doValue turns to profit in 2024, shares jump 6% (updated)

doValue

28/02/2025 09:03

Recasts lead with share movement, adds analyst comment and background in paragraph 5-6

By Alberto Chiumento

Feb 27 (Reuters) - Shares of Italy's doValue DOVA.MI jumped up to 6.4% on Friday after Southern Europe's biggest bad loan manager returned to profit in 2024, helped by lower depreciation and amortization on intangibles.

The company reported on Thursday net income of 1.9 million euros ($1.98 million), up from a loss of 17.8 million euros the previous year. Full-year gross revenue was flat at 479.2 million euros.

For 2025, it forecast gross revenue in the range of 600 million euros to 615 million euros, along with core profit, excluding non-recurring items, of between 210 million euros and 220 million euros, citing strong momentum in the first two months of the year.

"Operating costs in line with expectations allowed doValue to reach the upper end of the adjusted core profit guidance," Equita Analyst Davide Giulia said in a note.

The group had trimmed its guidance to 155 million euros to 165 million euros in August, down from a previous target between 160 million euros and 170 million euros.

It had also slightly cut its revenue guidance to between 460 million euros and 480 million euros.

High interest rates and government support measures in recent years, to lessen shocks from the pandemic and energy crisis, have helped keep impaired loans at European banks low.

This shrank the bad loan market in which debt collectors like doValue operate, putting pressure on them to join forces.

In 2024, declared by doValue a "year of transition cost rationalisation and investments" to support future growth, the company agreed to buy rival Gardant.

The deal, finalised in November, impacted doValue results only for the month of December, the group said in a statement.

It also executed a capital hike of about 150 million euros in December.

At the end of last year, doValue managed 136 billion euros in bad loans, up from 116.4 billion a year earlier.

($1=0.9607 euros)

 (Reporting by Alberto Chiumento; Editing by Elaine Hardcastle and Clarence Fernandez)

 ((Alberto.chiumento@thomsonreuters.com))