(Finance) – doValue communicates that It would be (the entity created by the Spanish government and Spanish banks in 2012 with the aim of managing and disposing of problematic assets that had been transferred from the four nationalized Spanish financial institutions) did not award the new contract to doValue (the current contract expires in June 2022).
The event – explains a note – was already foreseen as a possibility by doValue, as described in the 2022-2024 Business Plan presented by the Group on 26 January 2022. “Given the highly competitive nature the process conducted by Sareb in recent months (which focused on the level of commissions payable by Sareb to servicers), the new contract would not have contributed positively to the profitability of the Groupand therefore Sareb’s decision does not have a material impact on the financial objectives of the 2022-2024 Business Plan and on the overall strategic direction of the Group “.
Sareb is currently a significant customer of doValue in Spain, and Sareb’s decision will entail a reorganization of doValue’s activities in Spain with the aim of operating at an adequate scale and preserving the profitability of the business in the Iberian Peninsula. In addition, doValue’s growth in Spain in 2023 and 2024, particularly in terms of Ebitda, will be driven by greater value extraction from the GBV under management (excluding Sareb), new servicing agreements and new revenue streams.
doValue reconfirms the targets for the Iberian peninsula in terms of Ebitda for 2024 (35-40 million euros), and the broader financial targets of the Group presented on January 26, 2022.