Good morning. This is the Course Call Conference Operator. Welcome, and thank you for joining the doValue nine month 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 IR of doValue. Please go ahead, sir.
Good morning, everyone. I'm Daniele Della Seta, Head of Investor Relations and M&A at doValue. Today, I'm joined by Manuela Franchi, our Group CEO, and Davide Soffietti, our Group CFO, as we present our nine-month results. Manuela will begin with an overview of our performance, including key insights into market and business trends. Next, Davide will provide a detailed analysis of our financial results for the period. We conclude with a Q&A session to address any questions you may have. Thank you for joining us today. I will now hand over to Manuela.
Good morning. Building on last week's successful bond issuance to finance the co-acquisition, I'm delighted to share the strong momentum behind our 2024-2026 strategic plan. Today's results reaffirm the strength of our foundations, with consistent performance across all key metrics and a clear path towards our full-year guidance. The first nine months of 2025 have been marked by solid profitability and continued cash flow generation. Non-NPL revenue continues to drive diversification and represents 37% of gross revenue, fully aligned with our strategic vision. EBITDA ex NRI grew 43% year-on-year, supported by accelerated synergies and disciplined cost management, representing a higher percentage of full-year target performance compared to 2024. New business intake already exceeds the revised full-year target at EUR 12.4 billion, reflecting continuous strong flows from locked-in contracts in the third quarter, evidence of the stability of our business.
Operating cash flow more than doubled year-on-year, thanks to a threefold improvement in cash conversion, in line to reach the full-year guidance of EUR 60 million-EUR 70 million free cash flow in 2025. Finally, the recent successful issuance of EUR 350 million senior notes due November 2031 eliminates any financing risk for the co-acquisition, reinforces our established position in the capital markets, and it does at an excellent fixed rate of 5%, with a first-time six-year maturity for doValue and the sector. The regulatory approvals for the acquisition are progressing smoothly, and we remain on track to close by January 2026. This timeline allows us to demonstrate continuous delivery on our full-year guidance on a standalone basis, something we are fully confident in achieving given these nine-month results. If you follow me on page three, you will see the tangible results of our commercial effort.
In the first nine months, we have already reached the revised full-year target of more than EUR 12 billion, with EUR 12.4 billion in new business GBV. The positive momentum in new business continued in the third quarter, with new mandates from a leading Spanish bank and new UTP flows in Italy, further strengthening our UTP segment. We foresee for the full year up to EUR 14 billion. UTPs now account for 8.5% of our GBV, confirming the progress we are making in diversifying our portfolio and capturing opportunity beyond traditional MPL. GBV inflows from locked-in contracts with banks, which we normally refer to as forward flow, continue to deliver solid flows in the third quarter. Once again, they were able to cover 85% of collections.
This performance was driven by sustained contribution across countries, with Spain showing a remarkable +46% increase in flows from Santander, alongside continued inflows from Italian and Greek banking partners, which reads very well with the potential renewal in the short term of the Santander contracts. These flows confirm the recurring nature of our MPE franchise, which remains a cornerstone of our strategy and a source of stable, visible cash flows. The new business inflows over the first nine months, together with those secured in 2024, further underscore the long-term resilience of our traditional MPE servicing model, even in periods of economic strength and healthy bank balances. Building on our latest commercial milestone, the extension of the BPER partnership to include the Banca Popolare di Sondrio perimeter, we anticipate an even higher contribution from forward flows going forward, net of the exit of UniCredit from the perimeter from November 1.
Our current pipeline comfortably exceeds the annual new business target of EUR 6 billion, excluding forward flows, providing clear visibility on delivery. Looking ahead, we see an estimated EUR 45 billion of mandates in the market over the next 18 months, with significant opportunities in Italy and Greece and promising prospects in Spain, particularly in the banking sector. Non-financial receivable remains a major growth avenue, further enhanced by coeo specialized expertise, technology, and client relationships. Let's move to the next page. Page four provides further proof of this strength through the expansion of our strategic partnership with BPER Group, announced last week. This agreement follows BPER's recent acquisition of Banca Popolare di Sondrio and significantly enhanced the scope of our existing joint venture, which is 70% owned by doValue and 30% by BPER.
