GuruFocus -
- Net Inflows: EUR10 billion, 1.7x more than 2023.
- Revenue: EUR702 million, driven by recurring revenues and performance fees.
- EBIT: EUR312 million, up 9% versus first half 2023.
- Adjusted Net Profit: EUR330 million, a progression of 43% year-over-year.
- Total Assets: Over EUR100 billion as of June.
- Management Fees: EUR990 million, with significant contributions from Australia, Turkey, and Monaco.
- Performance Fees: EUR8.6 million, mainly from Turkey and Brazil.
- Insurance Revenue: EUR82.8 million, with a EUR28 million increase year-over-year.
- Total Costs: EUR390 million, with distribution costs at EUR205.6 million.
- Net Financial Position: Positive EUR636 million.
- Net Profit Target (NYSE:TGT): EUR500 million, with EUR330 million achieved in the first half.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Azimut Holding SpA (AZIHF) reported EUR10 billion in net inflows for the first half of 2024, a significant increase compared to 2023.
- The company achieved EUR702 million in revenue, driven by recurring revenues and performance fees, with EBIT up 9% year-over-year.
- Azimut Holding SpA successfully completed the sale of its minority stake in Kennedy Lewis, generating a substantial capital gain.
- The company reached over EUR100 billion in total assets under management for the first time, marking a significant milestone.
- Azimut Holding SpA is expanding its international presence, with strong contributions from markets like Australia, Brazil, and Turkey.
- The Italian market experienced net outflows, contrasting with Azimut Holding SpA's positive inflows, indicating potential challenges in the domestic market.
- The company's performance fees from Luxembourg-based funds were minimal due to the fulcrum mechanism, impacting overall fee generation.
- There was an increase in personnel and SG&A costs, partly due to international expansion, which could pressure margins.
- The New Bank project is still in negotiation phases, with uncertainties around finalizing agreements with banking partners.
- The company's guidance for net profit remains at EUR500 million, which some analysts perceive as conservative given the capital gains from the Kennedy Lewis sale.
A: The increase in revenues and costs is not solely due to changes in the perimeter in Australia. The organic revenue generation from our foreign business, particularly Australia, explains most of the increase. For SG&A costs, the best estimate would be to take the average of the first and second quarter and project this over the full year 2024.
Q: How much of the managed inflows in Italy came from Nova in the first half?
A: While Nova is contributing positively, we cannot provide an exact figure at this stage.
Q: Can you provide an update on the New Bank project and the client response?
A: The New Bank project is progressing well, with financial advisers showing strong support. We plan to start deposit collection in September, which has generated positive internal reactions.
Q: Is there a preferred partner for the New Bank, and why is there a need for an agreement with a third-party bank in September?
A: We are in discussions with several potential partners for the New Bank. The agreement with a third-party bank is to facilitate deposit collection, providing interesting conditions for customers and ensuring a smooth transition to the New Bank.
Q: Can you elaborate on the guidance for the net income for 2024, considering the capital gain from Kennedy Lewis?
A: We are confident in exceeding the EUR500 million net profit target for 2024. The guidance remains unchanged, reflecting our confidence in organic growth, M&A contributions, and one-off transactions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.