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MarketScreener Homepage  >  Equities  >  Italian Stock Exchange  >  Tinexta S.p.A.    TNXT   IT0005037210

TINEXTA S.P.A.

(TNXT)
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Tinexta: Positive Trend of Results Accelerates in Q3 Guidance for 2020 Raised

11/12/2020 | 10:07am EST

PRESS RELEASE

Tinexta: Positive Trend of Results Accelerates in Q3

Guidance for 2020 Raised

Results approved at 30 September 2020

  • Revenues: €188.9 million, +4.3%
  • EBITDA: €55.6 million, +20.4%
  • Net Profit: €26.3 million, +37.8%
  • Adjusted Net Profit: €28.5 million, +9.0%
  • Free Cash Flow: €52.6 million (€36.6 million in the first nine months of 2019)
  • Net Financial Debt: €93.4 million (€129.1 million at 31/12/19)

In light of the positive results, the Board of Directors revised the Guidance for 2020:

  • Revenues: over €260 million (previously: over €250 million)
  • EBITDA close to €80 million (previously: €72 million)

Conversion of the JV with LuxTrust into a Commercial Alliance

Rome, 12 November 2020. The Board of Directors of Tinexta S.p.A., a leader in digital services and innovation, approved today the Interim Report on Operations at 30 September 2020, which recorded the following growth: Revenues +4.3%, EBITDA +20.4% and Net Profit +37.8% with a Free Cash Flow of €52.6 million, up sharply from the €36.6 million of a year earlier.

Chairman Enrico Salza commented "In a context where a state of emergency exists as a result of the Covid-19 pandemic, Tinexta has offered its industrial, financial and professional customers suitable and innovative solutions to deal with the crisis. The Company reported positive results in the first 9 months of the year and continued to invest in the expansion of the portfolio of activities, to serve companies better, with the entry into the Cybersecurity market, thus laying the foundations for durable and sustainable development of the Group in the future."

Chief Executive Pier Andrea Chevallard commented: "Tinexta's business model has allowed positive economic and financial results to be reported even during an extraordinarily difficult time for markets, reporting an acceleration in the Third Quarter, which allows, even in a context of deep uncertainty, to forecast Revenues for the year 2020 to grow to over €260 million, with EBITDA close to €80 million. In addition, the growth prospects in the medium/long-termwill benefit from the entrance of Tinexta in the Cybersecurity market."

Tinexta S.p.A. - Press Release of Results at 30/09/2020

1

CONVERSION OF THE JV WITH LUXTRUST INTO A COMMERCIAL ALLIANCE

At the end of the two-year period following the investment, the shareholders InfoCert and LuxTrust Development S.A. have verified a divergence of strategic objectives. In fact, the shareholder LuxTrust Development believes that it is a priority in the coming years to focus LuxTrust's attention on its core markets to ensure a strong development of the digital economy. Therefore, by mutual agreement, it was decided to proceed to dissolve the Joint Venture and transform it into a strong commercial alliance. In this context, InfoCert will collaborate with LuxTrust and will pursue its strategy in Europe with the aim of creating a pan- European leader in Trust Services.

Today the Board of Directors of Tinexta took note of the communication received on 9 November sent by LuxTrust Development, in accordance with the Shareholders' Agreement of 21 December 2018. The communication was the notification of the exercise of the Call Option on 6,207,777 class B shares held by InfoCert S.p.A., which correspond to 50% of the share capital of LuxTrust. The exercise will take place at the original subscription price of €12.0 million.

