Good morning. This is, of course, the Conference Operator. Welcome, and thank you for joining the doValue First Half 2025 Financial Results Presentation. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Daniele Della Seta, Head of Group M&A, Strategic Finance, and Investor Relations of doValue. Please go ahead, sir.
Good morning, everyone. I'm Daniele Della Seta. Today, I'm joined by Manuela Franchi, our Group CEO, and Davide Soffietti, our Group CFO, as we present our last year's results. Manuela will begin with an overview of our performance, including key insights into market and business plans. Next, Davide will provide a detailed analysis of our financial results for the period. Finally, I'll share a brief update on our recently announced acquisition, which addressed some of the questions received by investors. We'll conclude with a Q&A session to answer any questions you may have. Thank you for joining us today. I will now hand over to Manuela.
Thank you, Daniele. Since the significant news of the acquisition, it's a pleasure to talk again about the consistent daily progress while achieving and executing our 2024-2026 strategic vision. While clear strategic direction is paramount for the value future, the successful delivery of our established milestones poses the backdrop of any long-term plan. As you will see from our last year's results, these foundations are indeed exceptionally solid. Following a very positive start of the year, doValue continues to deliver a strong set of results across all of our KPIs, including GDP, P&L, and cash flows, with outstanding year-on-year growth, keeping us on track to deliver on the full year guidance. GDP stood at EUR 141 billion, the highest ever since 2022.
Thanks to robust market conditions and valuable excellent commercial penetration in all of its core markets, new business intent reached EUR 11 billion, already approaching the revised full year target of EUR 12 billion plus. This target is well within reach, just considering the anticipated additional inflows from banking contracts in the calendar for the year. Gross revenue grew 33% year on year, reaching $281 million, driven by growth of non-NPL products. Non-NPL revenue amounted to 57%, progressing well towards our 2026 target. In the second half, the growth from non-NPL revenue outpaced the NPL segment, providing with this a recovering and consolidated trend that doValue has strategically trailed with its 2024-2026 plan. EBITDA stood at EUR 99 million, up a staggering 47% versus H1-24, with margin expansion and a relentless focus on synergies and operational efficiencies across regions. Market integration continues to progress fast and smoothly, with important steps already achieved.
In agreement with the unions for voluntary personnel exits, the merger of the master services completed at the beginning of Q3 and the special services already approved in the executive conference on January 26, when the integration will be fully finalized. By 2026, we will have completed most of the integration plan with the full effect of cost synergies becoming apparent in 2026. This will allow us to focus on the execution of our recently announced acquisition of coeo . The EUR 5 million running synergies for this year have already been reached. Cash flow dynamics were once again very positive, with a remarkable year-on-year increase in free cash flow and operating cash conversion, while on track to achieve our full year guidance of EUR 60 million-EUR 70 million free cash flow. Finally, the acquisition of Coeo is proceeding towards closing by January 26.
We are already working on the regulatory approval, from which we don't see any risk. The brokerage agency, Standard & Poor’s, has confirmed doValue's BB rating, with stable outlook following the acquisition. The long-term financial profile will be unaffected by the acquisition, thanks to the limited increase in leverage and with the deleveraging part. While the business profile is seen as benefiting from the diversification and growth profile of coeo . While coeo will be an extended on brand without any significant integration risk, we are already laying the groundwork for a value creation roadmap to be deployed post-closing in order to reach the most from this very attractive acquisition. If you follow me to page three, you will see the tangible result of our commercial effort.
As of today, we have already generated w EUR 11 billion in new business GDP, approaching the new target of EUR 12 billion we gave as Q1 results for the entire 2025. The outstanding performance shows continued strength in business development in the second quarter, with EUR 800 million new mandates since May. This includes a significant new retiring mandate, one in Spain with a leading banking institution, as well as new UDP mandates in Italy. Additionally, in Italy, a project was started with a major utility to manage their small tickets unsecured and for data remediation. The enrollment into non-financial receivables will prove a significant growth opportunity, further boosted by coeo 's specialized know-how and advanced technological capabilities in this segment.
