How are Nexi’s accounts going?

All the details on the Nexi group's half-yearly report

The Nexi stock opened positively this morning on the stock market, due in particular to the accounts released yesterday.

Here are all the details on the half-yearly report of the group active in the digital payments sector led by Paolo Bertoluzzo (in the photo).

WHAT THE HALF-YEARLY REPORT OF THE NEXI GROUP HIGHLIGHTS

Nexi closes the first half of 2024 with revenues of 1.66 billion, up 5.9% compared to the first six months of 2023 and higher than expected. Normalized net profit rose to 300.6 million (+3.4%). Ebitda + equal to 827.1 million, up by 8%, with a margin that jumped to 50% (+97 basis points), also thanks to the faster realization of efficiencies and synergies in light of the integration of the Group', we read in the note. In the second quarter, revenues rose to 878.9 million (+5.8% compared to the same period in 2023). Ebitda in the quarter amounted to 465.4 million, an increase of 7.5% compared to, and the Ebitda margin reached 53%, an increase of 84 basis points. The group's results are higher than the consensus which indicated revenues of 1.65 billion in the half-year and 873 million in the quarter.

NEXI'S NUMBERS

In the first half of the year the net financial position fell to 5 billion and the net NFP/Ebitda ratio decreased to 2.8 times (from 2.7). The group confirms its 2024 guidance with “mid-single digit growth” in revenues and “mid-to-high single digit” for Ebitda, with margin growth of over 100 basis points. Expected excess cash generation of over 700 million and net financial leverage falling below 2.9 times EBITDA, including the M&A operations already announced and the effects of the share buyback program (2.6x on an organic basis).

THE PURCHASE OF TREASURY SHARES

Nexi anticipates the conclusion of the treasury share buyback program worth 500 million euros to the end of 2024. Launched in May 2024, the program was expected to last 18 months but the results of the first half of the year allow for a "definite acceleration", we read in the group's note .

BAG EFFECT

The group active in the digital payments sector advances on the stock market this morning, earning well, with a change of 2.01%.

“The analysis of the stock performed on a weekly basis highlights Nexi's bullish trendline which is more pronounced than the trend of the FTSE MIB. This expresses the market's greater attractiveness towards the stock – writes Teleborsa – Nexi's medium-term technical status reiterates the negative trendline. However, analyzing the short-term chart, a less intense trend of the bearish line is highlighted which could favor a positive development of the curve towards the resistance area identified at 5.829 Euro. Any bullish cues support the target of the top at 5.923, while the first support is estimated at 5.735″.

THE WORDS OF BERTOLUZZO

Nexi's strategy focuses on "structural" shareholder remuneration. Paolo Bertoluzzo, CEO of the payments group, said this during today's conference call with analysts on the results of the first half of 2024. "The strong acceleration in cash generation allows us both to reduce debt quickly and to significantly remunerate shareholders" , added Bertoluzzo. This will happen with buyback programs or with the distribution of dividends, based on "market conditions". For Nexi, debt reduction remains "the priority", explained the CEO, who said he was calm about achieving the financial leverage target of 2-2.5 times Ebitda in 2026.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/come-vanno-i-conti-di-nexi/ on Thu, 01 Aug 2024 08:12:25 +0000.