Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Azimut Holding SpA (AZIHF, Financial) recorded the highest level of revenues and the second highest level of net profit in 2024.
- The company successfully completed a deleverage process, fully repaying all debt commitments.
- A dividend of EUR1.75 per share has been proposed, consistent with the company's dividend policy.
- Azimut Holding SpA (AZIHF) achieved EUR18.3 billion in net new money for 2024, with significant contributions from regions like Italy, EMEA, Asia Pacific, and the Americas.
- The company has a strong international presence, with asset management and distribution networks in 19 countries, and plans to expand further in Africa and Asia.
Negative Points
- The company faced a 13% increase in costs, with a 10% adjusted cost growth when accounting for extraordinary items.
- There is strong competition in the market for financial advisers, which could impact recruitment and retention.
- The EBIT margin slightly declined, attributed to one-off expenses and increased marketing and project costs.
- The completion of the TNB project is complex and requires more time, with ongoing negotiations and due diligence.
- The recurring net profit margin declined in 2024, influenced by various factors including overperformance-related expenses.
Q & A Highlights
Q: Why hasn't Azimut Holding utilized its strong net financial position for buybacks or other opportunities?
A: Gabriele Blei, Co-CEO, explained that the focus has been on deleveraging, which has been successfully completed. The company is disciplined in cash use, financing projects internally or with minimal debt. A buyback program is considered an additional shareholder remuneration tool and will be proposed when deemed opportune.
Q: Can you elaborate on the new opportunities in Africa and Asia?
A: Gabriele Blei, Co-CEO, stated that the aim is to enhance geographical exposure and competencies. The company has expanded in the Middle East and Africa with operations in Turkey, UAE, and Egypt, and plans to further develop this platform.
Q: What is the status of the new bank's deposit gathering and the expected carried interest from private market funds?
A: Gabriele Blei, Co-CEO, noted that deposit gathering is ongoing with partner illimity, and the company looks forward to continuing this on its own platform. Carried interest from private market funds is expected in the coming years as funds approach closing.
Q: Will the new dividend policy include a ratchet mechanism to attract value funds?
A: Gabriele Blei, Co-CEO, mentioned that the new dividend policy will be part of a comprehensive strategy and is open to investor recommendations. The policy will be articulated in the company's industrial plan.
Q: What are the expectations for cost growth and net inflows in 2025?
A: Gabriele Blei, Co-CEO, indicated a cost inflation range of 7% to 10% for 2025, consistent with the EUR10 billion net inflow target. The majority of inflows are expected to be organic, with potential contributions from M&A.
Q: How will the banking license impact capital requirements, and who will provide this capital?
A: Gabriele Blei, Co-CEO, stated that capital requirements will depend on the deposit base growth and are being discussed with FSI. There are no current issues with the potential partner regarding this matter.
Q: What is the guidance for the tax rate in 2025?
A: Gabriele Blei, Co-CEO, expects a 25% tax rate, influenced by the introduction of global minimum taxation, including in regions like Dubai.
Q: Will the share buyback shares be canceled or used for M&A?
A: Gabriele Blei, Co-CEO, mentioned that past buybacks have used both approaches. The decision will depend on enhancing shareholder value and the financial context at the time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
