Azimut Holding (AZM) Q3 2024 earnings summary

Executive summary

• Adjusted net profit for the first nine months of 2024 reached €447 million, up 28% year-over-year, with strong operating activity and capital gains.

• Net inflows reached €14.3 billion by October 2024, more than doubling year-over-year and surpassing the full-year target.

• Major strategic developments included the sale of a 20% stake in Kennedy Lewis, a strategic partnership with Oaktree in Australia, and the launch of a digital bank project.

• Reorganization of the Italian FA network aims to create a digital bank, enabling deposit collection and net interest income.

• Strong organic growth in Italy and international expansion, especially in Australia, supported by acquisitions and advisor recruitment.

Financial highlights

• Total revenues rose 9% year-over-year to €1,054 million, with recurring management fees up to €898 million and insurance revenues at €116 million.

• EBIT increased 6% to €458 million, maintaining a 43.5% margin.

• Adjusted net profit margin improved to 61 basis points.

• Assets under management and custody grew to €108 billion by October 2024, with over 70% of inflows into managed products.

• Net financial position improved to €661 million, with cash and cash equivalents exceeding €1.1 billion.

Outlook and guidance

• Year-end net profit is expected between €550 million and €600 million, exceeding the €500 million target, contingent on market conditions and the closing of the AZ NGA sale.

• Net inflows target of €14 billion for 2024 was already exceeded by October.

• Deposit collection target for the new digital bank is set at €7.5–10 billion over the coming years.

• Continued focus on international expansion, digital banking, and private markets growth.

• Commercial activity remains strong across all countries, with further consolidation expected in Australia.