Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wiz Co Participacoes e Corretagem de Seguros SA (BSP:WIZC3, Financial) reported an impressive 17.8% increase in adjusted consolidated EBITDA, reaching 187 million reals.
- The company's consolidated net profit rose by 20.8% compared to the same period last year, totaling 88.5 million reals.
- The insurance segment achieved a record EBITDA of 129.8 million reals, marking a 33.4% increase from the previous year.
- Interseguros reached a milestone with 3.4 million active contracts, reflecting a 115% increase from the previous year.
- The company has been ranked among the largest companies in Brazil, highlighting its strong market position and growth potential.
Negative Points
- The parent company's net income saw a decrease of 2.4% compared to the same period in 2023, impacted by reduced net commission revenue from the runoff of the Red Kasha operation.
- The services segment experienced a 4.3% drop in net commission revenue compared to the previous year.
- There was a partial write-off of the intangible asset in the subsidiary Polish Shop Seguros, impacting the financial results.
- The financial result showed a negative balance of 14 million reals, although it improved compared to the previous year.
- The company faces challenges in the Brazilian macroeconomic environment, including rising interest rates, which could impact future performance.
Q & A Highlights
Q: William Barnard from ITA BB A asked about the operating performance of Wiz Co's main business units and whether the growth pace of over 20% in revenue excluding commissions will continue.
A: Lucas Neves, CFO, responded that they expect to maintain this growth trajectory by optimizing profitability and strengthening competitive advantages through proprietary technology. They see opportunities in new products, improvements in current processes, and increased penetration in different areas. Despite rising interest rates, they are confident in the commitment of their business units and partners to continue growing.
Q: VTO Mendez, an investor, inquired about the strong growth rate of the interbank and its reflection in the broker company partnered with Wiz Co.
A: Lucas Neves explained that intersys posted a 64 million RS result year-to-date, with Wiz owning 40% of this operation. The interbank's growth and profitability positively impact the broker company, benefiting from a strong value proposition and product journey. The operation is not yet mature, indicating potential for further growth.
Q: Ricardo BGO from BT G asked about the company's leverage and the potential for rolling out debt this year or next, and the impact on dividend payments.
A: Lucas Neves stated that the priority is to manage the capital structure, especially regarding the rolling up of debentures. With a heated debt market and increased net income, they aim to optimize the capital structure. Decisions on dividends and share repurchase programs will follow once the capital structure is stabilized.
Q: Evandro Meos from Suno asked about the potential impact if the contract with Banco do Brazil is not renewed in three years.
A: Lucas Neves emphasized the importance of generating value for the bank and bank correspondents to facilitate contract renewal. They are focused on expanding the network, offering specific solutions, and increasing sales in various channels, which should strengthen their position for future negotiations.
Q: Rafael AA, an investor, asked about the prospects for investments in new businesses in the short term.
A: Marcus Oliveira, CEO, mentioned that the last inorganic acquisition was in December 2022. With a strong cash position and reduced net debt, they are well-positioned to resume inorganic growth if opportunities align with their growth strategy and capital cost. They have a pipeline of 30 to 40 opportunities, mainly in bank assurance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
