Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can we expect the dividend levels to be sustainable ahead, or are they more opportunistic due to specific points in 2024? Also, what are the drivers for the top-line guidance for 2025? A: (Luis Blanco, CFO) We have not established a formal dividend policy going forward, but our capital allocation strategy remains unchanged. We aim to capture both organic and inorganic growth opportunities, including acquiring 200 seats per year. The dividend payment of 20% of 2024 net income was an opportunity we saw this year. Regarding the 2025 guidance, we are confident in achieving it, as we have consistently met our guidance in previous years.
Q: How should we think about the M&A pipeline following the dividend announcement? Are you seeing a high offering, and what are your expectations for M&A in 2025? A: (Virgilio Gbo, CEO) We are not changing our long-term guidance for inorganic growth. We will continue to pursue M&A opportunities while also starting to pay dividends. We have a milestone in the first semester of this year that may require additional CapEx. The M&A pipeline is active, and we are being selective in terms of asset quality and region.
Q: Should we continue to see the continuing education segment expanding in 2025? What is the outlook for this segment? A: (Luis Blanco, CFO) Yes, we expect the continuing education segment to expand in 2025. We have a large cohort of students graduating in the second semester, and the intake level that started in October-November was quite high, indicating potential for even higher growth than in 2024.
Q: Regarding the 2025 guidance, what are the main drivers for the expected expansion in adjusted EBITDA margin? A: (Luis Blanco, CFO) The expected expansion in adjusted EBITDA margin is driven by operational leverage, particularly in the undergrad segment, and efficiency opportunities in digital and medical practice solutions. We also anticipate capturing opportunities in holding and shared services, supported by our budget methodology implemented two to three years ago.
Q: What are your thoughts on the recent comments about monitoring prices in medical schools and the proposal for a proficiency exam for physicians? A: (Virgilio Gbo, CEO) We support initiatives that raise quality standards in the market, such as the proficiency exam for physicians. Regarding pricing, higher education pricing is stable based on federal law, and it's too early to determine the impact of recent comments on regulation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.