Earnings Release • May 10, 2018
Earnings Release
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| Informazione Regolamentata n. 1967-28-2018 |
Data/Ora Ricezione 10 Maggio 2018 20:27:15 |
MTA | ||
|---|---|---|---|---|
| Societa' | : | doBank SpA | ||
| Identificativo Informazione Regolamentata |
: | 103617 | ||
| Nome utilizzatore | : | DOBANKN02 - Paolo Romani | ||
| Tipologia | : | REGEM | ||
| Data/Ora Ricezione | : | 10 Maggio 2018 20:27:15 | ||
| Data/Ora Inizio Diffusione presunta |
: | 10 Maggio 2018 20:27:15 | ||
| Oggetto | : | Errata Corrige - Consolidated Interim Statement as at March 31 2018 |
||
| Testo del comunicato |
Vedi allegato.
Consolidated financial highlights as at March 31, 2018 compared with March 31, 2017.
Verona, May 10, 2018 – The Board of Directors of doBank S.p.A. (the "Company" or "doBank") today approved the Consolidated Interim Report as at March 31, 2018.
Andrea Mangoni, Chief Executive Officer of doBank, said: "Our performance in the first quarter is a positive start to the year, demonstrating our execution capability: without yet benefitting from the effect of our new management contracts, the Group still improved its profitability and cash generation. In April, we also officially kicked off our operations in Greece, the Group's first international foray, in a promising market that will represent a further line of growth in the three-year plan we will be presenting in London on June 19 this year".
As at March 31, 2018, doBank had gross revenues of €46.3 million, an increase of 2% compared with €45.2 million in the first quarter of 2017.
More specifically, servicing revenues, the Group's main business area accounting for 91% of total revenues, amounted to €41.9 million, up 1% on the €41.7 million posted in the year-earlier period. The increase in revenues from base fees, a slight improvement in the average performance fee and an increase in portfolio transfer indemnities more than offset the decline in revenues from performance fees, consistent with developments in collections and the GBV which only benefitted in the last part of the quarter from the major new management contracts taken on in February and March 2018.
Revenues from co-investment and revenues from ancillary products and minor activities amounted to €4.3 million overall (9% of total revenues), an increase of 23% on the first quarter of 2017, when they totalled €3.5 million. They benefitted from the revenues produced by the ABSs of the Romeo SPV and Mercuzio Securitisation securitisations and the growth in revenues from business information services, due diligence, master servicing activities and other administrative services.
A decrease in the use of the external network also helped reduce fee and commission expense (-12% compared with the first quarter of 2017, from 9% to 8% of gross revenues), supporting the growth in net revenues, which amounted to €42.6 million as at March 31, 2018, up 4% compared with the €41.0 million posted in the first quarter of 2017.
Operating expenses were essentially unchanged at €31.6 million, compared with €31.2 million in Q1 2017. The expected increase in staff expenses (+16% in Q1 2018 compared with a year earlier) was connected with the strengthening of top management and the effect of the new incentive mechanism introduced following the listing. This increase was offset by a decline in other costs, notably IT expenses, mainly due to the insourcing of a number of previously outsourced processes, and Real Estate costs. The increase in other overheads was partly driven by a rise in outsourcing services for ancillary products and the start-up of operations in Greece.
EBITDA as at March 31, 2018 amounted to €11.0 million, up 12% compared with the same period of 2017. when the aggregate totalled €9.9 million. As a percentage of revenues, EBITDA rose significantly, going from 22% in Q1 2017 to 24% in Q1 2018.
Net profit as at March 31, 2018 amounted to €6.6 million, up 23% on the €5.3 million registered as at March 31, 2017 (the latter was adversely impact by losses on assets held for sale of about €341 thousand).
Net working capital amounted to €82.4 million, an improvement on the €93.1 million posted as at March 31, 2017, thanks to a decline in trade receivables, but a slight increase compared with the end of 2017, reflecting the normal seasonal fluctuations in the business.
The positive net financial position (cash) amounted to €48.3 million as at March 31, 2018, compared with €38.6 million at the end of and €27.5 million as at March 31, 2017, and was characterised by the absence of bank debt. Cash generation was especially strong in the first quarter of 2018, amounting to about €9.7 million from the end of 2017, equal to 88% of EBITDA for the period.
