The Board of Directors of Cerved Group S.p.A. (MTA: CERV, the “Group”) – the largest information provider and credit servicer in Italy – has approved the results as of 30 September 2019.
- Revenues: Euro 361.1 million, +11.6% compared to Euro 323.6 million in the first nine months of 2018;
- Adjusted EBITDA: Euro 160.8 million, +8.3% compared to Euro 148.4 million in the first nine months of 2018, resulting in an Adjusted EBITDA margin of 44.5%;
- Adjusted Net Income: Euro 83.4 million, +16.3% compared to Euro 71.7 million in the first nine months of 2018;
- Operating Cash Flow: Euro 122.0 million, +13.2% compared to Euro 107.8 million in the first nine months of 2018;
- Consolidated Net Financial Position: Euro 561.2 million as of 30 September 2019, equating to 2.4x last twelve months Adjusted EBITDA.
Andrea Mignanelli, Chief Executive Officer of the Group, commented: “In the first nine months of 2019 the Group continued to achieve strong growth rates, with Revenues increasing by 12%, Adjusted EBITDA by 8%, Operating Cash Flow by 13%, Adjusted Net Income by 16%, and the leverage ratio which further declines to 2.4x Adjusted EBITDA.
The results in the third quarter reflect both the improvement in performance which we had anticipated for the second half of the year, particularly in the Corporate segment of the Credit Information division, and the contribution of the acquisitions completed during the last year. We expect a favorable trend also in the fourth quarter, which will benefit from the contribution of new initiatives, including Cerved Money & GO, the digital invoicing platform that we have just launched.
At the divisional level, Credit Information benefits from good results in the Corporate segment, thanks to the reorganization of the sales force and the contribution of MBS Consulting, consolidated since August. Also the Marketing Solutions division achieved a strong growth rate in Revenues, in virtue of the organisational changes implemented during the course of the year. The Credit Management division continues to improve its operating performance thus maintaining a strong growth trajectory, both on an organic basis and via acquisitions and industrial partnerships.
The group presents a solid financial situation which benefits from strong cash flow generation and which allowed the leverage ratio to further decrease to 2.4x Adjusted EBITDA for the last 12 months, despite the payment of Euro 108 million in dividends and acquisitions, although benefiting from a Euro 40 million payment received from Banca MPS for the anticipated renewal of the servicing agreement.
The Board of Directors also resolved to continue the evaluation of strategic alternatives relating to the Credit Management division by opening a structured process aimed at analyzing in depth the valorization of the division by way of its disposal or combination with other players in the sector.”
Source: Cerved Group Earnings Release