GDP inflows from listing contracts with banks, which we normally refer to as forward flow, stood very soundly at EUR 2.1 billion in the first half of the year, well above our initial target of EUR 2 billion per annum. This performance was mainly driven by +42% in the flows from Spain, as well as solid flows contributed with Italian and Greek banking partners, which continues to contribute GDP and the credit bank chain from RPM all the way to NPL. Through our full contract alone, we were able to replenish 85% of collection in that first half, contributing to GDP stabilization. Once we include the new mandates in the equation, we can easily see a very positive GDP dynamic underway.
Even in times of positive economic activity and healthy bank balance sheets, market flows continue not only to exist, but to be sufficient to preserve the stability of the group GDP within very high levels. While we have recognized the need for revenue diversification and delivered on that promise, we retain a strong belief in our NPL franchise, which will continue to deliver stable, visible, and returning cash flows in every macro environment. We are working to renew the Santander contract, for which we will provide news in September, and continue our partnership with UniCredit on flow business beyond managing the stock, also after the closure of the current contract in October. We remain positive on potential upsides to the other forward flow contracts as effects of the Italian banking M&A rate. Proof of that is on page four.
We are pleased to report an all-time expansion of the 18-month pipeline at EUR 49 billion. This marks a EUR 14 billion increase from EUR 35 billion identified at the end of 2024, notwithstanding the 25% success rate on the pipeline as of December 31, which the group achieved in the first seven months of the year. In this context, it's important to note that coeo , while not directly impacting the pipeline and we are not currently including coeo clients in the EUR 49 billion, will significantly accelerate and expand the group's ability to manage large volumes of non-financial receivables in an automated manner through its advanced platform, enhancing the group's competitive advantage in the space, as well as potential profitability in that segment. Moving to page five, we would like to provide more details on the value-added services, which are a key pillar of our diversification strategy.
Value-added services made up 20% of H1 gross revenue and increased 70% versus H1 2023. They include both new initiatives announced with the 2024-2026 business plan to diversify the business profile of doValue and unsettled services historically offered to doValue clients. Let's go through them one by one, starting with the new initiatives. First of all, the digital platform. We often mention it in the context of non-financial receivables. It's a digital channel for debt collection being launched in Greece and Italy and by year-end to come in Spain and Cyprus, driving efficiencies throughout automatization and digitalization of debt management, increasing profitability, especially on small tickets unsecured, which are using to bid for non-financial receivables, as well as to manage small tickets in other portfolios. The digital platform will be announced by the digital capabilities of Coeo. Ease will impact this tool to exponentially accelerate its capabilities in 2026.
DoAdvice, our business offering advisory services in relation to loan portfolios, saves underwriting and due diligence, as well as business planning and business modeling services offered to third parties. Stage 2 AI model. It's a proprietary AI model which identifies the richer and the riskier stage 2 borrowers before any credit events occur, allowing for proactive management for both of their stage 2 portfolios, offering significant P&L savings linked to the reduction of portfolio profitability of default. This product will also benefit from the acquisition of coeo , specifically from the KAI Technologies leading AI center. We are running a test with two Italian mid-sized banks on this. Asset management. They closed through Gardant SGR with Italian middle-in assets.
The platform invests in a standard credit through the launch of dedicated funds across different asset classes, offering not only diversification into the stable and scalable asset management business, but also subsequent synergies with our traditional NPL servicing business. FinTHESIS, our online mortgage brokerage business, launched at the beginning of the year in Greece to fill a market gap we identified in the mortgage origination market. It has signed agreements with the most major Greek banks and is already generating very substantial leads, exceeding the regional expectation. We expect this business to continue growing significantly on an organic basis. Dubloita, a company providing data services today in Italy and from September also in Greece. This includes data intelligence, analytics, and business information services, providing comprehensive assets and counterparty intelligence solutions to a wide range of clients.
This servicing supports not only captive banking and SPD clients, but now also third-party non-banking clients. Master Legal Business. It entails legal support services for more complex cases, leveraging our extensive networks of legal experts across jurisdictions, primarily in Italy, but from several now also in Spain. Legal services are the single largest contributor to value-added services gross revenue and are very close to our core business. Finally, master servicing, carried out by doNext. It entails support and admin services like loan admin, accounting, and cash management, portfolio reporting, services oversight, and performance review for securitization vehicles with multiple investors and special services. doNext has significantly strengthened thanks to the merger with Gardant Master Services, becoming the leading master servicer in Italy by IUM, with a 56% market share, EUR 90 billion IUM, 20% of which is from non-captive portfolios.
