• Revenues: Euro 7 million, + 2.8% compared to 351.8 million for the first nine months of 2020;
  • Adjusted EBITDA1: Euro 2 million, + 3.6% compared to 143.9 million for the first nine months of 2020, with an incidence on revenues of 41.2%;
  • Adjusted net profit1: Euro 1 million, + 10.5% compared to 68.0 million for the first nine months of 2020;
  • Operating Cash Flow: Euro 9 million, + 20.0% compared to 102.4 million for the first nine months of 2020;
  • Consolidated Net Financial Debt: Euro 2 million at 30 September 2021, equal to 2.5x the Adjusted EBITDA LTM.

The Board of Directors of Cerved Group S.p.A. (MTA: CERV) (the “Company” or “Cerved Group”), primary operator in Italy in credit risk analysis and credit management, have approved the results as of 30 September 2021.

Andrea Mignanelli, Chief Executive Officer of the Group, commented: “The results for the first nine months of 2021 confirm that our recovery path continues, although with different performances between the Data Intelligence and the Credit Management business units.

Data Intelligence, our core business, is already well above pre-Covid levels, both in terms of revenues and Adjusted EBITDA. We grew by 6.2% in Risk Intelligence services, thanks to the good performance of the financial institutions segment, which was positively affected by products linked to the Guarantee Fund, and the good performance in the corporate segment. The 14.2% growth in Marketing Intelligence services, mainly due to digital marketing and sales intelligence services, confirms our expectations of strong development in this area.

In Credit Management, a decline has been registered in both revenues and Adjusted EBITDA, due in part to the slowdown in the recovery dynamics of non-performing loans, as a tail end of the court closures which took place in Q2 2020, and in part to the recent extension to the end of 2021 of the moratoria on loans , which delayed the build-up of new volumes of non-performing loans. In this regard, I would like to point out that, in the first 9 months of 2021, transactions on NPL portfolios recorded the lowest level since 2017.”

Analysis of Consolidated Revenues

In the first nine months of 2021, the consolidated revenues of the Group increased by 2.8%, reaching Euro 361.7 million, compared to Euro 351.8 million in the first nine months of 2020.

Divisional revenues increased by 3.3% to Euro 361.7 million, compared to Euro 350.3 million (+ 3.1% on an organic basis). It should be noted that the divisional revenues relating to the first nine months of 2020 exclude  a capital gain of Euro 1.5 million related to the sale of a property in Turin.

Divisional revenues relating to the Risk Intelligence business unit went from Euro 197.5 million in the first nine months of 2021 to Euro 209.7 million in the same period of 2020, up by 6.2%:

  • the Corporates segment recorded an increase compared to the first nine months of 2020 (+ 2%) especially in the Credit Risk and Credit & ESG Rating areas;
  • the Financial Institutions segment also recorded growth compared to 2020 (+ 1%) mainly thanks to

the Credit Risk and Credit & ESG Rating services, as well as to the support services to banks in the disbursement of loans guaranteed by the Guarantee Fund.

Revenues relating to the Marketing Intelligence business unit increased from Euro 41.8 million in 2020 to Euro 47.8 million in 2021 (+ 14.2%), mainly due to the effect of the growth in revenues from Sales Intelligence and Digital Marketing.

Revenues relating to the Credit Management business unit went from Euro 111.0 million in 2020 to Euro 104.3 million in 2021, down by Euro 6.7 million, equal to -6.1%. This result is mainly affected by:

  • the decrease in the Banking Service Line, which in the first nine months of 2020 still benefited from the tail end of the contract with Monte Paschi di Siena for an amount equal to Euro 6 million;
  • the delay in collections due to the COVID 19 pandemic, which resulted in the closure of the courts for three months starting from April 2020, with impacts on the timing of judicial auctions and a slowdown in all subsequent phases of credit management;
  • the extension to the end of 2021 of the government support measures to corporates, in particular the moratoria on loans, with the effect of suspending the trend of business closures and therefore of temporarily postponing the potential generation of new loans;
  • the exit from the special servicing mandate of NPL portfolios recently disposed by the Cerberus Capital Management Group to a market operator, with an impact of approximately Euro 1 million in terms of lower revenues in the third quarter of 2021.

With reference to the Data Intelligence area, made up of the Risk Intelligence and Marketing Intelligence business units, it should be noted that Revenues in the first nine months of 2021 amounted to Euro 257.4 million, 9.7% higher than Euro 234.7 million in the first nine months of 2019.

Source: Source:  Cerved Group Earnings Release