Yahoo Finance

• EBITDA: EUR67 million for the first half of 2024, exceeding internal budget expectations.

• Net Cash Flow: EUR57.6 million in Q2 2024.

• Gross Revenues: EUR214 million for the first half of 2024, down 5.7% year-on-year.

• Net Income (Excluding Non-Recurring Items): Positively impacted by lower SG&A and provisions.

• Gross Book Value (GBV): EUR118 billion at the end of the first half of 2024.

• New Business Intake: EUR7.5 billion in the first half of 2024.

• Operating Expenses: Stable at EUR125 million year-on-year.

• Leverage: Stable at 2.9 times EBITDA.

• Collection Rate: Decreased to 4.2% from 4.4% last year.

• Guidance for 2024 Revenues: Revised to EUR460 million to EUR480 million.

• EBITDA Guidance for 2024: EUR155 million to EUR165 million.

• Warning! GuruFocus has detected 6 Warning Signs with DOVXD.

Release Date: August 08, 2024

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

Positive Points

• Dovalue SpA (DOVXD) reported an EBITDA of EUR67 million for the first half of 2024, exceeding internal budget expectations due to revenue diversification and cost discipline.

• The company secured EUR7.5 billion in new business, with EUR4.5 billion from forward flow contracts, demonstrating strong market momentum despite challenging conditions.

• Dovalue SpA (DOVXD) maintained a corporate rating of BB/stable outlook, showcasing the strength of its business model amidst industry downgrades.

• The acquisition of Gardant is progressing smoothly and is expected to enhance business capabilities and market position significantly.

• The company has a robust pipeline of potential deals totaling EUR57 billion over the next 18 months, indicating strong future growth prospects.

Negative Points

• Gross revenues for the first half of 2024 were down 5.7% compared to the same period in 2023, due to delayed sales in Greece and a challenging macroeconomic environment.

• The EBITDA margin in the Hellenic region was notably impacted by lower disposals, affecting overall profitability.

• Net income was positively impacted by a one-off effect related to a Spanish Tax Claim, indicating reliance on non-recurring items for profitability.

• The company revised its full-year revenue guidance downward to EUR460 million to EUR480 million from EUR480 million to EUR490 million due to delays in certain transactions.

• The financial leverage remains high at 2.9 times EBITDA, which could pose risks if revenue growth does not meet expectations.

Q & A Highlights

Q: Can you elaborate on the cash generation expectations for the second half, particularly regarding other assets and liabilities, and the impact of net working capital? A: Davide Soffietti, Chief, Group Finance, explained that cash generation is in line with expectations, with a slight improvement in the first half. For other liabilities, they expect similar figures to the first half, with a lower redundancy amount due to the Gardant transaction. IFRS 16 outflows are expected to reach EUR16-17 million by year-end. Net working capital is anticipated to range from minus EUR5 million to zero, influenced by secondary sales and onboarding timing.