GuruFocus -
- Revenue Growth: Increased by 10% from NOK356 million to NOK392 million in the quarter.
- Rolling 12-Month Revenue: Approximately NOK1.85 billion, up from NOK1.7 billion over the last two years.
- Operating Margin: Increased by 3 percentage points from 17% to 20% in the first nine months of the year.
- Earnings Per Share (EPS): Grew by 35% from NOK0.26 to NOK0.35 for the first nine months; 29% increase in the quarter from NOK0.07 to NOK0.09.
- Debt Capital Markets Revenue: Up by 32% in the quarter to NOK161 million and by 22% in the first nine months to NOK531 million.
- Cost Impact from Weakening NOK: Total fixed cost base increased by NOK13 million year-to-date and NOK7 million in the quarter.
- Headcount: Slightly down year-over-year in the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ABG Sundal Collier Holding ASA (ABGSF) reported one of its strongest third quarters ever, with significant contributions from all business segments.
- The company achieved a 10% increase in quarterly revenues, growing from NOK356 million to NOK392 million.
- Operating margin improved by 3 percentage points, rising from 17% to 20% in the first nine months of the year.
- Earnings per share increased by 35% year-to-date, demonstrating strong operational leverage.
- Debt capital markets (DCM) revenues grew by 32% in the quarter, highlighting robust performance in this segment.
- The weakening of the Norwegian krone continues to inflate the company's fixed cost base, impacting financial performance.
- The Nordic equity markets experienced muted activity, particularly in primary volumes, affecting potential revenue streams.
- The M&A market remains stable but slightly muted, with volumes and number of deals being flat or down.
- The company faces increased costs due to its profitability-driven compensation model, which raises variable compensation expenses.
- Despite strong performance, the company operates in a highly competitive Nordic investment banking market, which poses ongoing challenges.
A: The strong performance in DCM is driven by our broad sector coverage, which is closely integrated with the rest of our business and coverage teams. This integration allows us to not rely on a single hot sector but to benefit from multiple sectors. Additionally, ABG Sundal Collier consistently outperforms the competition in deals, making clients comfortable with having us as their adviser. - Jonas Strom, Chief Executive Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.