ION Platform - comment

Headline numbers from ION Platform look strong, and even on an actual EBITDA basis, leverage has fallen from 8.2x to 8.05x. This should support sentiment and secondary trading levels, but with no meaningful cash deleveraging and continued leakage through loans to affiliates, we remain cautious.

The company grew both revenue and EBITDA year on year, with revenue up 7% across the three segments and ION Corporates delivering particularly strong 9% growth. The company appears to have repurchased approximately €210m of bonds, although disclosure lacks clarity.

Cash deleveraging remained limited, while the company issued net loans to affiliates (dividends) of approximately €350m. Cost savings are progressing, but the gap between actual and adjusted EBITDA continues to widen as management action further synergies that have not yet translated into realised cash savings.

Call is later today at 4 pm.