Cerved Group SpA

Overview Key strengths Key risks Good revenue visibility thanks to a high share of subscription-based revenues. Consolidation of the Italian banking sector and challenging macro conditions that have resulted in company not having won any material new nonperforming loan (NPL) portfolios leading to a declining share of recurring revenues and assets under management (AUM). Market leading position in business information and risk analytics in Italy with high entry barriers thanks to its comprehensive database built over more than 40 years. Limited scale compared to larger peers such as Dun&Bradstreet or Moody?s and lack of geographical diversification with more than 95% of revenue coming from Italy. Strong profitability with above average EBITDA margins of more than 40%. Shareholder friendly

...Challenging macroeconomic conditions have led to slightly weaker than expected operating performance in 2023. Revenue declined by 4.4% year on year during 2023, negatively affected by lower activity within risk intelligence. This was due to higher interest rates that reduced the amount of real estate appraisals in Italy because less mortgages were in the market, contract negotiations with corporate clients linked to credit information scores also temporary slowed down volumes. The credit management business also contracted because of the lack of new...

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