GROUP CONSOLIDATED ECONOMIC RESULTS AT 30 SEPTEMBER 2020

Summary Consolidated

30/09/2020

%

30/09/2019

%

Change

Change %

Income Statement (€m)

Revenues

188.9

100.0%

181.2

100.0%

7.7

4.3%

Total Operating costs*

132.8

70.3%

131.4

72.5%

1.4

1.1%

Costs of raw materials

6.6

3.5%

5.1

2.8%

1.5

28.6%

Service costs

59.1

31.3%

59.5

32.8%

-0.4

-0.7%

Personnel costs *

60.5

32.0%

58.8

32.5%

1.7

2.9%

Contract costs

5.4

2.8%

5.9

3.3%

-0.6

-9.7%

Other operating costs

1.3

0.7%

2.1

1.2%

-0.8

-36.1%

EBITDA before Stock Option

56.1

29.7%

49.7

27.5%

6.3

12.7%

Stock Option costs

0.5

0.3%

3.6

2.0%

-3.1

-86.5%

EBITDA

55.6

29.4%

46.2

25.5%

9.4

20.4%

Depreciation, amortisation, and provisions

18.5

9.8%

16.5

9.1%

2.0

11.8%

Operating Profit

37.1

19.6%

29.6

16.4%

7.5

25.1%

Financial Income

1.3

0.7%

0.3

0.2%

1.1

378.2%

Financial charges

2.1

1.1%

2.2

1.2%

-0.1

-4.9%

Net financial charges

0.8

0.4%

1.9

1.1%

-1.2

-60.5%

Profit of equity-accounted investments

0.1

0.0%

0.0

0.0%

0.1

6939.1%

Profit before tax

36.4

19.3%

27.7

15.3%

8.71

31.4%

Income taxes

10.1

5.3%

8.6

4.8%

1.5

17.2%

Net Profit

26.3

13.9%

19.1

10.5%

7.2

37.8%

After a slowdown in March and April, due to the restrictive measures imposed by the Covid-19 pandemic, the resumption of activity since May has allowed the Group to report better-than-expected results in the first 9 months of the year.

The results of the first 9 months include the company PrivacyLab S.r.l., consolidated as of 1 January 2020. The effects of the contribution of PrivacyLab S.r.l. are reported below as a change of perimeter.

Tinexta S.p.A. - Press Release of Results at 30/09/2020

2

Revenues increased from €181.2 million at 30 September 2019 to €188.9 million at 30 September 2020, an increase of €7.7 million or 4.3%. The increase in Revenues attributable to the change in perimeter for the consolidation of PrivacyLab S.r.l. is equal to 0.5%, organic growth is equal to 3.8%.

Operating costs, excluding Stock Option costs, increased from €131.4 million in the first nine months of 2019 to €132.8 million in the first nine months of 2020, an increase of €1.4 million or 1.1%. The increase in Operating Expenses attributable to the change in perimeter is 0.3%, the remaining 0.8% is attributable to organic growth.

As a result, the Group's EBITDA in the first nine months of 2020 amounted to €55.6 million, an increase of €9.4 million, or 20.4%, compared to the first nine months of 2019.

The item Depreciation, write-downs and provisions, amounting to €18.5 million, recorded an increase of about €2.0 million compared to the first nine months of 2019. The increase was mainly affected by amortization of Intangible Assets (+€1.2 million), in particular on databases and software, as well as increased provisions for the write-down of commercial receivables (+€0.5 million) and provisions for risks (+€0.3 million).

The operating result at 30 September thus reached €37.1 million, an increase of €7.5 million or 25.1%.

Net financial charges in the first nine months of 2020 amount to €0.8 million (€1.9 million in the first nine months of 2019). The renegotiation of three loans during the period resulted in the recording of non- recurring financial income of €1.1 million.

The Group's net profit in the first nine months of 2020 reached €26.3 million, an increase of €7.2 million, or 37.8%, compared to the same period of the previous year.

Free Cash Flow in the first nine months of 2020 amounted to €52.6 million, compared to €36.6 million in the same period of 2019.

The comparison between Q3 2020 and Q3 2019 follows.

Summary Consolidated

Income Statement

(€ m)

Q3 2020

%

Q3 2019

%

Change

Change %

Revenues

65.1

100.0%

54.6

100.0%

10.5

19.2%

EBITDA before Stock Options

21.6

33.2%

14.1

25.8%

7.5

53.4%

EBITDA

21.2

32.5%

13.8

25.3%

7.4

53.4%

Operating Profit

15.4

23.7%

8.3

15.2%

7.1

86.1%

Net Profit

10.3

15.9%

5.1

9.3%

5.3

103.2%

Adjusted Net Profit

11.8

18.1%

7.0

12.8%

4.8

68.2%

Free Cash Flow

23.6

36.3%

12.9

23.6%

10.8

83.5%

Adjusted Group Results

The following are the Adjusted economic results before (i) non-recurring items, (ii) cost of Stock Option plans,

  1. amortization of other intangible assets that emerged when allocating the price paid in Business Combinations, (iv) adjustment of liabilities for contingent consideration related to acquisitions, net of related tax effects.

