TIDMWPS
RNS Number : 0274R
Eurowag
24 October 2023
24 October 2023
W.A.G payment solutions plc
("Eurowag" or the "Group")
Trading Update
Solid performance, in-line with expectations
W.A.G payment solutions plc ("Eurowag", or the "Group") a
leading pan-European integrated payments and mobility platform
focused on the Commercial Road Transportation industry ("CRT"),
today announces its trading update for the nine-month period ending
30 September 2023.
Financial highlights for 9 months:
-- In the 9 months net revenue grew 35.5% to EUR183.7 million(1)
, supported by sustained organic growth from both the acquisition
of new customers and cross-selling of new capabilities, as well as
the significant contribution from our Inelo acquisition.
-- In the 9 months organic net revenue grew 17.1% to EUR158.7
million(2) , driven by strong growth in mobility solutions.
o Mobility solutions organic revenues, which now includes
Webeye, grew 36.6%(2) as a result of effective cross-sell and new
automotive strategic partnerships. This is also reflective in the
Q3 mobility solutions organic revenues which grew 28.1%
year-on-year.
o Payment solutions organic revenues grew 9.3%(2) , with
economic headwinds continuing to impact the CRT industry,
reflecting fewer kilometres driven. These headwinds continued into
Q3, and as a result payment solutions organic revenues in the
quarter were flat year-on-year.
-- If Inelo had been acquired at the start of the financial
year, net revenue contribution to the Group would have been EUR34.4
million.
-- Net revenue for the last twelve months grew 33.7% to EUR239.0 million.
Martin Vohánka, CEO and Founder said:
"I am pleased to report that the Group delivered a solid
performance in the first nine months of this year, once again
demonstrating the resilience of our business model as well as the
mission critical nature of our solutions. Our strong double-digit
organic growth was achieved despite the macroeconomic headwinds
across Europe impacting the CRT industry through a slowdown in
freight demand, and therefore fewer kilometres driven.
Following recent acquisitions, our revenue mix has been further
diversified towards mission critical data-centric software
solutions, and we are capitalising on the synergies and significant
cross-sell opportunities presented. We continue to deliver on our
priorities of integrating our newly acquired businesses as well as
deliver on our vision of providing the industry's first integrated
end-to-end digital platform, launching in Q4 2024. All of this
gives me confidence that we will continue delivering value for all
stakeholders, whilst our full year expectations remain
unchanged."
N et revenue Year-on-year O rganic Organic
(EURm) growth revenue year-on-year
(%) (EURm)(2) growth
(%)
9M 2023(1) 9M 2022
Payment solutions 106.0 96.9 9.4% 105.9 9.3%
Mobility solutions 77.7 38.7 100.8% 52.9 36.6%
Total 183.7 135.6 35.5% 158.7 17.1%
N et revenue Year-on-year O rganic Organic
(EURm) growth revenue year-on-year
(%) (EURm)(2) growth
(%)
12 months 12 months
to 30 Sept to 30 Sept
2023 2022
Payment solutions 144.0 129.3 11.4% 143.9 11.3%
Mobility solutions 95.0 49.5 91.9% 70.2 41.7%
Total 239.0 178.8 33.7% 214.0 19.7%
Notes: 1. Net revenues include 6 months of contribution from
Inelo following the completion of the acquisition.
2. Organic revenues excludes the contribution from Inelo.
Operational highlights
-- Revenue growth continues to be supported by strong non-financial KPI performance:
o Average number of payment solutions active customers rose from
17,201 in Q3 2022 to 18,519 in Q3 2023, representing 7.7%
year-on-year growth.
o Average number of payment solutions active trucks rose from
86,523 in Q3 2022 to 93,433 in Q3 2023, representing 8.0%
year-on-year growth. The growth in the reporting quarter has
accelerated compared to Q1 and Q2 2023, as a results of trucks from
our Portuguese customers returning to fuel in Spain following the
reverse in the fuel legislation at the end of Q2 2023, as well as
new customer acquisitions momentum in Poland.
Strategic highlights
The Group held its first Capital Markets Day on 11 October 2023,
which included an update on the Group's strategic ambitions,
aligned to the strategic pillars announced at the end of 2022.
Eurowag also presented detailed summaries of its sales strategy and
product offering, with a clear roadmap towards delivering the
Group's integrated end-to-end digital platform. To review all the
materials from the event, please visit the Group's website at
https://investors.eurowag.com/
Outlook and Guidance
As communicated at the half year results, considering the
macro-economic headwinds and the magnitude of the transformative
programme we are undertaking, we expect near-term net revenue
percentage growth to be around mid-teens. In the medium-term, we
expect the net revenue percentage growth to return to high-teens,
reflecting the value creation from our platform through the growth
in customers, the cross-sell opportunities, and the full extraction
of acquisition synergies.
We expect FY 2023 margin levels to be in-line with FY 2022, at
around 43%, accounting for net revenue weighting in the second half
and cost actions already proactively taken, including headcount
reduction ahead of integrating Webeye and Inelo into our
organisational structure. We still expect our margin in the
medium-term to improve to high-forties, as operational leverage and
acquisition synergies are realised.
As articulated at the Capital Markets Day, we expect to finalise
our transformational capex programme by the end of 2023, on time
and within budget. Following the acquisition of Inelo and Webeye,
we expect ordinary capex to move to just above 10 percent of net
revenues for the end of this financial year. The ordinary capex
over the medium-term is expected to be around 10 percent of net
revenues. We anticipate reducing duplications across IT, hardware,
and technology over time through a combination of integration and
the transition to a single technology platform.
Reducing our net debt to adjusted EBITDA within our target
leverage range of 1.5x to 2.5x remains our priority.
The Board's expectations for the full year remain unchanged.
ENQUIRIES:
Eurowag
Carla Bloom
Head of Investor Relations and Communications
+44 (0) 789 109 4542
investors@eurowag.com
Instinctif Partners
Galyna Kulachek and Bryn Woodward
IR and International Media
+44 (0)20 7457 2020
eurowag@instinctif.com
About Eurowag
Eurowag was founded in 1995 and is a leading pan-European
integrated payments & mobility platform focused on the
commercial road transportation industry. Eurowag's innovative
solutions makes life simpler for small and medium businesses in the
Commercial Road Transportation industry across Europe through its
unique combination of payments solutions, seamless technology, a
data-driven digital eco-system and high-quality customer service.
http://www.eurowag.com
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END
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