Holaluz achieves a balanced operating result for the business in September

2023-10-31 09:55:02

Hello closed the first half of the year, which ended on June 30, with a normalized operating result (Ebitda) (the one strictly related to business) -5.4 million euros in a first half of the year marked by decrease in electricity consumption – the result of a warm winter – and energy prices that contrasted with the upward trend in 2022, as well as a slowdown in the solar market.

Despite this, the company chaired by Charlotte Pi reached a positive normalized Ebitda of 5.9 million at the end of the third quarter, reaching the break-even point in normalized EBITDA. This allows us to maintain the normalized Ebitda target for the end of the year.

Billing experienced a decrease of 45.4% with respect to the first half of last year due to the context of energy price stabilization added to the end of gas commercialization in October 2022. The solar business has experienced a 35% increase in billing, the result of a greater number of installations and the increase in average average ticket due to a larger installation size and the penetration of flexible assets such as domestic batteries.

The company has reached a record margin of 17.1% in the first semester thanks to the migration of clients to the ‘Fair Rate’ (flat electricity rate) by the ‘Energy Management’ business, and the larger size of the facilities, the sale of batteries and the improvements in supply costs of the solar business. A figure that has been surpassed in the third quarter with a gross margin of 31.2%, associated in part with the seasonality of the ‘Fair Rate’ income.

Contracts

The total number of electricity contracts as of September 30 stands at 325,000 and the number of solar contracts under management (solar installations under management and electricity contract) amounts to 13,803 (+50% year-on-year).

Holaluz consolidates the growth of the solar business with 280 monthly sales and expects to close the year with a number of installations comparable to that of 2022, in a 2023 in which the market for residential solar installations in Spain has experienced a decrease of between 25% and 50% given the decrease in electricity prices compared to 2022 and the high interest rate environment. The gross margin per installation also registers a new record, going from 35.7% in 2022 to 43.8% in the first half of the year and 50% in the third quarter.

Related news

The company values ​​the results of migrating the electricity customer portfolio to ‘Fair Rate’ in the first and second quarters of the year. This change, Holaluz assures, has made it possible to generate savings of 45% annually in direct costs related to customer service. All of this has made it possible to reduce call center costs by 57% – because clients pay fixed monthly rates and, therefore, do not need to contact Holaluz – and 20% of direct personnel costs. .

The company has also offered an update of its business plan for the years 2023-2025. In Energy Management, the company reiterates the forecast of a normalized Ebitda at 24-27 million euros 2024-2025. In solar, Holaluz delays the normalized Ebitda by one year, however reducing the ‘break-even point’ from 800-1,000 installations to around 600 with the implementation of measures to improve operational excellence.