Edison Investment Research - Tinexta (TNXT) Tinexta - Growth affected by temporary issues

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Edison Investment Research

Richard Williamson

Tinexta - Growth affected by temporary issues

Tinexta’s H124 results highlighted a weaker revenue profile in Q2 than Q1, mainly due to what management believes are temporary effects, as well as the high level of seasonality in some of the individual businesses. The temporary effects include: 1) a slight delay intra-year to expected new revenues, with management reiterating its underlying growth expectations for the year; and 2) deferred growth from ABF Group by six months due to the political changes in France. The latter leads to a reduction in adjusted EBITDA estimates of 5%, but management continues to guide to a strong year of growth of over 20% including ABF Group.

06/08/2024 1 EN

Underlying

Tinexta

Tinexta SpA, formerly Tecnoinvestimenti SpA, is an Italy-based holding company primarily engaged in the software and Internet services industry. Through its subsidiaries it operates three segments: Digital Trust, Credit Information and Managment, and Innovation and Marketing Services. Digital Trust offers solutions for the digital identity and the dematerialisation of processes with products and services, such as certified electronic mail, electronic archiving, digital signature, electronic invoicing, and solutions for the secure and simplified transmission of legal and financial documents. Credit Information and Managment provides services and products to assess the credit of businesses and individuals, guarantee expected cash flows, and minimise insolvency issues and late payments. Innovation and Marketing Services offers a consultancy platform for enterprises to support them in phases of manufacturing growth and expansion of commercial activites, including abroad.

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IT0005037210 Italy

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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Tinexta - Growth affected by temporary issues

Tinexta - Typical seasonality in Q124

Tinexta - Strongest year since FY18

HgT - Steady earnings growth, stable market multiples

Singapore Post - Results boosted by M&A and reduced losses

Information Services Corporation - Continued momentum in earnings growth

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