Release Date: May 08, 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 best first four months in its history with managed net inflows of EUR5.5 billion, nearly three times higher than the same period last year.
- Recurring income increased by 13%, highlighting the resilience and quality of the core business.
- The company surpassed 1 million clients globally, marking a significant milestone in its growth journey.
- Azimut Holding SpA (AZIHF) made strategic acquisitions in the US and entered the Moroccan market, with plans to launch operations in Saudi Arabia, expanding its global footprint.
- The company continues to generate robust cash flow, with a cash flow to market cooperation in excess of 13%, supporting growth and shareholder returns.
Negative Points
- Overall profitability was affected by lower performance fees compared to the previous year.
- The company faced headwinds from currency fluctuations, particularly the US dollar and certain emerging market currencies, which softened total assets growth.
- Despite strong recurring revenues, the headline net profit showed a modest year-on-year decline due to lower performance fees.
- The exclusivity agreement for the TMB transaction was extended, indicating potential delays in finalizing the deal.
- There is a perceived disconnect between the company's strong performance and its current market valuation, suggesting that the market may not fully recognize its value.
Q & A Highlights
Q: Can you provide more details on the operational progress of the new bank, including deposit growth and advisor hires?
A: The transaction is ongoing, and we are positive about its evolution, which is why we extended the exclusivity. We are not limited to this option alone and are exploring other possibilities to generate value. The deposit activity is progressing normally, and we are close to achieving the net profit margin we initially expected. - Alessandro Zambotti, Co-CEO & CFO
Q: Is the majority stake in HighPost Capital a financial investment, or are there cross-sell opportunities?
A: This is a strategic investment. We aim to leverage our majority stake to launch new funds and strategies, utilizing HighPost Capital's strong network and solid LP base for future growth and distribution opportunities. - Giorgio Medda, Co-CEO
Q: Can you explain the new organizational structure, particularly the terms "integrated solutions" and "global wealth"?
A: Integrated solutions refer to businesses with a competitive advantage from integrating product factories with distribution teams, including Italy, Mexico, Turkey, and Taiwan. Global wealth pertains to wealth management conducted from global marketplaces like Singapore, Hong Kong, and Dubai. Both rely on delivering investment management solutions across various product cohorts. - Giorgio Medda, Co-CEO
Q: What is the outlook for exits in the private market business given recent market uncertainties?
A: While there is a slowdown in exits, we are operating with relatively recent vintages and are not focused on exits currently. However, we have opportunistically exited investments, such as a recent exit from an Italian tiles industry leader with a 3x multiple. We view market conditions as cyclical and are not overly concerned. - Giorgio Medda, Co-CEO
Q: Can you provide an update on the new bank's assets and financial advisors since the spinoff?
A: We are broadly stable in terms of financial advisors, with some leaving and others joining. In terms of assets, excluding market effects, we are around EUR25.5 to 26 billion, showing growth from the initial level. - Alessandro Zambotti, Co-CEO & CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
