Nexi Announces Dividend Increase and Navigates Market Volatility
Nexi, a leading payments group, is set to distribute €1.1 billion in dividends to shareholders over the next three years, beginning with a €350 million payout this year. This decision, announced as part of the company’s 2028 plan, prioritizes direct returns to investors over a share buyback program. CEO Paolo Bertoluzzo explained the preference for dividends, stating, “It is one of the highest dividends in the sector… We preferred it to the buyback because we desire to give a message of continuity to investors.”
Market Reaction and Shareholder Shift
Despite the positive dividend news, Nexi’s stock experienced a significant drop on the day of the announcement, opening with a 20% decline. Bertoluzzo acknowledged the challenging market conditions, stating, “The market period is not particularly calm,” but emphasized the company’s commitment to long-term growth through strategic investments in products, technologies and growth areas.
The company is observing a shift in its shareholder base, moving away from investors focused on high growth towards those prioritizing cash generation. Nexi anticipates generating €800 million in cash annually.
Goodwill Devaluation and Financial Performance
Nexi recently undertook a non-cash devaluation of €3.7 billion in goodwill, resulting in a €3.4 billion loss in 2025. This devaluation was necessary to realign the book values of past acquisitions – specifically Sia and Nets – with current market multiples within the payments sector.
Excluding this extraordinary charge, Nexi reported revenues of €3.6 billion, an operating margin of €1.9 billion, and a profit of €783 million. Cash generation stood at €806 million and is expected to remain at similar levels in the coming years, reaching a total of €2.4 billion over the three-year period.
Strategic Focus and Investment Areas
Nexi intends to maintain its market share in Italy and the Scandinavian markets, where it currently holds approximately 50-60% of the market. The company also aims to expand its presence in German-speaking countries (Germany, Switzerland, Austria) and Poland, particularly within the small and medium-sized business segment.
Key investment areas include e-commerce payment solutions, which currently represent around 6% of Nexi’s turnover, and artificial intelligence (AI). Bertoluzzo highlighted the potential of AI for efficiency gains, noting that the company’s 1,500 developers are already experiencing productivity improvements of over 25% through AI integration. Nexi is also forming partnerships with industry leaders like Visa and Microsoft to explore AI applications in agent commerce.
Collaboration and Digital Euro
Nexi is actively collaborating with the European Central Bank (ECB) on the development of the digital euro, further solidifying its position as a key player in the evolving digital payments landscape. Bertoluzzo emphasized that Nexi has “consolidated a unique positioning in the European digital payments landscape establishing itself as a trusted platform.”