The GV currently manages approximately EUR 2.7 billion of MPEs and benefits from long-term servicing rights until December 2033, including 50% of new UTP inflows and 90% of new MPL inflows generated [audio distortion] by BPER Group, which has aggregated customer loans of around EUR 126 billion, an increase of roughly 40% compared to BPER pre-merger. This expansion, which was not contractually provided for, significantly increases the potential inflows under the existing contracts and reinforces the sustainability of our forward flow model. Beyond the servicing rights, we expect the partnership to contribute stock in mid-2026 from the enlarged BPER Group perimeter. In addition, doValue will acquire a minority stake of 5.1% in Alba Leasing, Italy's fourth-largest leasing operator, with total assets of EUR 5 billion and an MPE ratio of approximately 5%.
The investment was made at very attractive valuation, with a limited cash outlay of EUR 6 million that does not impact our leverage targets for 2025. This small acquisition will give us a bull seat in Alba Leasing and could open further opportunities to service MPEs from Alba Leasing, given the servicing partnership with its two largest shareholders, BPER and Banco BPM, and a portfolio with an MPE ratio of more than 4% on EUR 4 billion of assets. This proactive approach confirms doValue's positioning as BPER Group's trusted partner, one of the most dynamic players in the Italian market, and underscores the strength of our value proposition for banks. Moving to page five, we would like to provide a status update on the integration of Gardant, which remains firmly on track to deliver all promised synergies, reinforcing our ability to execute complex projects effectively.
It's important to highlight that despite the recently announced acquisition of coeo, we have been fully focused on the integration of Gardant and the consequent release of synergies. As you probably remember, we guided up to EUR 15 million annual pre-tax synergies, with approximately EUR 5 million already achieved in 2025. These synergies are primarily cost-driven for 80%, complemented by revenue synergies for 20% from cross-selling opportunities and enhanced service offering. The integration plan is structured around 17 projects grouped into eight work streams covering critical areas such as business model optimization to drive workforce efficiency and streamline corporate functions, merger of master servicing platforms doNext and Master Gardant, unlocking savings in back-office operations and improving scalability, HR savings through voluntary exits, optimized outsourcing practices, and reducing hiring needs thanks to a more stable workforce, IT and process harmonization, ensuring operational consistency and cost efficiency across geographies.
On the revenue side, synergies come from the extension of doValue services to Gardant mandates, including offerings such as doData, Master Legal, and Real Estate services. These initiatives allow us to leverage our specialized capabilities and create incremental value for clients across both platforms. To date, we have achieved EUR 13 million on a run-rate basis, and by 2026, the full effect of the promised EUR 15 million will be visible, supporting margin expansion. On page six, we go through our most recent achievement, the successful issuance of EUR 350 million senior secure notes due November 2031, confirming our strong and proven access to the capital markets. This is our second bond issuance in 2025, following the February transaction that effectively reopened the bond market to our sector, a clear testament to our credibility in financing vis-à-vis comparable companies.
The new issuance was upside from EUR 300 million original offering on the back of exceptionally strong investor demand, over 3x the initial offering, highlighting the confidence of the market in our strategy and financial profile. The notes carry a fixed coupon of 5.375%, significantly below our underwriting assumption, and 163 basis points lower than the February issuance, with a longer tenor that extends our maturity profile, removes near-term refinancing risk, and spreads out the maturity of the two bonds, which are now 21 months apart. This established access to capital markets gives us strategic flexibility. We can optimize our capital structure further by refinancing higher-cost instruments, including the 2030 bond, which became callable in 2027. These actions could allow us to unlock lower rates and increase cash flows while maintaining a competitive funding profile over the medium term.
