In This Article:
Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dovalue SpA (FRA:1DB0) achieved significant business growth in 2024, surpassing their annual target with 9.9 billion in new business.
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The company successfully completed a major M&A transaction and a rights issue, strengthening its market position.
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Dovalue SpA (FRA:1DB0) reported strong cash flow generation, exceeding expectations with a leverage ratio of 2.4 times.
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The integration of the Gardens acquisition is progressing well, with 20% of synergies already realized and expectations to reach 40% by the end of 2025.
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The company has a solid pipeline of 55 billion projected over the next 18 months, indicating strong future growth potential.
Negative Points
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EBITDA excluding non-recurring items decreased by 7.8% compared to 2023, primarily due to fewer disposals and a challenging real estate market in Spain.
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Operating expenses increased slightly, impacted by wage inflation in Italy and the initial consolidation of Gardens.
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The Spanish market faced challenges with a 20% decline in gross revenues due to delays in debt recovery proceedings.
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The company faces higher financial charges due to new term loans and bond issuances related to the Gardens acquisition.
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There is uncertainty regarding the impact of ongoing bank consolidations on Dovalue SpA (FRA:1DB0)'s flow contracts and potential changes in NPE flows.
Q & A Highlights
Q: Can you provide more details on the dynamics below EBITDA and expectations for the next year? Also, what growth should we expect from ancillary services? A: Below EBITDA, we have net breakdowns on property, plant, and equipment, and intangible assets, which we expect to increase in 2025 due to the full impact of the garden acquisition. Ancillary services are a key growth driver, with efforts to expand data products, legal services, and real estate services, especially in Italy and Greece. We anticipate further growth in 2025 as the advisory and mortgage brokerage divisions are now operational. Unidentified_3 and Unidentified_2
Q: Could you provide a pro forma number for 2024 including gardens from the start of the year, and explain the bridge between 2025 EBITDA and free cash flow? A: The pro forma EBITDA for 2024 was around 210 million. For 2025, the bridge to free cash flow includes expected capital expenditures, redundancy costs, financial charges, and tax impacts, leading to a free cash flow guidance of 60-70 million. Unidentified_2 and Unidentified_3