Value-added services continue to be a key element of the diversification journey, outlined on our business plan, and we are ready to say that since the plan announcement, the progress on this front is undeniable. Moving now to page six, let's look at the outstanding progress we are delivering within this business plan timeframe. With a mix of organic growth and strategic expansion on M&A, at the end of the business plan timeframe, doValue will be much bigger, more profitable, and with much lower financial leverage. All of those targets are just 18 months away and considerably achievable. Last month, when we announced the acquisition of coeo , we provided the business plan targets for 2026, including coeo of around EUR 800 million of gross revenue, of which 55% from non-NPL, around EUR 300 million EBITDA accelerated, and net leverage of 2.2x as of December 2026.
These targets imply an extremely remarkable improvement versus 2023, resulting in a 66% increase in gross revenue, 68% increase in EBITDA, and a remarkable reduction in leverage of nearly 40%. As a result, the current doValue is progressing towards a significantly more sound, brighter, cash-generative, and diversified business, with growing loan-acceptance prospects. This will be the basis of the new business plan, which we will really need in 2026, where we will define our new ambitions and opportunities for the future. On this bright side, let me hand over to Davide, who will take you through the details of this positive first half results.
Thank you, Manuela, and good morning, everyone. On page eight, you can see a summary of the first half's financials. Overall, in the first half, we registered very positive results across all key metrics, with strong growth not only in revenue and LTV, but also on cash conversion. Gross revenue in the first half of 2025 was EUR 281.2 million, showing a strong double-digit growth of 31.6% versus prior year, driven by non-NPL servicing revenues, especially GDP and value-added services, which grew 79% and 70% versus last year, continuing the positive momentum of the recent quarters. Net revenue rose to EUR 254.6 million, 32.6% higher versus first half 2025, thanks to the continued impact of consolidation on outsourcing costs, which decreased by approximately 1% year- on- year, as a percentage of gross revenues to 9.5%.
The EBITDA accelerated to EUR 99.1 million, plus 47.2% versus first half 2024, driven by strong revenue and cost containment initiatives, as well as a successful release of synergies in Italy and efficiency across the group. Double-digit growth continued also in the second quarter, where its EBITDA margin at 35.2% grew from 31.5% year- on- year, thanks to the continued cost discipline alongside the expansion of higher margin business and activity of Gardant. Net income accelerated, delivered strong double-digit growth of plus 72.4%, EUR 11.9 million, higher than first half of 2024, thanks to the strong growth in the EBITDA, which more than offset the increase in financial expenses and minorities. Moving now to page nine, we can find a breakdown of gross revenue per region.
At group level, gross revenue grew plus 31.6% year- on- year, in line with the full year guidance, supported by Gardant contribution, synergies, and continued strength in non-NPL revenue, which reached 37.5% of gross revenue. In the Greece region, gross revenue was stable. As strong as the 97% in the value-added services areas were observed, the lower exposure in the second quarter impacted the revenue. In Italy, gross revenue grew plus 86% year- on- year, driven by Gardant contribution and by a very positive trend in recurring value-added services. In Spain, revenue declined only by EUR 1.8 million year- on- year, and declining reels were mitigated by improvement in all other categories. On the next page, we show how we continue to successfully contain the natural increase in operating costs from the consolidation of Gardant thanks to continued cost discipline, which allows for a lot of savings across functions and markets.
Indeed, cost containment remains a key focus for the group, even in the current context of strong business expansion. In the first six months of 2025, HR costs were up by 29.1% versus the first half of 2024, linked to the expansion of Gardant consolidation and to the increase in bilateral compensation following better than expected performance of the business. HR costs increased due to the onboarding of new portfolios. This effect was effectively mitigated by cost containment measures in Italy and Spain. When it comes to LG, real estate, and LGMA expenses, we recorded an increase of only EUR 3.9 million year- on- year, thanks to already achieved EUR 5 million synergies that mitigated the effect of a Gardant consolidation. On page 11, EBITDA accelerated for the group to EUR 99.1 million, up 47% versus first half of 2024.