The successful transaction reinforces investor confidence and underlines doValue's ability to secure attractive financing conditions, supporting our long-term growth ambitions and diversification strategy. Additionally, with the issuance, we optimize financial costs by avoiding the drawdown of the bridge facility to finance the acquisition of coeo, which we expect to close by January 2026. I will now hand over to Davide, who will take you through the financials.
Thank you, Manuela. Good morning, everyone. On page eight, you can see a summary of the first nine months' financials. Overall, in the first nine months, we registered very positive results across all key metrics, with solid growth in EBITDA, once again driven by our non-NPL business. Gross revenues in the first nine months of 2025 were EUR 404 million, showing a solid double-digit growth of 28.9% versus previous year, a trend once again driven by non-MPL revenue, which determined more than 50% of growth at group level, continuing on the positive momentum of the recent quarters.
Net revenue rose to EUR 364 million, 28.9% higher versus the nine months of 2024, mirroring the gross revenue growth in the presence of a stable trend in outsourcing costs on a year-on-year basis. EBITDA ex NRI was EUR 137 million, growing 43.2% versus the nine months of 2024, supported by the successful release of synergies in Italy and cost savings in Spain. EBITDA ex NRI margins stood at 34%, up by 3.4 percentage points from 31% on a year-on-year basis, thanks to continued cost discipline alongside the impact of synergies related to the acquisition of Gardant. Net income excluding recurring items more than doubled to EUR 12 million from EUR 5 million the prior year, thanks to the growth in EBITDA, which more than offsets the increase in financial expenses and minorities.
Moving now to page nine, we can find a breakdown of gross revenues by region. In the Lyric region, gross revenues were stable, down -0.7% year-on-year, as solid dynamics in non-NPL revenue were offset by lower disposals in the nine months, which impacted the revenue. In Italy, gross revenue grew 81% year-on-year, driven by Gardant contribution and by very positive trends in non-NPL servicing and recurring value-added services. In Spain, revenue declined only by EUR 1.7 million year-on-year, as the third quarter was stable year-on-year, while in the first half, declining reels were mitigated by improvement in all other categories. On page 10, we show how we continue to successfully contain a natural increase in operating costs from the consolidation of Gardant, thanks to continued cost discipline, which allows us to unlock savings across functions and markets.
Indeed, cost containment remained a key focus for the group, even in the current context of business expansions. In the first nine months of 2025, HR costs were up by 25% versus the same period in 2024, linked to the effect of Gardant consolidation. The increase slowed down versus the first half of 2025, thanks to the initial effects of synergies unlocked. HR costs increased in Greece due to the onboarding of new portfolios in the first half of the year. This effect was effectively mitigated by cost containment measures in Spain and Italy. When it comes to ET, real estate, and SG&A expenses, we recorded an increase of only EUR 5.4 million year-on-year, thanks to already achieved EUR 5 million synergies that mitigated the effect of Gardant consolidation.
On page 11, EBITDA ex NRI for the group was EUR 137.2 million, up 43% versus the first nine months of 2024, thanks to the continued positive performance of recurring value-added services, driving revenue and the acceleration of the synergies, which more than offset the lower disposal in Greece. EBITDA ex NRI margin increased significantly, thanks to the accretive impact of Gardant and non-NPL servicing and continued focus on cost containment. EBITDA for the Italy region decreased by 5% year-on-year to EUR 74.5 million, as positive trends in UTPs and value-added services were more than offset by the year-on-year decrease in disposals in the first nine months, with an improvement in profitability in the third quarter.
The region delivered EBITDA margin of 46.7%, generating over half of the group's profitability. In Italy, EBITDA rose to EUR 71.1 million, excluding group costs, an increase of EUR 46.2 million versus the first nine months of 2024, thanks to Gardant, on which we are accelerating the release of synergies, as well as to positive contribution of value-added services to gross revenue. Gardant continues to contribute proportionally to our full-year expectations. In Spain, EBITDA delivered positive growth, albeit on a small contribution, thanks to continued cost efficiencies and new portfolio onboardings. Non-recurring items were limited to -EUR 4.4 million, despite the cost of integration of Gardant, mostly related to fee linked to coeo, leading to an EBITDA reported of EUR 132.8 million.
