Q4 2024 Axactor ASA Earnings Call Transcript
Key Points
- Gross revenue for Q4 2024 nearly doubled year-over-year, reaching EUR161 million, primarily due to a significant portfolio sale.
- Cash EBITDA increased significantly to EUR130 million from EUR55 million in the previous year, driven by the portfolio sale.
- Axactor ASA (FRA:2LJ) maintains a strong financial position with an equity ratio of 26% and over EUR100 million in available liquidity.
- The 3PC segment showed a 10% revenue growth year-over-year, with strong performance in Norway, Germany, Italy, and Spain.
- Axactor ASA (FRA:2LJ) successfully executed a portfolio sale at 102% of book value, generating approximately EUR80 million in cash, demonstrating the liquidity and value of its balance sheet.
- Adjusted for the portfolio sale, gross revenue actually declined by 4% year-over-year.
- A substantial negative revaluation of EUR104 million was recorded, impacting financial metrics and resulting in a negative return on equity of 19% for 2024.
- The NPL segment reported a negative total revenue of EUR59 million for the quarter due to challenging collection environments across all markets.
- The effective amortization rate for the quarter was significantly higher at 68%, up from 29% in the previous year, due to the Spanish portfolio sale.
- Despite improvements, the contribution margin in the 3PC segment slightly decreased from 46% to 44% due to one-off revenue items from business closures.
Hello, and welcome to the Axactor presentation of Q4 2024 Results. My name is Alex. I'll be coordinating the call today. (Operator Instructions) I'll now hand over to your host, Johnny Tsolis, CEO, to begin. Please go ahead.
Good morning, and welcome to Axactor's fourth quarter presentation. Together with me, I have our CFO, Nina Mortensen. This presentation will be divided into 4 parts. First, I will take you through the Q4 highlights. Then Nina will present the financial update, before I give an updated outlook. Finally, we'll round off with a Q&A session.
Let us move to slide 3 and have a look at the highlights for the quarter. Gross revenue increased substantially year-over-year compared to Q4 2023, up from EUR85 million to EUR161 million in '24. This large increase is explained by the previously announced portfolio sale that was conducted in Q4. More about that later. Adjusting for this transaction, the revenue declined 4% year-over-year. However, it is worth noticing that the 3PC revenue
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