This valuation was mainly driven by the increase of Italy and by the continued strong performance of recurring value-added services, driving revenue across the group. EBITDA accelerated margin increases significantly thanks to the accretive impact of both non-NPL servicing and continued focus on cost containment. EBITDA for the Leoni region decreased by 7.3% year- on- year to EUR 49.6 million. Positive trends in UTPs and value-added services were more than upset by year-on-year decrease in disposals in the second quarter. The region delivered an EBITDA margin of 45.6%, continuing to drive group profitability to 35.2% at the group level, despite some onboarding costs of new portfolios in Greece. In Italy, EBITDA rose to EUR 56.2 million, excluding group costs, and increased around EUR 36.6 million since the first half of 2024, thanks to Gardant, as well as to a positive contribution of value-added services to gross revenue.
Gardant continues to contribute proportionately to our full year expectations. In Spain, EBITDA was added to being positive, thanks to continued cost efficiency and new portfolio onboardings. Non-revenue items were very limited at minus EUR 2.6 million, despite the cost of synergies and the coeo acquisition initial fees, leading to an EBITDA reported of EUR 96.5 million. Moving to page 12, we show very positive dynamics in net income evolution, which, excluding non-revenue items, increased by almost 70% year- on- year, despite the higher financial costs and the new minorities related to BPA and Banco BPM and related through the Gardant acquisition. Breaking down the number, we start from a higher EBITDA driven by positive momentum across key products and markets. Pipelines on property plans, equipment, intangibles, loans, and liquid investments were EUR 46.3 million, in line with the collection growth, including also Gardant portfolios.
Financial interest and commissions increased to EUR 33.6 million, driven by the interest for new loans issued in February, which amounted to EUR 8.4 million, including amortized costs, the interest on the new term loan funding the Gardant transaction, which amounted to EUR 14.8 million, including amortized costs, and the residual interest on the 2026 senior security notes delivered in February of EUR 1.3 million. The line also includes EUR 7.3 million non-recurring costs related to the early redemption of the 2026 bond and the redemption of the term loan dedicated to refinancing the 2026 bond, which was not utilized. Income tax for the period was higher due to the one-off effect in the first half of 2024 from the taxpayer in Spain. If we adjust for that, the tax rate is always slightly higher on the back of the higher EBITDA and the consolidation of Gardant's profit-making legal entities in Italy.
Finally, minorities increased due to Gardant's partnership with Banco BPM and BPA Banka. The non-revenue items at net income level amounted to EUR 16 million, mainly due to the aforementioned one-off costs related to the refinancing of 2026 bonds and the one-year delay to a lower expense payment for the exit of employees as part of the integration in Italy. Moving to page 13, let's have a look at the cash flow dynamics, which improved significantly. Cash flow from operation in the first half increased considerably to EUR 86.6 million, up EUR 61 million versus the first half of 2024. Cash conversion reached a notable increase in the first half at 84% versus 30% in the first half of 2024. This positive result was achieved thanks to continued reduction in net working capital, thanks to improved control of the invoicing cycle for stabilization and positive dynamics in the amount of payments.
CapEx was EUR 8 million. Lease payments slightly increased versus the previous year to EUR 10.1 million due to Gardant's offices, mitigated by the real estate efficiencies carried out by doValue. Reliances increased slightly year on year to EUR 5.67 million in the first half, and the initial effects from the voluntary exit program are part of the Gardant integration, which is expected to continue in the second half of the year. Other exchange and other asset allowables were stable year- on- year, with an increase versus the first quarter, mainly related to the temporary impact of the 2024 MBO payments, higher than the first half of 2025 MBO accrued. These negative effects will be completely offset in the second half of the year. Free cash flow was significantly higher than the previous year at EUR 50.5 million, up from -EUR 1.6 million in the first half of 2024.