Moving to page 12, we show very positive dynamics in net income evolution, which, excluding non-recurring items, more than doubled year-on-year, despite the higher financial costs and the new minorities related to BPER and Banco BPM inherited through the Gardant acquisition. Breaking down the number, we start from a higher EBITDA driven by positive momentum across key products and markets. Breakdowns on property, plant, equipment, intangibles, loans, and equity investments were EUR 67.4 million, in line with our expectation, including also Gardant portfolios. Financial interest and commissions increased to EUR 43.7 million, driven by the interest on the new bond issued in February, which amounted to EUR 14.7 million, including amortized costs, the interest on the new term loan funding the Gardant transaction, which amounted to EUR 20.7 million, including amortized costs, and the residual interest on the 2026 senior secure notes redeemed in February of EUR 1.3 million.
The line also includes EUR 7.3 million non-recurring costs related to the early adoption of the 2026 bond and of the portion 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 nine months of 2024 from the tax claim in Spain. If we adjust for debt, tax is only 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 BPER Bank. The non-recurring items at net income level amounted to -EUR 19.3 million, mainly due to the one-off costs related to the refinancing of the 2026 bond, as well as the EUR 8.8 million costs related to 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 nine months increased considerably to EUR 101.4 million, up a staggering EUR 77.8 million increase versus the first nine months of 2024, as cash conversion tripled over the same period. This positive result was achieved thanks to continued reduction in net working capital, thanks to improved control of the invoicing cycle for the securitization and positive dynamics in advance payments. We confirmed our target of EUR 15 million positive effect from working capital in the full year. CapEx was EUR 15.5 million, with acceleration expected in the fourth quarter, in line with the historical seasonality, as well as full-year guidance. Lease payments slightly increased versus previous year to EUR 14.2 million due to Gardant's offices, mitigated by real estate efficiencies carried out by doValue.
Redundancies decreased slightly year-on-year to EUR 8 million in nine months, mainly from the effect from the voluntary exit program part of the Gardant integration, which is expected to continue in the fourth quarter. Other change in other assets and liabilities was slightly higher, driven mainly by payments for legal cases and circa EUR 9 million temporary impact of the 2024 MBO paid in 2025, higher than the nine months' 2025 MBO accrual. This negative effect will be offset by year-end. Free cash flow was significantly higher than the previous year at EUR 141.5 million, up from negative EUR 15.5 million in the first nine months of 2024. The EUR 57 million increase in free cash flow was a notable result, in line with our ambition to return to the historical levels of cash generation.
The slight decrease in free cash flow in the third quarter was expected due to the tax-down payments and the coupon on the new bond, both paid in the third quarter. Minorities of EUR 7.7 million linked to BPER and Banco BPM were unchanged versus the first half, and no further significant payments are expected to minorities in 2025. Investment in equity and financial assets includes the earn-out for doValue Greece, paid in January 2025. We confirmed our full-year guidance of EUR 60 million-70 million free cash flow before debt repayment. Based on this, doValue currently trades at a free cash flow yield of around 13%, which is exceptionally high and aligned with the expected valuation of our stock. To conclude, let's now move on page 14 and look at our financial structure.
Net leverage at the end of September stood at 2.3 x on a pro forma basis, with 12 months of Gardant EBITDA decreasing from the 2.4x level at December 2024, and exactly in line with the level reported at the end of the first half. This is a very positive result when considering the typical seasonality of Q3. Historically, leverage tends to increase in this quarter due to concentrated cash outflows before declining again at the year-end. For example, last year, leverage moved from 2.9 x in June to 3.1 x in September, before closing at 2.4 x in December. Maintaining 2.3 x in the first nine months, despite these seasonal dynamics and extraordinary cash outflows related to earn-outs and minorities, confirms the robustness of our delivery impact, progressing steadily towards our targets.