Non-recurring items

During the first nine months of 2020, non-recurring revenues of €0.1 million were achieved, relating to insurance compensation on non-recurring costs of previous years, and non-recurringoperating costs of €1.0 million were incurred, of which €0.9 million for charges related to acquisitions of target companies.

Tinexta S.p.A. - Press Release of Results at 30/09/2020

3

Non-recurringfinancial income includes €1.1 million as a result of the renegotiation, concluded in the period, of three loans.

Non-recurringtaxes include non-recurring income equal to a total of €1.0 million, referring to €0.7 million to the occurrence deriving from the cancelation of the IRAP 2019 tax due balance provided for by the so-called "Relaunch Decree" and for €0.4 million to the Patent Box benefit relating to the 2019 fiscal year.

In the first nine months of 2019, non-recurring operating costs of €1.8 million, non-recurring financial income of €0.1 million and non-recurring tax revenues of €0.7 million were recorded.

Stock Options Plan

The Costs related to the Stock Options Plan 2020-2022 are equal, in the first nine months of 2020, to €0.5 million and compare with €3.6 million the previous year (related to the Virtual Stock Option Plan concluded in 2019).

Amortization of other intangible assets

The amortization of other intangible assets that emerged when allocating the price paid in Business Combinations amounted to €4.4 million (in line with the €4.4 million recorded in 2019.)

Contingent consideration related to acquisitions

Adjustments in contingent consideration related to acquisitions resulted in Financial income in the first nine months of 2020 of €0.2 million (Financial charges of €0.1 million in 2019).

Group Results adjusted for Business Segment

The tables below set out the economic results adjusted by business segment, compared with the same reference period as the previous year.

Abbreviated Adjusted Income

9 Months

EBITDA %

9 Months

EBITDA %

Change %

Statement by Business Segment

at

at

Change

30/09/2020

30/09/2019

Total

Organic

Perimeter

(€ m)

30/09/2020

30/09/2019

Revenues

Digital Trust

82.6

76.8

5.8

7.5%

7.5%

0.0%

Credit Information & Management

55.6

52.7

2.8

5.4%

5.4%

0.0%

Innovation & Marketing Services

50.7

51.6

-0.9

-1.8%

-3.5%

1.7%

Other Segments (Parent Company)

0.0

0.0

0.0

n.a.

n.a.

n.a.

Total Adjusted Revenues

188.8

181.2

7.7

4.2%

3.7%

0.5%

EBITDA

Digital Trust

22.0

26.6%

21.1

27.4%

0.9

4.4%

4.4%

0.0%

Credit Information & Management

17.6

31.6%

12.7

24.0%

4.9

38.8%

38.8%

0.0%

Innovation & Marketing Services

23.6

46.5%

23.2

44.9%

0.4

1.7%

-0.6%

2.3%

Other Segments (Parent Company)

-6.2

n.a.

-5.4

n.a.

-0.8

-15.6%

-15.6%

0.0%

Total Adjusted EBITDA

56.9

30.2%

51.6

28.5%

5.4

10.5%

9.4%

1.0%

Tinexta S.p.A. - Press Release of Results at 30/09/2020

4

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Disclaimer

Tinexta S.p.A. published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 15:06:08 UTC


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Net income 2020 37,9 M 46,1 M 46,1 M
Net Debt 2020 95,3 M 116 M 116 M
P/E ratio 2020 25,9x
Yield 2020 1,19%
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Spread / Highest target 16,1%
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Pier Andrea Chevallard Chief Executive Officer, Director & GM
Enrico Salza Chairman
Oddone Maria Pozzi Group Chief Financial Officer
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