Q: Can you elaborate on the changes in other assets and liabilities in the cash flow statement?
A: The changes are mainly due to lease payments and redundancy costs, which are not included in A BT D A. We have paid around 15 million in lease payments and 10 million in redundancy costs. Additionally, fund releases positively impacted A BT D A but did not generate cash. (Respondent: Unidentified_4)
Q: What are your plans for refinancing the outstanding bonds?
A: We plan to refinance the 2025 bond with a five-year amortizing term loan facility after the capital increase process. For the 2026 bond, we aim to refinance in the bond market to maintain exposure to both bank and bond markets. (Respondent: Unidentified_3)
Q: How is the market competition and liquidity evolving in your main markets, and what do you expect for 2025 and 2026?
A: We have achieved strong market positions, with over 90% market share in Greece and significant shares in Spain and Italy. The market is active with smaller deals, and we expect to close additional trades by year-end, exceeding our current budget. (Respondent: Unidentified_3)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