We also maintain a solid liquidity buffer of EUR 257 million, including EUR 135 million of undrawn revolving credit facilities, even after the payment of the first tranche of the term loan amortization and the interest on both term loan and the 2030 bond. Our corporate rating remains stable at BB, with a stable outlook confirmed by both Fitch and Standard & Poor's, following the announcement of the coeo acquisition and the recent bond issuance. Overall, this set of results confirms that we have continued to deliver on our targets with discipline and consistency, strengthening our foundations and positioning doValue to achieve its full-year guidance and long-term strategic ambitions. This is all on our side today. Thank you all for your attention. We will now take your questions.
Thank you, sir. This is a 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 your question, please press star and two. Please pick up the receiver when asking questions. The first question comes from Tommaso Nieddu of Kepler Cheuvreux.
Hello, and thank you a lot for taking my questions. The first one is on your shoulders. There have been some market rumors suggesting a potential overhang linked to the position of your anchor shoulders. Could you please comment on this and whether there have been any discussion or signals regarding possible changes in their ownership, and then if you can provide the reassurance about their continued commitment to doValue. The second one is on new mandates. You have already surpassed the EUR 12 billion target on new mandates for 2025, targeting, if I understood well, around EUR 14 billion for the end of the year.
Looking ahead to 2026, do you expect a continuation of this momentum and still on forward flow agreement? Do we have any news on Santander's contract renewal? The last one on networking capital. Over the last three quarters, you have had a positive release of around EUR 24 million. Do you still expect for the end of the year around EUR 10 million-EUR 15 million? I think you already answered this, but I wanted to be sure. Implies around EUR 10 million absorption in Q4. If you can give us more color for 2026. Thank you.
Thank you, Tomazo, for your question. On the first point, we have no indication from our shareholders of any intention to sell their stake. We have not been involved in any such process. Given the strategic nature of their investment and our tight partnership in servicing, a relevant amount related to their investment in MPEs, we strongly believe that the shareholders are more interested in the strategic nature of their holding in doValue rather than short-term monetization. Moreover, given the current valuation levels and the growth prospects, especially after the coeo acquisition, in which our shareholders are strong supporters, it would not be financially reasonable to sell at these prices, for sure.
On your second question on new mandates, yes, I indicated that we did not increase the guidance because, honestly, we are at the end of the year. It did not really make sense to upsize it twice. I see that we will close the year probably at around EUR 14 billion. For 2026, we are finalizing our budget. Our original guidance was EUR 8 billion per annum, including the EUR 2 billion forward flow. Clearly, on the forward flow side, we have a positive element which comes from the Sondrio agreement. Also, to your other point, we see positive news on the Santander side that we will communicate more officially in the next couple of weeks, while we were already estimating the exit, obviously, of the forward flow from UniCredit.
Overall, the outlook on the new business is positive. I do not feel like giving today an upsize guidance for 2026. Probably we can give it as soon as we announce these full-year 2025 results and finalize the budget estimates. Also looking into the current market dynamics and opportunity we foresee in all the countries as we are today.
Going to your question on working capital, I confirm that our guidance for the full year is to have working capital impact of roughly EUR 15 million. This is because in the last quarter, we are growing a lot in terms of revenue EBITDA, as always happened according to our historical trends. We will have this absorption of roughly EUR 10 million. Going forward in 2026, we see a normalization in the working capital dynamics. Probably we will have still a positive impact, but of a lower amount, probably around EUR 5 million of positive contribution from working capital. From 2026 onwards, we will expect to have a normalized working capital with zero impact in terms of contribution to the cash flow.
Thank you a lot.
The next question is from Simonetta Chiriotti of Mediobanca.
Hi, good morning all. A couple of questions from my side. The first is on coeo. In the last call, you shared with us the progress of this company in the first five months. I'm wondering if you can provide us an update on this front. Second, looking at the third quarter trends in isolation, it is visible a lower revenue growth year-on-year, while EBITDA continued to progress at around 30%-35%, which, if I remember well, was your target for the year. If you can explain these trends, maybe give me some color also in the different markets. Finally, tax receivable were flagged in the past as an opportunity in Italy and in Greece. Also on this side, if it is possible to have some color and updates. Thank you.