Tax assets amounted to €92.8 million as at March 31, 2018, slightly down compared with the end of 2017 (€94.2 million), mainly reflecting the reversal of assets on prior-year tax losses.
The CET1 ratio amounted to 26.8% compared with 26.4% as at December 31, 2017.
Assets under management (GBV) at March 31, 2018 amounted to €87.5 billion, compared with €82.5 billion a year earlier and €76.7 billion at the end of 2017. The substantial increase in the portfolio of loans under management reflected the more than €12 billion in GBV of new servicing contracts. In February, the portfolio transferred by REV, that connected with the Berenice operation and other smaller portfolios were onboarded, while in March the Group began management of the portfolio of loans originated by the MPS Group under a contract with the Italian Recovery Fund. The new servicing contracts were accompanied by about €0.3 billion (GBV) in new volumes from existing customers and the ordinary developments in collections, cancellations and transfers of portfolios.
Collections on loans under management in Q1 2018 amounted to €374 million, down on the €394 million posted in the first quarter of 2017 (-5%). Developments in collections, which were in line with expectations and the seasonal pattern of operations forecast for 2018, reflect changes in GBV under management, which only benefitted from the new management contracts in the last part of the period. Excluding new business, GBV in the first quarter of 2018 would have contracted by about 9% compared with the first quarter of 2017, underscoring the resilient performance of collections compared with the decline in GBV.
The collection rate at the end of March 2018 (the ratio of collections in the last 12 months to end-period GBV), excluding new management contracts, held steady at 2.4%, unchanged compared with December 31, 2017; including new servicing contracts – characterised by the dynamics discussed earlier and only partly reflected in collections for the period – the rate was 2.1%.
The Shareholders' Meeting of doBank S.p.A. met in ordinary session on April 19, 2018 and approved all items on the agenda, including the appointment of Company directors, who will remain in office until the approval of the financial statements for the year ending December 31, 2020: Giovanni Castellaneta (Chairman), Andrea Mangoni, Nunzio Guglielmino, Giovanni Lo Storto, Emanuela Da Rin, Paola Bruno, Francesco Colasanti and Giuseppe Ranieri, drawn from the list voted by the majority of the shareholders, and Giovanni Battista Dagnino, drawn from the list voted by the minority.
The Meeting also appointed the members of the Board of Auditors for the 2018-2020 term, who will remain in office until the approval of the financial statements for the year ending December 31, 2020: Chiara Molon (Chairman), drawn from the list voted by the minority shareholders, and Francesco Mariano Bonifacio and Nicola Lorito, drawn from the list voted by the majority. Also appointed were the alternate auditors Sara Peron, drawn from the list voted by the minority shareholders, and Roberta Senni, drawn from the list voted by the majority. The Shareholders' Meeting of April 19 was attended, in person or by proxy, by 143 shareholders representing 80.41% of share capital.
Following completion of the passporting of the banking license, in April 2018, doBank Hellas was registered with the Chamber of Commerce of Athens (Greece), the first foreign branch of the doBank Group. The branch is starting the operations in the local market, one of Europe's largest in the servicing of non-performing loans.
For 2018, the Group confirms expectations of a substantial increase in assets under management (GBV), in addition to the €12 billion achieved in the first quarter, and an improvement in recovery capacity, which is expected to increase collections. The Group will continue reap the benefits of our operating leverage, with a positive impact on EBITDA and cash generation in terms of EBITDA-Capex. Finally, the Group plans to present an updated medium-term outlook (2018-2020) on June 19, 2018 in London.
***
The Board of Directors, meeting today, also verified that the directors and members of the Board of Auditors appointed on April 19, 2018 by the Shareholders' Meeting complied with applicable regulatory requirements. Specifically, the Board verified that the independence requirements provided for in Article 148, paragraph 3, of Legislative Decree 58/1998 (Consolidated Financial Intermediation Act) and Article 3 of the Corporate Governance Code for listed companies were met by the directors Nunzio Guglielmino, Giovanni Lo Storto and Giovanni Battista Dagnino, as per their declarations, and by all the members of the Board of Auditors, while the independence requirements provided for in Article 148, paragraph 3, of Legislative Decree 58/1998 only, were also met by the director Giovanni Castellaneta.
The Board of Directors, moreover, has verified that directors and members of the Board of Auditors met the regulatory honourability and professionalism requirements.
***
The preliminary results as at March 31, 2018 will be presented on May 11 at 11:00 in a conference call in audiowebcast format held by the Group's top management.
