Skarbiec Holding Reports 2Q23/24 Net Loss, but Maintains Growth Trajectory in AUM
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2Q23/24 net loss at PLN -0.2m vs. our estimates of PLN 2.0m net profit - Skarbiec Holding released 2Q23/24 (calendar 4Q23) figures with the following highlights:
■ Distribution costs came in at PLN 6.6m (23% y/y, 6% q/q) and represented 42% of fixed fee (vs. 43% in 3Q23 and 46% in 4Q22). Total HR costs dropped -14% y/y (-6% q/q) and other costs grew 10% y/y (45% q/q).
■ At the end of 4Q23 AUM of Skarbiec TFI came in at PLN 5,884m (23% y/y, 9% q/q). Y/y growth was driven by rising AUM of equity&mixed funds (31% y/y), debt funds (14% y/y) and portfolios (30% y/y). Only dedicated funds saw -55% y/y drop. Similar trends were observed on a quarterly basis with AUM of equity&mixed funds up 15% q/q, portfolios higher 12% q/q, debt funds rising 2% q/q and assets of dedicated debt funds down -55% q/q.
■ In 4Q23 net flows to Skarbiec TFI (ex. portfolios) amounted to PLN +17m (vs. PLN +28m in 3Q23) and in FY 2023 net flows came in at PLN 83m.
Our view: NEUTRAL
4Q23 (calendar) net result was weaker than we had expected, as Skarbiec reported net loss of PLN -0.2m vs. our expectations of net profit at PLN 2.0m. Earnings miss though, was relatively small and was driven by slightly lower revenues coupled with slightly higher costs and lower net financial income. Fixed fee was slightly better than we had expected, but this was more than offset by lower success fee (PLN 2.9m vs. PLN 4.2m expected). Costs came 4% higher than expected due to higher operating costs. We see the 4Q23 results of Skarbiec as neutral, despite earnings miss, as the numbers do not change our view on incoming quarters. AUM are on the growth path with fixed fee rising 24% y/y, key opex lines remain under control and success fee is determined by performance of SKH’s funds. In our earnings estimates we assume Skarbiec Holding to report PLN 3.0m net profit in 2023/24e and PLN 12.5m in 2024/25e. At the end of 4Q23 Skarbiec had PLN 124m of cash&equivalents (vs. PLN 129m in 3Q23) vs. current MCAP of PLN 178m.