The EUR 52.3 million increase in free cash flow was a notable result, in line with our ambition to return to the historical levels of cash generation. Minorities of EUR 7.7 million linked to BPA and BPM were distributed in the period, with no other significant payments expected to minorities in 2025. Investment in equity and financial assets includes the announced by doValue in January 2025. On page 15, we show net and leverage position. At the end of the period, net stood at EUR 484 million, down from EUR 514.4 million recorded at the end of 2024, and from EUR 504 million as much as 2025. During the second quarter, we repaid the first branch of the term loan, decreasing our gross debt by EUR 26.3 million. Nevertheless, we closed the quarter with a solid cash position of EUR 132 million and enjoyed a liquidity buffer of EUR 262 million, including on growth holding credit facility lines.
Net leverage at the end of June remains stable quarter on quarter at 2.3x on a proportional basis with 12 months of Gardant EBITDA, decreasing from 2.3x level at December 2024 and 2.9x in June 2024, supported by very positive cash flow dynamics. Despite the EUR 11 million of earnout paid to one for doValue, and the EUR 8 million minorities paid in the second quarter to BPA and Banco BPM. Our credit rating was confirmed at BB with stable outlook in July in the context of the announcement of the acquisition of Coeo, another new board placed at one of the lowest EVs of the industry, reflecting the sovereignty of our asset aligned business model. Let's now move to page 15.
To conclude, we had a very positive first half of the year, with growth rates in line with our full year guidance, which gives us confidence in the ability to position ourselves within the guidance range for the full year 2025, communicated in February. As a reminder, the guidance implies gross revenue between EUR 600 million and EUR 650 million EBITDA, excluding non-revenue items between EUR 210 million and EUR 220 million, and net leverage at 2x, thanks to continued positive cash flow generation. In the context of the Coeo position, we confirm our dividend policies of 60%- 70% of the net income included, excluding NRIs, to be distributed from 2026. We expect the acquisition to close in January 2026, with the 2025 full year numbers to show clean delivery of the guidance without impacts from Coeo contributions. Finally, before turning over to Daniele, let's move to page 16.
Here, you'll find the 2026 business plan targets, including Coeo, which imply significant progress since 2024. The current targets do not include any potential synergies, of which we will show more details in the new business plan in mid-2026. The targets currently include the conservative end of the extended loan to value guidance. We expect to end 2025 at our target leverage of 2x, and 2026 with 2.2x, with a target leverage in our initial 1.5x-1.8x net leverage target in just one year, from 2026 to 2027. As previously mentioned, at the closing of the acquisition, the cash generation for coeo will be decreased by the sale of the debt group resulting from the company's hiring model. The cost of financing the consolidation of the portfolio is included in our cash conversion estimate of 40%- 50% for coeo
As a result, starting from the 2025 level of net debt, in line with our guidance and accounting for the new bond, as well as the expanded free cash flow for doValue and coeo , we reach 2.2x net debt to EBITDA at the end of 2026, in line with our target. Let me now hand over to Daniele, who will dive deeper into the subject of what is stemming from the acquisition of coeo.
Thank you, Davide. It's a great pleasure to outline the acquisition of coeo which redefines doValue's growth trajectory, accelerating our diversification into non-financial receivables. Let's begin by highlighting coeo's standout strength: its technology-driven, customer-centric approach. In e-commerce, delivering an exceptional customer experience is paramount. From the moment a customer visits a website or app, a seamless journey from product selection to checkout is essential. Amazon revolutionized this 20 years ago with its groundbreaking one-click checkout system.
However, the experience shifts dramatically when a transaction phase and collection becomes necessary. The process often sounds bumpy, marked by disjointed phone calls, outdated web portals, cumbersome payment systems, and fragmented communication. This is where coeo steps in, leveraging advanced technology to transform this challenging phase into a smooth, customer-friendly resolution process. coeo prioritizes an outstanding customer experience, setting new standards and ensuring the customer's journey in the collection phase is as smooth as the e-commerce experience. This has allowed coeo to thrive in this vertical. Its method is built around self-learning processes that adapt to the behavior of consumer, recognizing how they communicate and determine the best response. From the moment a file is assigned to coeo , it takes just 65 minutes to automatically set up a payment and resolve the case without any human intervention.
