Release Date: July 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Anima Holding SpA (STU:124, Financial) reported a significant increase in total revenues, reaching almost EUR 240 million, a 47% rise compared to last year.
- The company achieved an adjusted EBITDA of approximately EUR 176 million, marking a 51% increase from the previous year.
- Net profit saw a substantial rise, reaching almost EUR 119 million, an increase of nearly 90% compared to the previous year.
- The company demonstrated excellent cash flow generation, maintaining a strong cash position.
- Anima Holding SpA (STU:124) successfully integrated acquisitions, contributing positively to the overall financial performance.
Negative Points
- Net inflows were slightly negative at EUR 300 million, impacted by EUR 2.1 billion outflows in the 'trapping category'.
- The margin slightly diluted to 73.6% due to acquisitions with higher cost structures compared to historical averages.
- Investment performance was slightly below the industry average, attributed to a conservative client base and different asset mix.
- The company faced a higher cost-income ratio due to the integration of acquisitions with higher cost structures.
- The tax rate was unusually low, influenced by non-recurring items such as badwill income and lower dividends from subsidiaries.
Q & A Highlights
Q: Can you provide more details on the B2C retail flows and the contributions from your distributors?
A: Both Bami and Paschi are performing well, but our other partners, including smaller banks, are also doing better than last year. The trend is positive across all partners, with Bami and Monterrey contributing significantly due to their size and importance.
Q: What explains the improvement in margins despite a higher percentage of bond funds in the mix?
A: The improvement is due to a decrease in low-profitability Class one mandates and an increase in higher-profitability fixed income products. The fixed income products launched recently have higher pricing, sustainable by their expected returns, which boosts our average profitability.
Q: Can you elaborate on the lower dividends from subsidiaries and their impact on the tax rate?
A: The intra-group dividends have actually increased slightly, but the Monte Paschi dividend, taxed at a lower rate, has a dilutive effect on our tax rate. This explains the lower overall tax rate despite better numbers this semester.
Q: Are you expecting the strong retail inflows to continue in the second half of the year?
A: Yes, the trend is continuing positively. July was strong, and we expect this to persist. While Paschi will focus more on insurance in the latter half, we are confident in maintaining positive inflows from our other partners.
Q: How should we model the future contribution of performance fees, particularly from the Kairos acquisition?
A: The contribution from Kairos is not huge but is proportional to the two months included in our results. We expect a more significant impact as we consolidate Kairos for the full year.
Q: Is there a cap on variable costs, and how does it affect your performance fees?
A: Yes, there is a regulatory cap on bonuses and performance fees. We are not close to this cap yet, so there is still room for growth in variable costs if performance fees increase.
Q: Can you provide guidance on other revenues and management fee margin expansion?
A: Other revenues should remain linear throughout the year, assuming asset levels stay stable. Management fee margins should see a slight increase due to the full-year consolidation of Kairos, which has higher margins.
Q: What are your preferences regarding capital allocation—acquisitions or capital returns?
A: We are open to both. Acquisitions are in our DNA, and we continue to scout for opportunities, especially in alternatives and private banking. However, we also aim to remunerate our shareholders in line with our guidance.
Q: What are your expectations for asset under management (AUM) and net inflows by year-end for Kairos and Castellum?
A: Both entities are already contributing positively to net inflows. We aim to double the size of their AUM in five years and quadruple their EBITDA. The initial signs are very positive, and we believe these targets are achievable.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
