In This Article:
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Net Revenue: BRL518 million in Q2 2024, a 3% decrease year-over-year but a 7% increase from the previous quarter.
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Net Revenue Growth: 40% increase compared to the previous year.
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EBITDA: BRL129 million in Q2 2024, a 4% decrease year-over-year but an 11% increase from Q1 2024.
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EBITDA Margin: 25% in Q2 2024, up 1 percentage point from the previous quarter.
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Net Income: BRL8 million in Q2 2024, with a margin of 15%.
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Net Cash Flow: BRL136 million.
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ROIC: 22.5% over the past 12 months.
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Dividends Paid: BRL51 million in 2024, with an additional BRL35 million announced.
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ID and Digital Government Revenue: BRL202 million in Q2 2024, a 19% increase year-over-year.
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Payments Vertical Volume: 17.5 million cards issued in Brazil and Argentina.
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Mobile Segment Revenue: BRL111 million in Q2 2024, with an EBITDA margin of 18.5%.
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Operating Cash Flow: BRL173 million in the semester, 134% of EBITDA.
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Gross Debt Reduction: Significant reduction in Q2 2024.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Valid Solucoes eServicos de Seguranca em Meios de Pagamento e Identificacao (BSP:VLID3) achieved a record net revenue of BRL518 million in the second quarter.
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The company reported a 40% growth in net revenue compared to the previous year, reaching BRL80 million in the quarter.
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Valid Solucoes has consistently paid dividends for eight consecutive quarters, with BRL51 million already paid in 2024.
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The company achieved a ROIC of 22.5% over the past 12 months, indicating strong returns on invested capital.
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New business initiatives, including digital government and onboarding solutions, contributed 12% to the company's EBITDA in the second quarter.
Negative Points
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Net revenue for the second quarter was 3% lower compared to the previous year.
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The company's EBITDA margin dropped by 4% compared to the second quarter of the previous year.
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The mobile segment experienced a decline in sales and EBITDA year-over-year.
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There was a negative financial result of BRL16 million in the quarter, although it was an improvement from previous quarters.
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The company faces challenges in ramping up the issuance of new identity cards in Sao Paolo, affecting growth in the ID segment.
Q & A Highlights
Q: How is the rollout of the new national ID card progressing, and what are the plans for polycarbonate cards? A: Ilson Bressan, Sales and Marketing Director, explained that over 10 million SIMs have been issued in Brazil, with Valid responsible for 5.5 million. The rollout in Sao Paolo has been slower than expected, but growth is anticipated in the coming years. Polycarbonate cards are not yet widespread due to old contracts and cost considerations, but they are expected to ramp up by 2025.