The same process takes more than five days for a traditional operator, involving multiple manual interactions, emails, calls, back and forth validation before reaching resolution. The service portal of coeo is a key component of this, offering a portfolio of services that is unrivaled elsewhere in the industry, making setting outstanding claims easier and faster. This portal has received multiple awards for best-in-class user experience from external third parties. The portal is more than a pay page. It is a service focused on convenience, transparency, and low-effort interaction for debtors, leading to high conversion rates. It is certified by very high rating on Google Reviews and Trustpilot, all above 4 by 5. AI is a game changer for coeo , revolutionizing data analysis and process automation. The modular AI ecosystem, KAI, developed in-house, supports all business processes with maximum flexibility and leverages generative AI to elevate customer service and process efficiency.
It offers 24/7 availability, faster case processing, increased transparency, improved service quality by focusing human agents on higher value-added complex issues, and enhanced compliance through AI-based quality assurance. As of summer 2025, KAI has processed over 1.5 million customer interactions and achieved an automation drive rate of over 65% since establishment in 2023. All of this has been built with internal capabilities concentrated in the legal entity KAI Technologies, which operates as an independent company within the coeo group and then doValue Group, enabling agile responses to new technological developments while remaining closely integrated with coeo 's processes for rapid testing and refinement of innovation. KAI will become the competent centers for AI solutions within the whole doValue Group and will contribute significantly to accelerate the ongoing development of the doValue digital platform.
If you follow me to slide 19, let's move from coeo 's tech advantage to its broader strategic strengths, which go far beyond automation. coeo has a long-lasting and stable client base with very demanding and dynamic customers. As per industry standard practice for non-financial receivables, coeo has annual contracts which are renewed on a rolling basis, providing the customers directly with the service. In the case of coeo , most client relationships are over five years old, with a churn rate close to zero. This stability is a strong foundation for recurring, predictable revenue and is a testament of the very high customer satisfaction and the results of a high degree of integration with its customers' operations. Second, the business model is based on volume, number of files processed, not the actual collection rate.
As previously mentioned, coeo processes 7 million files per year and continues to focus on increasing automation and digitalization in order to increase that number. As a volume-driven business, it is not linked to the credit cycle and is mainly linked to a high degree of operational consistencies and efficiencies. The growth opportunity is substantial. coeo 's commercial pipelines include 30 potential new clients in payment, telecom, insurance, and other sectors in 2025 and 2026, providing significant upside through our estimates. In short, there is no meaningful seasonality in earnings. As shown on the bottom right of the slide, EBITDA is highly stable month over month, contributing around 8%-9% per month, with a max deviation from average contribution of just around 7%.
Lastly, coeo has a very committed management team that has decided to reinvest its exit package into the new coeo and will therefore retain a minority stake, around 3%, in the new entity. That ensures strong long-term alignment without any material impact on doValue's consolidated financials. Finally, I would like to spend a couple of minutes on the financial performance of coeo . In our 2026 business plan target, we have assumed around 10% year-over-year growth for coeo . Here, you can see that in the first five months of the year, this year, coeo grew by 20%, much higher than our conservative expectation. In fact, it grew even faster than the seller's plan, which is much more bullish than our estimates. All this before any revenue synergies. In short, this is a business that grows with its clients, has strong forward visibility, and is structurally stable, both operational and financially.
We look forward to closing this acquisition and delivering to you an enhanced growth profile for doValue one quarter at a time. That's all on our side today. Thank you all for your attention. We will now take your questions.
This is the Chorus call conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. We will pause for a moment as callers join the queue. One moment for the first caller. Please hold the line. The conference will continue shortly. This is the conference operator. We have the first question. If you can hear us loud and clear, sir. We have the first question from Tommaso Nieddu of Kepler Cheuvreux.
Hello, and thank you for taking my questions. The first one on networking capital dynamics, again, very positive. I remember at the previous call, we were talking about around EUR 15 million for the full year. Is it still the case? It seems to go a bit higher than that. That was also a bit offset by higher other assets and liabilities. Can you explain the increase in Q2? Is there something else beyond MBO? The second one is on operating costs, which seems you are doing a great job there in terms of synergies. My question is, are we still talking about only EUR 5 million synergies for the year, or do you think you can extract something more? Just the last one on inflows, especially in Spain. I read in the presentation, in the press release, you mentioned a 42% increase in flows in Spain.
Just a bit more color there. Are you seeing a rebound in activity there? Thank you very much.