Thank you, Simonetta, for your question. On coeo, I just visited them last week. They are progressing well ahead of their seller plan. They will close the year much above our buy-side case, probably in the area of EUR 85 million-EUR 90 million EBITDA. Both in terms of new business opportunities, they are adding new clients and enlarging the perimeter of the current clients they service, especially on the banking clients they serve, like Santander, Consumer Finance. They are enlarging the size of the tickets they manage, while adding more on the utilities and the telecom space.
In terms of your last question, and then I leave to Davide the second, clearly now the opportunity is more clear on the side of the budget law. What the government seems to have created is a project whereby they will tackle for the beginning of the next year the local receivables, while they will then tackle in a second phase the central receivables. The local one will be supported for the recoveries from AMCO as a sort of master servicer.
There, the size of these claims is around EUR 40 billion-EUR 45 billion, spread around the different regions. Obviously, we are in contact with AMCO to support them in these activities. These are mostly small tickets unsecured. The capabilities we have tried to develop organically for the small tickets for corporates, as well as the competencies and the operating platform of coeo, will definitely help for this type of claims. While for the central tax receivable, the one of the Agenzia delle Entrate, to be clear, these are more close to the larger loans, both secured and unsecured, that are closer to our traditional model. I would say that the market is opening to the servicing, and we are there to tackle both opportunities with all the instruments in place, also thanks to the latest M&A.
On the revenue question, we do not see a reduction in revenue. The only reason why the Q3 was weaker was because of lower secondary sale increase. This was expected from us because we will recover the sales in the last quarter. We have a good pipeline with already process in place to be finalized by December. On the other revenues, we saw a continued growth in non-MPL and the value-added services. The third quarter is not always a strong quarter, as you know. If you look at the nine months, we are exactly in line with the expectation in terms of growth and also in terms of the full-year target.
Also, taking into account that the new portfolio onboarded, especially in Greece, at the beginning of the year, most of them were coming from PQH, which was the bad bank of Greece. They were not actively managed. What the team has done in these last six months is to activate the legal procedures and the more aggressive approach servicers traditionally have to be able to have the effects of those on collection by next year.
Thank you.
The next question is from Davide Giuliano of Equita.
Hi, good morning, and thank you for taking my question. The first one on the contract extension with Popolare di Sondrio. Can we expect a contract extension to start generating revenues in 2026, or can we see something already in 2025? The contract with BPER included the one-off transfer of some MPEs. Can we expect something similar with Popolare di Sondrio? The second one on indemnity fees. What contribution do you expect from indemnity fees in Q4? Regarding value-added services, can we expect a similar performance in Q4 as last year was pretty solid on this front?
Third one on Greece. Over the last two quarters, we have seen a decline in servicing year-on-year with declining collection rate despite higher average gross book value. What trends are you seeing in the region? On the cost side, we have seen a significant reduction in personnel costs in Greece. Can you give us a little more detail on the underlying dynamics, and can we assume this level at run rate? Another one, if I may, do you see room for further synergies with Gardant beyond the EUR 15 million announced, and how much of the EUR 10 million synergies already achieved in 2025 are included in nine months' results? Thank you.
Good morning, Davide. On the contract extension, we will see the impact in 2026 from Sondrio addition, also because the merger will technically happen next year. We see a contribution that will be of MPE stock at the beginning, which will be assessed on the basis of the numbers at the time of closing. We estimate in around EUR 500 million or just above that number. In terms of your question on Greece, the reality is that it is a little bit linked to the point I made before. The new portfolio onboarding, given the origin of this portfolio, will have most of the effect next year.
