Verve Group shares drop 10% as Q3 results miss consensus

Investing.com -- Verve Group shares fell 10% after the company reported third-quarter results that came in below consensus expectations, despite slightly exceeding some analyst estimates when adjusting for a revenue recognition change that had no earnings impact.

The company maintained its full-year guidance, projecting adjusted EBITDA of €125-140 million, with market consensus currently at €132 million. This unchanged outlook suggests relatively flat adjusted EBITDA performance in the fourth quarter compared to what analysts describe as very challenging comparable figures from the previous year.

Cash flow emerged as a particular concern, showing €-30 million versus €+35 million previously. The company attributed part of this decline to working capital profile issues related to an acquired unit.

The company’s debt position has also deteriorated, with net debt to adjusted EBITDA now standing at 3.1x, a figure that includes pro forma consolidation of acquisitions.

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