The conference call can be followed via webcast by connecting to the bank's website at www.dobank.com or the following URL: http://services.choruscall.eu/links/dobank180511.html.
As an alternative to the webcast, it will be possible to participate in the conference call by calling one of the following numbers:
ITALY: +39 02 805 88 11 UK: +44 121 281 8003 USA: +1 718 705 8794
The presentation by top management will be available as from the start of the conference call on the www.dobank.com site in the "Investor Relations/Financial Statements and Reports" section.
Mauro Goatin, in his capacity as the officer responsible for preparing corporate accounting documents, certifies – pursuant to Article 154-bis, paragraph 2, of Legislative Decree 58/1998 (the Consolidated Financial Intermediation Act) – that the accounting information in this press release is consistent with the data in the accounting documentation, books and other accounting records.
***
The Consolidated Interim Report as at March 31, 2017 will be made available to the public at the Company's headquarters and at Borsa Italiana, as well as on the website www.dobank.com in the Investor Relations / Financial Statements and Reports" section by the statutory deadlines.
***
doBank S.p.A.
doBank, listed on the Electronic Stock Market (Mercato Telematico Azionario) organised and operated by Borsa Italiana S.p.A. since July 2017, is the leading player in Italy in the business of managing loans, primarily non performing. With more than 17 years of experience in the sector and asset under management of Euro 77 billion as of December 31, 2017, the Group is a historical partner to primary Italian and international financial institutions and investors. With an outstanding operating model the Group manages all stages in the life-cycle of the loans and has received top Servicing Ratings at European level.
In 2017, doBank had gross revenues of about Euro 213 million with an EBITDA margin of 33% and a high level of cash generation.
Image Building doBank S.p.A. Simona Raffaelli – Vanessa Corallino [email protected]
Investor Relations doBank S.p.A. Manuela Franchi – Fabio Ruffini 06 47979154
(€/000)
| Condensed consolidated income statement | First Quarter | Change | |||
|---|---|---|---|---|---|
| 2018 | 2017 | Amount | % | ||
| Serv icing rev enues | 41,947 | 41,721 | 226 | 1% | |
| o/w Banks | 27,053 | 38,454 | (11,401) | (30)% | |
| o/w Investors | 14,894 | 3,267 | 11,627 | n.s. | |
| Co-inv estment rev enues | 236 | - | 236 | n.s. | |
| Ancillary and other rev enues | 4,069 | 3,486 | 583 | 17% | |
| Gross Revenues | 46,252 | 45,207 | 1,045 | 2% | |
| Outsourcing fees | (3,684) | (4,191) | 507 | (12)% | |
| Net revenues | 42,568 | 41,016 | 1,552 | 4% | |
| Staff expenses | (22,496) | (19,436) | (3,060) | 16% | |
| Administrativ e expenses | (9,071) | (11,719) | 2,648 | (23)% | |
| o/w IT | (3,343) | (6,905) | 3,562 | (52)% | |
| o/w Real Estate | (1,925) | (1,967) | 42 | (2)% | |
| o/w SG&A | (3,803) | (2,847) | (956) | 34% | |
| Operating expenses | (31,567) | (31,155) | (412) | 1% | |
| EBITDA | 11,001 | 9,861 | 1,140 | 12% | |
| EBITDA Margin | 24% | 22% | 2% | 9% | |
| Impairment/Write-backs on property, plant, equipment and intangible assets | (559) | (506) | (53) | 10% | |
| Net Prov isions for risks and charges | (211) | (135) | (76) | 56% | |
| Net Write-downs of loans | 8 | 70 | (62) | (89)% | |
| Net income (losses) from inv estments | 340 | - | 340 | n.s. | |
| EBIT | 10,579 | 9,290 | 1,289 | 14% | |
| Net financial interest and commissions | (46) | (46) | - | n.s. | |
| EBT | 10,533 | 9,244 | 1,289 | 14% | |
| Income tax for the period | (3,960) | (3,572) | (388) | 11% | |