You see this year more the effect of the stock, which is the original stock that was declining, and you do not see the effect of certain secondary sales that are expected this year more in the first Q and not in the third Q, while you saw them on the collection side last year in the third Q. On an organic basis, also without the new portfolios and without the secondary sales transaction, the collection rate is improving. In terms of cost, we think we can do in Greece much better. Remember that Greece was a carve-out of a bank plus an original company that Eurobank already had. Therefore, as any carve-out, it leaves space and headroom for efficiencies along the way.
We have not done too much effort on the efficiency in Greece up until this year because of the growth of the market. We did not want to create any potential negative knock-on effect on collection. Now I think the company is quite stable to be able to be more efficient on that front too. Also, another big project we are going to complete by January in Greece is the detachment from Eurobank in terms of systems. We still had some legacy infrastructure connected to that that we are going to exit completely. It has been a major migration of portfolio from some of the legacy Eurobank systems to ours, which will also bring IT savings.
In terms of Gardant, we had indicated that as of today, we have already locked in EUR 13 million run rate savings of the EUR 15 million. So we are actual around EUR 7 million as of today. We will be higher by year-end in terms of the EUR 5 million. We are very close to the EUR 15 million. We shall be more positive for next year's target.
On the sales fees, we have a pipeline to have in the last quarter roughly EUR 15 million-EUR 18 million. This is why we also gave a range as a target because the secondary sales mostly are already locked in. We need just to execute the process. There are some sales that could happen at the end of December or January. We will have this number that will help us to reach our target or even a higher range of the target. This is only for the fourth quarter. The EUR 15 million is for the fourth quarter.
In terms of ancillary and value-added services, we will continue the path we have seen in the last nine months. As always, the fourth quarter is also a good quarter for these services, mainly the ones that are related to the volumes, like legal services and services master that will grow always in the last quarter of the year.
Thank you.
As a reminder, if you wish to register for a question, please press star and one on your touch-tone telephone. For any further questions, please press star and one. We have a follow-up question from Davide Rimini of Intesa Sanpaolo.
Good morning. Thank you for taking my questions. Actually, they are pretty much follow-up questions since they've been already posed. The first is on Greece. I was wondering whether, out of what you described in terms of better development in terms of top line expected next year and the actions on top that you just described in terms of efficiency, whether you would commit to be back to 50% level margin in 2026. The second question would be a follow-up. I noticed that you put a slide on the 18-month pipeline, which is now envisaged at EUR 45 billion. If I'm not mistaken, it was EUR 49 billion at the first presentation. You put a breakdown between countries. I was wondering whether you might expand a little bit more on that one. Thank you.
Yes. On the Greece, maybe to clarify, we actually said that no, the trend will be positive overall in terms of revenue, both because of the legal action activity on the new portfolio that will yield results in 2026, and also for the growth of all the new services that we have developed in Greece over the last three years. Taking into account that for us, Greece is not only servicing, but it's a real estate company, advisory company, FinTHESIS, which is a mortgage broking company.
We have just set up a new company, [doServe], to serve small ticket unsecured for utilities, corporates, and state receivables, given that new auctions and RFPs are coming to the market in the fourth quarter and in the first quarter of 2026, and require a dedicated company, given that in Greece, the main company regulated by Bank of Greece can only manage banking receivable by regulation. On top of it, the efficiencies on the cost side will definitely confirm the margin that we are seeing in the country. In terms of pipeline, clearly, there are some transactions in and some out in the pipeline. Some of the mandates have just been assigned to others or have been dropped by the seller, while new ones have been added.
Where we see new mandates more active has been in the third Q in the Spanish market, where we are working actively with the funds on four projects that we will know, I mean, if they're won or not by the end of the year. On top of the enlargement of the scope for non-financial receivables, given that our platform there is becoming more solid. It is just a trend of new projects in and out. Taking into account that our pipeline is built bottom-up with the names and size of a single project, it is not just a percentage of market estimate. It is quite detailed.
Thank you.
Mr. Della Seta, at this time, there are no questions registered, sir.
Thank you very much always for your time and your attention to us. Have a good day.
Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.