4Q23 net profit 14% above our estimates. FY2023 net profit at PLN 31m

Quercus TFI released 4Q23 figures with the following highlights: 

- 4Q23 net profit of Quercus TFI came in at PLN 19.0m (vs. PLN 3.5m in 4Q22) and was 14% above our estimates (PLN 16.6m). On a reported basis earnings beat was driven mostly by better net financial income – we note though, that it was lifted by Capitea related bookings, that moved up also other operating costs. On an adjusted basis – earnings beat was driven by lower costs and slightly better revenues, while net financial income was slightly below our assumptions. Net impact of Capitea related bookings in 4Q23 was marginal. 

- Total revenues in 4Q23 amounted to PLN 48.6m (146% y/y, 93% q/q) and were 1% above our expectations. Slightly better success fee was offset by lower than expected management fee. In 4Q23 share of low margin debt funds in total AUM came in at 51% on average (vs. 46% in 3Q23 and 43% in 4Q22). Revenues from purchased redemption orders went up 62% y/y (5% q/q).

- In 2023 success fee increased to PLN 23.8m (incl. PLN 2m from portfolio instruments), vs. PLN 17.1m provision after 3Q23 and vs. our estimates at PLN 23.0m in 2023 and PLN 21m in 4Q23 - we remind, that PLN 1.98m was already booked by the end of 3Q23.