Anima Holding SpA (FRA:124) Q3 2024 Earnings Call Highlights: Record AUM and Robust Revenue Growth

In This Article:

  • Assets Under Management (AUM): EUR203 billion at the end of September 2024, up EUR19 billion year-on-year.

  • EBITDA Margin: Over 70%, despite acquisitions with a dilutive effect.

  • Net Revenue Increase: 20% year-on-year, 11% like-for-like.

  • Total Revenue Increase: 48% year-on-year, 37% like-for-like, driven by performance fees.

  • EBITDA Adjusted Increase: Almost 50% compared to last year.

  • Net Income Increase: 78% compared to last year.

  • Tax Rate: Approximately 28% year-to-date.

  • Performance Fees: Almost EUR64 million in the nine months.

  • Dividend Paid: Almost EUR80 million in May 2024.

  • Share Buyback: EUR40 million completed in September 2024.

  • Firepower for M&A Activity: Estimated at EUR600 million post-expected 2024 dividend.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Anima Holding SpA (FRA:124) reported a significant increase in assets under management (AUM), reaching EUR203 billion, close to their historical high.

  • The company experienced strong inflows, particularly in the retail segment, driven by partner banks.

  • Performance fees have significantly increased, contributing to a 48% rise in total revenues year-on-year.

  • The EBITDA margin remains stable above 70%, despite the dilutive effects of recent acquisitions.

  • Anima Holding SpA continues to generate substantial cash flow, enabling shareholder returns through dividends and share buybacks.

Negative Points

  • The institutional category saw a net outflow of EUR2.6 billion, primarily due to the wrapping component.

  • The company's asset mix is slightly underperforming the Italian average due to a conservative approach.

  • The cost-income ratio has worsened due to the consolidation of acquired companies with higher costs.

  • The tax rate is expected to increase to 32% next year, up from the current 28%.

  • Despite positive contributions from recent acquisitions, there is still significant work required to fully integrate and optimize these businesses.

Q & A Highlights

Q: What is the trend in inflows for October and expectations for Q4, both institutional and retail? A: The trend in net inflows for October is very similar to what was observed earlier in the year, with retail remaining strong. This trend is expected to continue due to decreasing interest rates, which are encouraging clients to invest in Anima's solutions and motivating banks and distribution networks to focus more on commissions.

Q: What is the outlook for operating costs in Q4 and 2025? A: The impact of the Castello acquisition is fully reflected in this year's numbers, while the impact of Kairos will be more pronounced next year as it was consolidated from May 2. This will result in a further increase in the cost-income ratio, as Kairos has a higher cost-income ratio than the group average.