Taaleri: Good result in a tough market - investment income behind the miss versus our estimates - Nordea

Taaleri’s continuing earnings of EUR 9.3m declined 9% y/y and were 6% below our estimate. The decline is almost entirely attributable to Garantia, where continuing earnings declined 23% y/y (insurance revenue -7.5% y/y), although missing our estimate by only 4%. Private Asset Management continuing earnings grew 4% y/y. Total segment reporting income of EUR 8.6m declined 49.5% y/y, driven by EUR -1.2m net income from investment operations (EUR 6.3m in Q1 2024), which also explains the majority of the 20% miss to our estimates. Segment reporting EBIT of EUR 0.5m was below our EUR 2.7m estimate, explained by the above factors. SolarWind III fundraising continues, but falling short of the EUR 700m target is likely due to the current market conditions, which could lead to some slightly negative consensus estimate revisions. Wind II & III and SW funds are in exit phase and sales negotiations are ongoing. We view the underlying results good in the current market environment and we believe the weak market commentary affecting SW III fundraising, among others, was to be expected.