Italian debt collector doValue cuts outlook

doValue

08/08/2024 07:46

By Enrico Sciacovelli
       Aug 8 (Reuters) - Italy's doValue  DOVA.MI  cut
full-year profit guidance late on Wednesday, citing weaker debt
collection activity in the first six months as it looks to
reduce reliance on the non-performing loan (NPL) sector.
    DoValue lowered guidance for revenue and core profit to
ranges of 460 million to 480 million euros ($502.7 million to
$524.6 million) and 155 million to 165 million euros
respectively.   
    That compares with previous targets of 480 million to 490
million euros and 160 million to 170 million euros in its
2024-2026 business plan in March. The plan envisaged 2024 as a
year of transition, with plans to diversify revenue sources away
from NPLs.
    Impaired loans at European banks have held at very low
levels thanks to government support measures to reduce the
impact from the COVID-19 pandemic and subsequent energy crisis.
    The outlook cut reflected "a potential shift in closing of
secondary sales and a soft collection environment", the
company's statement said.
    The Verona-based business reported a 17.5% drop in
first-half core profit excluding non recurring items as
collections declined by 13.5% year on year, with a marked
slowdown in the Iberia region.
    DoValue, which agreed in June to buy rival debt collector
Gardant, said the gross book value of its loans under management
stood at 117.7 billion euros at the end of June.
($1 = 0.9150 euros)

 (Reporting by Enrico Sciacovelli
Editing by Gavin Jones and David Goodman)
 ((Enrico.Sciacovelli@thomsonreuters.com; +48587720309;))