Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MLP SE (WBO:MLP, Financial) achieved record high total revenue and EBIT for the first nine months of 2024.
- The company reaffirmed its EBIT forecast for 2024 and plans to increase EBIT to between EUR 101 and 110 million by the end of 2025.
- Strong performance in the wealth competence field, particularly in wealth management and interest rate business, contributed significantly to revenue growth.
- MLP SE's digital strategy has successfully enhanced client services and operational efficiency.
- The company has a stable revenue structure with a high share of recurring revenue, providing a strong foundation for future growth.
Negative Points
- MLP SE operates in a challenging macroeconomic environment in Germany, which could impact future performance.
- Revenue from the real estate development business declined significantly due to market turbulences.
- The company faces risks related to the ongoing recovery of the real estate markets.
- Loan loss provisioning increased in Q3 due to provisions on individual loans, indicating potential credit risk.
- There is uncertainty regarding the impact of government policies and potential non-passed budget measures on the company's operations.
Q & A Highlights
Q: Do you see any potential impact from a potentially non-passed renting package or other budget issues for 2025?
A: Reinhard Loose, CFO, stated that there were no impacts included in their planning from the renting package due to existing uncertainties. He emphasized that changes in government policy are not expected to negatively impact MLP SE. Instead, they hope for reduced bureaucracy and more supportive initiatives for the industry.
Q: Can you share the exposure of the industrial broker segment, particularly any cluster risks?
A: Reinhard Loose, CFO, confirmed that there are no cluster risks in the industrial broker segment. The company serves a diverse range of small and medium-sized enterprises across various industries, and while some insolvencies have occurred, new clients continue to join, presenting more opportunities than risks.
Q: What are the net liquidity figures and net inflows into assets under management?
A: Reinhard Loose, CFO, reported net inflows of EUR600 million into assets under management and a positive performance of EUR3.5 billion for 2024. As of September 30, liquidity stood at approximately EUR130 million, reflecting increased investments in infrastructure and real estate.
Q: When will you resume real estate development projects, and is there a risk of further goodwill impairment?
A: Reinhard Loose, CFO, indicated that new real estate projects are starting, with positive effects expected in 2025. The company anticipates a turnaround in the real estate segment next year. Regarding goodwill impairment, the project segment holds EUR12 million in goodwill, which is under review, but no definitive answer was provided.
Q: Could you elaborate on the increase in loan loss provisioning in Q3 and the outlook for Q4?
A: Reinhard Loose, CFO, explained that the increase was due to a EUR5 million loan to a specific customer facing instability. Overall, the company's risk provisioning remains at a comfortable level, and the high quality of their loan portfolio suggests limited future impacts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
