Q2 2024 Nexi SpA Earnings Call Transcript
Key Points
- Nexi SpA (NEXXY) reported a revenue growth of 5.9% in the first half of 2024, with merchant solutions revenues up 7%.
- EBITDA grew by 8% in the first half, with an EBITDA margin expansion of close to 100 basis points.
- The company generated EUR383 million in excess cash in the first half, up more than 40% compared to last year.
- Nexi SpA (NEXXY) has accelerated its efficiency and cost synergies delivery, which will become more visible in the second half of the year.
- The company is progressing with its deleveraging strategy, reducing net debt-to-EBITDA to 2.8 times as of June 2024.
- The macroeconomic environment in Europe remains challenging, which could impact future performance.
- National schemes volumes are under pressure, particularly in Italy, affecting overall volume growth.
- The company faces ongoing inflationary pressures and higher volumes, which could impact cost management.
- There is uncertainty regarding the completion of the Sabadell deal, which could affect Nexi SpA (NEXXY)'s expansion strategy in Spain.
- The company has significant severance costs, with EUR70 million to EUR75 million expected to be cash outflows in 2024.
Good morning. This is the Chorus Call conference operator. Welcome, and thank you for joining the Nexi first half's 2024 financial results conference call. (Operator Instructions)
At this time, I would like to turn the conference over to Paolo Bertoluzzo, of Nexi. Please go ahead.
Thank you. Good morning to everyone, and welcome to our call for the results for the first half of 2024. As usual, I'm here with Bernardo Mingrone, our CFO; and TGM, Stefania Mantegazza, is leading our Investor Relations activities and a number of other colleagues that may help us in case we have very specific questions.
The program is very similar to the one that we had last time. So I will start by summarizing the key messages then we will deep dive on a topic that we believe is particularly relevant for next year, but most importantly for our investors and for the market.
This time, we will deep dive on our cash acceleration formula in our capital allocation strategy. Remember, last
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