(Alliance News) - The board of directors of doValue Spa on Wednesday approved its half-year financial report as of June 30, reporting a net profit excluding nonrecurring items of EUR16.9 million down from EUR23.3 million in the first half of 2022.

Net revenues amounted to EUR208.0 million down from EUR237.9 million in the same period last year.

Ebitda excluding nonrecurring items for the period is EUR79.9 million down from EUR83.7 million in H1 2022.

Net debt was EUR479.0 million as of June 30, which compares with EUR432.7 million as of March 31.

Leverage as of June 30 was 2.4x, up from 2.2x as of March 31 and down from 2.3x as of July 31.

Against a backdrop of promising development for the first half of 2023, the group has been awarded some EUR4.5 billion in new Gross Book Value, including EUR2.0 billion from forward flows and EUR2.5 billion from new mandates, covering the Italian market, the Hellenic region and Iberia, with EUR900 million contribution for the former two and EUR700 million for the latter, with an increasing influx of new clients further enriching the group's portfolio.

Looking ahead, "Current macroeconomic conditions portend a recessionary phase in the coming months: the financial difficulties that households and businesses may face due to high interest rates and sustained inflation could lead to an increase in NPE production. The pipeline of potential servicing mandates for 2023-2024 across Southern Europe is currently estimated by doValue at around EUR58 billion and, given the prevailing macroeconomic challenges, is likely to continue to grow in the coming quarters," the company explained in a note.

"More broadly, doValue's business is supported by favorable exogenous tail factors in the medium to long term, particularly as the current strict banking regulation will continue to push banks to manage their balance sheets very proactively and maintain low NPE ratios in the future. In addition, the well-established outsourcing model has been extended from NPLs to UTPs, particularly in Italy, and could be further extended across the credit spectrum, representing a further growth opportunity for the group."

DoValue's stock on Wednesday closed 2.8 percent in the red at EUR4.32 per share.

By Chiara Bruschi, Alliance News reporter

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