Hello. Okay, I will take the first two questions. On network dynamics, as we stated, we are very proud of the results. We are working a lot on this improvement of the process, especially in Greece. We still think that we will align with our targets by the end of the year. We are working to improve, but we want to see the second part of the year to be sure that we are able also to improve the results. As of today, we confirm our guidance, our numbers. In terms of other assets and liabilities, as we say, the main impact, negative impact, is a temporary impact on the MBO side because we have paid the 2024 MBO, and we accrued only the first half of the 2025 MBO. By the end of the year, this impact will be zero.
We have circa EUR 5 million of other change coming from year 2015 and certain payments of a small claim that is in line with our expectation. We don't expect any further increase.
I take the question on Spain. The focus on the organic growth strategy is proving correct because the company is very much focusing on getting new clients and improving the performance with the existing clients. The performance on the portfolio with investors has been much above our expectation. On the bank side, we have achieved other new contracts with the bank on top of the ones we had already gained last year. We are positive also on Santander renewal. We are also adding, as I mentioned, on the value-added servicing part, development on the legal services side that today we only do internally, and we will offer also to non-captive clients from the second part of the year. We have continued our rationalization efforts, especially on the processes side.
Not a personnel effort anymore, but to re-engineer the process behind the NPL and real estate segment in order to extract a business model which has lower, better operating leverage. Last, we see Spain as the first country where the coeo business model will be deployed, based also on the interaction with the key customers of coeo . All in all, Spain is progressing towards the objective we have portrayed for the year-end.
The last question was on the synergies. As we announced, we have already achieved the target of 2025 of $5 million. We will improve the results during this year, but we will benefit most of the higher synergies in 2026 because most of the synergies come also from HR savings, and this will depend on the exit. The exits are arriving now. We closed the voluntary exit scheme this first half, but some people will exit also in the second part of the year.
Okay. Super. Thank you.
The next question is from Simonetta Cheriotti of Mediobanca.
Thank you. Good morning all. My question is on value-added services, on slide number five. You have commented on the various lines of services. Could you help us understand which are the most relevant, the relative size of this segment? Another question is on cash flow. You have a EUR 60 million-EUR 70 million target for the full year that has been confirmed. This amount compares with a level achieved in the first half of EUR 30 million. Is that correct? Thank you.
Can you hear me, Simonetta?
Yeah.
Okay. Perfect. Sorry, we're having some troubles with the microphones today. The main contributors are the legal services, the data services, and master servicing, with legal providing around EUR 10 million, EUR 11 million of revenues, master around EUR 6 million, and data services around also EUR 6 million. The rest is pretty much where they cross the other products. Obviously, there are some which are still in infancy phase, like doAdvice, Synthesis, that will grow in the next quarters, and also the deployment of data services and legal services to clients of Gardant, as well as to third-party clients. It's something we have started this year, we'll progress from there.
On the personal side, simonetta, you're right. EUR 30 million is comparable with our guidance. I want to just highlight that with only free cash flow, we have the earnout and the dividends to minorities, and the EUR 3 million equity investment that will not happen in the second half. In the second half, we don't expect any other equity cash out.
Thank you.
Yeah.
The next question is from Davide Giuliano of Equita.
Good morning, everybody, and thank you for taking my questions. I have three. The first one on non-guidance. How do you see gross revenues growth in the second half, taking into account the more challenging comparison base represented by Q4 2024 due to the very strong value-added services last year? Can you give us more detail on the mix of gross revenues you assume in the guidance between servicing and value-added services? The second one on the geographical breakdown in Italy. Can you comment on the reasons why servicing is stable Q on Q despite the typically favorable seasonality? If you could provide the like-for-like comparison, it would be extremely helpful compared to last year. In Greece, can you comment on the reasons why servicing revenues are declining year on year? I don't know. Maybe there are some indemnity fees. The last one on changing other assets and liabilities.
The impact was very negative in the quarter. Could you elaborate the EUR 15 million related to MBO reported in the presentation and what you expect in the future? Correct me if I am mistaken, but the only truly recurring impact should be IFRS S16 lease payments, which should be around -EUR 18 million for the whole year. We are already well above that. I was wondering if the MBO component could be also a recurring item in the coming years. Thank you.