| Profit (loss) from group of assets sold and held for sale net of tax | - | (341) | 341 | (100)% | |
| Net Profit (Loss) for the period | 6,573 | 5,331 | 1,242 | 23% |
(€/000)
| Assets | 3/31/2018 | 12/31/2017 | |
|---|---|---|---|
| 10 | Cash and cash equiv alents | 14 | 21 |
| 20 | Financial assets measured at fair v alue through profit or loss | 22,853 | 22,998 |
| c) Other financial assets obligatorily measured at fair v alue | 22,853 | 22,998 | |
| 30 | Financial assets measured at fair v alue through comprehensiv e income | 1,002 | 1,003 |
| 40 | Financial assets measured at amortised cost | 60,110 | 52,302 |
| a) Loans and receiv ables with banks | 55,645 | 49,449 | |
| b) Loans and receiv ables with customers | 4,465 | 2,853 | |
| 70 | Equity inv estments | 3,219 | 2,879 |
| 90 | Property, plant and equipment | 1,840 | 1,819 |
| 100 | Intangible assets | 4,440 | 4,506 |
| of which goodwill | - | - | |
| 110 | Tax assets | 92,791 | 94,187 |
| a) Current tax assets | 155 | 165 | |
| b) Deferred tax assets | 92,636 | 94,022 | |
| 120 | Non-current assets and disposal groups held for sale | 10 | 10 |
| 130 | Other assets | 115,108 | 117,775 |
| Total assets | 301,387 | 297,500 |
| Liabilities and shareholders' equity | 3/31/2018 | 12/31/2017 | |
|---|---|---|---|
| 10 | Financial liabilities measured at amortised cost | 8,531 | 12,106 |
| b) Due to customers | 8,531 | 12,106 | |
| 60 | Tax liabilities | 5,944 | 3,852 |
| a) Current tax liabilities | 5,497 | 3,405 | |
| b) Deferred tax liabilities | 447 | 447 | |
| 80 | Other liabilities | 64,796 | 37,906 |
| 90 | Employee termination benefits | 10,371 | 10,360 |
| 100 | Prov isions for risks and charges | 27,850 | 26,579 |
| c) Other prov isions | 27,850 | 26,579 | |
| 120 | Valuation reserv es | 186 | 1350 |
| 150 | Reserv es | 136,133 | 119,350 |
| 170 | Share capital | 41,280 | 41,280 |
| 180 | Treasury shares (-) | (277) | (277) |
| 200 | Net profit (loss) for the period (+/-) | 6,573 | 44,994 |
| Total liabilities and shareholders' equity | 301,387 | 297,500 |
(€/000) EBITDA 11,001 9,861 Net Capex (439) (722) EBITDA-Capex 10,562 9,139 as % of EBITDA 96% 93% Adjustment for accrual on share-based incentiv e system payments 1,607 - Changes in NWC (4,162) (13,786) Changes in other assets/liabilities 1,842 3,466 Operating Cash Flow 9,849 (1,181) Financial interests paid/collected (46) (46) Free Cash Flow 9,803 (1,227) (Inv estments)/div estments in financial assets (73) (751) Net Cash Flow of the period 9,730 (1,978) - - Net financial Position - Beginning of period 38,605 29,459 Net financial Position - End of period 48,335 27,481 Change in Net Financial Position 9,730 (1,978) Cash Flow 31/03/2018 31/03/2017
(€/000)
| Key performance indicators | 3/31/2018 | 3/31/2017 | 12/31/2017 |
|---|---|---|---|
| Gross Book Value (Eop) - in millions of Euro - | 87,523 | 82,496 | 76,703 |
| Collections for the period - in millions of Euro - | 374 | 394 | 1,836 |
| Collections for the Last Twelv e Months (LTM) - in millions of Euro - | 1,817 | 1,899 | 1,836 |
| LTM Collections/GBV (EoP) | 2.1% | 2.3% | 2.4% |
| LTM Collections Stock/GBV Stock (EoP) | 2.4% | 2.4% | 2.4% |
| Staff FTE/Total FTE | 37% | 33% | 37% |
| LTM Collections/Servicing FTE | 2,523 | 2,414 | 2,510 |
| Cost/Income ratio | 74% | 76% | 64% |
| EBITDA | 11,001 | 9,861 | 70,102 |
| EBT | 10,533 | 9,244 | 68,134 |
| EBITDA Margin | 24% | 22% | 33% |
| EBT Margin | 23% | 20% | 32% |
| EBITDA – Capex | 10,562 | 9,139 | 64,436 |
| Net Working Capital | 82,427 | 93,106 | 78,265 |
| Net Financial Position of cash/(debt) | 48,335 | 27,481 | 38,605 |
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