Nexi, the leading digital payments provider, has announced its financial results for 2024, highlighting strong growth across various metrics. The company reported a net profit of €731 million, reflecting a 4.1% increase from the previous year. Meanwhile, revenues reached €3.51 billion, up 5.1%, with the operating margin also seeing positive movement at 53%, up 101 basis points according to their latest financial disclosures.
The company’s growth is attributed to successful strategies implemented by management, which focus on innovative product offerings and technological advancements. It continues to expand its presence within the market, as evidenced by growth across all geographic segments where Nexi operates. Notably, the Issuing Solutions sector, contributing 32% of total revenues, saw sales increase by 4.2% to €1.129 billion, and the Merchant Solutions segment, which comprises 57% of revenue, climbed by 6.3% to €1.996 billion.
According to the company's recent announcements, Nexi is set to pay its first dividend since going public, with the proposal of €0.25 per share amounting to €300 million overall. The dividend payment is scheduled for distribution after approval at the shareholders' meeting on April 30, 2025. This marks a significant commitment from Nexi to return value to its shareholders.
Management emphasized their continued efforts to drive efficiencies across operations, contributing to the improvement of the EBITDA, which amounted to €1.863 billion, up 7.1%. The EBITDA margin was recorded at 54%, up 153 basis points from the previous year, showing strong profitability as the company integrates services and capitalizes on synergies.
Nexi’s management, reflecting on the results, highlighted, "We are on track with our targets established for 2024, setting the stage for continued growth. The current financial health of the organization positions us well for our future goals, including our planned shareholder returns." This positive outlook reinforces Nexi's strategic initiatives moving forward.
For 2025, Nexi estimates revenue growth of less than 5%, influenced by expected impacts from business acquisitions and major contract renegotiations affecting the industry. Despite these anticipated challenges, Nexi aims for EBITDA margins to increase by at least 50 basis points and expects to generate excess cash of at least €800 million.
The planned extraordinary buyback program, also valued at €300 million, is seen as another strong signal of commitment to shareholders. The total capital return to shareholders for 2025 is expected to reach €600 million, signifying a 20% increase compared to 2024.
Market reactions to Nexi’s announcements have been largely positive, with shares soaring as investors reacted to the prospect of dividends and the projected buyback. Following the release of their financial results, the stock price experienced fluctuations, closing down slightly by 0.95% at €4.642 prior to confirming these plans.
Analysts remain optimistic about Nexi's stock performance, with expectations for prices to recover if the shares can break above recent resistance levels of €4.85. If Nexi can sustain trading above this level, projections suggest potential targets of €5 to €5.25 could be reached, fostering bullish sentiment as the market digests these corporate developments.
Overall, Nexi’s strategic direction toward profitability, efficient management of operations, and commitment to shareholder returns paints a promising picture for the future of the digital payments leader. The exciting plans for dividend distributions and share repurchases are expected to captivate and retain investor interest, even as the company anticipates potential fluctuations amid changing market dynamics.
With the upcoming results meeting set for April, stakeholders will have the opportunity to learn more about Nexi’s path forward and how the company plans to navigate the challenges anticipated for the new fiscal year.