Yeah. On the last question on the cash flow items, the recurring items are the leasing payments. It would be between EURb 19 million and EUR 20 million per year, and the predominantly cost per roughly EUR 15 million. The MBO is only a temporary impact now because what we have paid in May and June 2025, the full amount of the MBO of 2024. We have the cash out. That was not in our EBITDA. In our EBITDA, we have the cost of the first half of the MBO. That is roughly half. This is different. When we go at the end of the year, we will accrue fully the MBO of 2025, and it will be equal to the amount of the 2024, similar at least, of the amount of cash out we paid for the 2024. Versus last year, we also paid this bonus.
For 2024, we paid a 2023 bonus in July, not in June. This also impacts the difference between the two. The other items that we have in the other revenues, answered to Simonetta, was mainly payments for legal cases and IFRS 16. That is roughly the EUR 5 million. We expect this, and with this much higher absorption of other assets, it would be compensated by a higher contribution of working capital dynamics. In terms of Greece, I confirm your suggestion that the difference is mainly due to the lower sales in the second quarter, but in terms of full year, we expect to have a contribution of sales in line with the last year.
In terms of full year results, we confirm our target in terms of non-NPL revenues to be roughly up to 40% of the year, with the contribution of value-added services that will grow compared to the previous period. In Italy, it's mainly we already answered the first quarter results. Our collection quarters usually have a certain seasonality that usually concentrates most of the collection in the last part of the year, but it could happen that on the portfolio, we can have a huge transaction that we anticipate as this first half, certain collection in the first part of the year. This is the main impact. The same with the PPA accounts that we have with the Gardant acquisition. We have certain revenues that mature each first quarter of the year. This is also why the first quarter has a higher amount of revenues compared to our historical data.
As a reminder, if you wish to register for a question, please press star and one on your touchstone telephone. For any further questions, please press star and one on your touchstone telephone. That is all set. There are no more questions registered at this time, sir. Excuse me, we do have a follow-up from Simonetta Cheriotti of Mediobanca. Please go ahead, madam.
Yes. Of course. On a consolidated basis, the level has been quite regular in the first quarter and second quarter, around EUR 77 million, EUR 78 million of operating costs. This level may be considered as recurring, or should we expect more in the last quarter of the year with the seasonality on revenues also reflected on costs? Thank you.
On the cost side, as you know, as we mentioned, we are continuing to work to reduce the cost base. We have projects in place in all the country to optimize the cost base. Our target is to reduce it or run increase. The only cost that will be in line usually with the increase of revenues is always the outsourcing fees that are proportional to the volumes of the revenues. Also on that side, we already for the first half, we were able to reduce the average percentage of outsourcing flow on the revenues by 1%. This is our main target we are focused on.
Thank you.
Once again, for any further questions, please press star and one on your telephone. Actually, we have a follow-up question from Davide Giuliano of Equita
Sorry, I had some issues with the line. I had two follow-ups on my question. I don't know if you were able to hear me before because I had some issues. The first one was on value-added services, if you can be a little bit more precise on what you expect in 2025, just to understand the servicing revenue dynamics year on year. The second one on the MBO on cash flow, I was wondering also if we can expect a similar impact to 2025, also in 2026, and going onwards. Thank you.
Davide, on the value-added services, we have continued the trend of growth. The percentage of those, vis-à-vis the total, will increase, given the targets we have of revenues of more than EUR 600 million for the year. Even if last year was important in the second part, we look to the full year performance and we see a growth which is adding towards the 40%-45% target we had before coeo for next year. We will get closer to the 40% if you do the proportion on the year only of this component. On the MBO, as Davide said, it's a neutral effect on the full year. It's just a question of concentrating it more on the first half rather than the second half. Last year, the payment was done in July, as well as the accrual for the payments of the following year.
This year, you see the payment in the first half and the accrual in the second half. The net impact is not dissimilar from last year, given also last year was a good year of performance. The MBO is linked to the performance of the business. It was different in the year before where the performance was not that good. I hope I addressed your question if any other doubt.
Thank you. Very, very clear.
Daniele Della Seta, there are no further questions, sir.
Thank you so much, and we wish you all a very good break for the summer.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.