(Alliance News) - doValue Spa reported that it closed the first quarter with a gross book value of EUR116.9 billion, essentially stable compared to Dec. 31, 2023.

Specifically, GBV was affected by several dynamics: new entrusted portfolios of EUR1.8 billion, Collections of EUR947 million, disposals from customers totaling EUR308 million. To these will be added in the short term EUR1 billion of mandates still in the onboarding phase.

In the first quarter, the group reported gross revenues of EUR97.1 million, down 3.3 percent from EUR100.4 million a year earlier. Revenues were positively impacted by a strong performance in Italy, with higher NPL and ancillary revenues in Italy, while posting lower completed disposals in Greece and lower revenues related to the REO business in Spain due to a still weak real estate market in the Iberian Peninsula.

Overall, Servicing revenues stood at EUR75.8 million and down 5.7 percent year-on-year, amounting to EUR24.2 million in Italy, EUR10.8 million in Spain and EUR40.8 million in the Hellenic Region.

Ebitda excluding nonrecurring items declined 20 percent year-on-year to EUR25 million from EUR31.2 million in the first quarter of 2023, a 5.3 percent decline in margin. Ebitda would be virtually unchanged if the approximately EUR6 million in provisions related to the variable component of former CEO Mangoni's compensation were added in the first quarter of 2023.

Net income, including nonrecurring items, was a loss of EUR7.1 million in the first quarter compared to a loss of EUR2.7 million in the first quarter of 2023. The EUR4.3 million decrease is mainly related to the decrease in Ebitda.

Operating cash flow stood at EUR3.9 million in the first quarter and decreased compared to the first quarter of 2023 mainly due to lower Ebitda and higher absorption of net working capital, which increased by EUR9.0 million and was fully reabsorbed with net collections realized in April 2024.

Including the collection of the arbitration that took place in April-covering the cash-out that took place in March for the earn-out payment, net debt as of March 31, 2024 was EUR494.3 million compared to EUR475.7 million as of December 31, 2023. Pro forma leverage thus stood at 2.9 times as of March 31, 2024 compared to 2.7 times as of December 31, 2023. The 2.9 times leverage is within the target range of 2.0-3.0 times reiterated in the 2024-2026 business plan, making doValue's capital structure prudent.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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