Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- MLP SE (XTER:MLP, Financial) achieved a record high total revenue of EUR1.067 billion in 2024, marking a significant milestone.
- The company reported a substantial increase in EBIT to EUR95 million, surpassing the previous two years.
- MLP SE's recurring revenue stands at nearly 70%, contributing to business stability and continuous growth.
- The company proposed a 20% increase in dividends to EUR0.36 per share, enhancing shareholder value.
- MLP SE's digital strategy, including AI integration, is improving client services and operational efficiency.
Negative Points
- Profitability in the DOMCURA segment declined due to high margin pressure and restructuring costs.
- The financial consulting segment experienced a decline in EBIT in 2024, although an improvement is expected in 2025.
- There were upfront development costs for AI tools that impacted margins in certain segments.
- MLP SE faced challenges in acquiring new companies in the industrial brokerage segment due to high market prices.
- The company is cautious about performance-based compensation, which may limit revenue growth in certain areas.
Q & A Highlights
Q: Can you provide details on net liquidity, capital inflow, and performance fees? Also, what caused the decline in DOMCURA's profitability, and will margins return to previous levels in 2025?
A: Net liquidity at year-end was around EUR200 million. Performance fees totaled EUR33.9 million for the year, with net inflows of EUR1.4 billion and performance of EUR4.7 billion in assets under management. DOMCURA's profitability decline was not primarily due to AI tool costs but rather high margin pressure, relocation costs, and board restructuring. We expect margins to improve in 2025.
Q: What led to the higher-than-expected margins in the industrial brokerage segment, and do you expect these margins to be sustainable?
A: The industrial brokerage segment benefited from organic growth, cost control, and a strategic focus on sustainable acquisitions. We are not pursuing overpriced acquisitions, which supports margin sustainability. The organic growth path is promising, and we expect continued success in this segment.
Q: Why did the EBIT decline in the financial consulting segment, and what is the outlook for 2025?
A: The EBIT decline in 2024 was due to internal factors, but we are confident that the segment's profit will exceed 2024 levels in 2025.
Q: How did the MLP banking segment perform in terms of commission income, and what is the outlook for 2025?
A: Commission income in the banking segment rose by over 15% in 2024 compared to 2023. We see no reason why we shouldn't meet our 2025 plans, indicating a positive outlook.
Q: Are there any plans for further acquisitions in the industrial brokerage segment?
A: We remain open to acquisitions but will not overpay. Our focus is on organic growth, which is showing strong potential. We have a robust acquisition pipeline and are optimistic about future opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
