REG - Eurowag - Trading Update

WAG Payment SolutionsAnnouncement

25/04/2024 07:00

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RNS Number : 9352L  Eurowag  25 April 2024

25 April 2024

 

W.A.G payment solutions plc

 

Trading Update

 

Continued momentum into 2024, 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
three-month period ending 31 March 2024.

 

Martin Vohánka, CEO and Founder said:

"We delivered double-digit organic revenue growth in the first quarter despite
the continued macroeconomic headwinds across Europe. Our sales teams continue
to focus on cross-selling our products across our customer base as well as
acquiring new customers. The development of our digital platform continues at
pace, as we prepare for the soft launch in Q4 this year. This platform will
accelerate our business growth and drive greater efficiencies for our
customers. We are encouraged by the solid progress demonstrated at the start
of the year and re-iterate our near and medium-term guidance."

 

Q1 financial highlights:

·    Net revenue grew 31.0% to €68.4 million, supported by sustained
organic growth and the contribution from our Inelo acquisition.

·    Organic net revenue grew 10.0% to €55.2 million(1) in-line with
management expectations:

o  Payment solutions organic revenues grew 8.2%(1) (Q4 23: 7.6%), supported
by 10.8% growth in active trucks and increasing Toll revenue due to
implementation of CO(2) charges in Germany and Austria, which was offset by
continued macroeconomic headwinds across Europe and continued lower kilometres
driven in the market.

o  Mobility solutions organic revenues grew 14.7%(1) (Q4 23: 9.8%) as a
result of effective cross-selling.

·    Net revenue for the last twelve months grew 34.3% to €272.7
million, with organic growth of 11.2%(1).

 

                     Net revenue       Year-on-year  Organic

                     (€m)              growth (%)    year-on-year

                                                     growth (%)
                     Q1 2024  Q1 2023
 Payment solutions   39.2     35.9     9.2%          8.2%
 Mobility solutions  29.1     16.2     79.3%         14.7%
 Total               68.4     52.2     31.0%         10.0%

 

                     Net revenue                                             Year-on-year  Organic

                     (€m)                                                    Growth (%)    year-on-year

                                                                                           growth (%)
                     12 months to 31 March 2024  12 months to 31 March 2023
 Payment solutions   150.3                       140.7                       6.8%          6.4%
 Mobility solutions  122.4                       62.4                        96.1%         22.4%
 Total               272.7                       203.1                       34.3%         11.2%

(Note: 1. Organic growth represents Group growth excluding Inelo and related
synergies.)

Q1 operational highlights

·    Revenue growth continues to be supported by strong non-financial KPI
performance:

o  Average number of payment solutions active customers rose from 17,843 in
Q1 2023 to 19,232 in Q1 2024, representing 7.8% year-on-year growth.

o  Average number of payment solutions active trucks rose from 91,288 in Q1
2023 to 101,183 in Q1 2024, representing 10.8% year-on-year growth. The
quarter-on-quarter growth was a result of a focus by the sales teams on new
acquisitions across our markets, building a customer base to support our move
to a greater subscription model in the future.

 

Q1 strategic highlights

·      Implemented the next phase of the new ERP system in January.

·     Added new acceptance points to our network in Poland, Germany and
Spain, taking our total acceptance points to c.13,500 across Europe. We also
started to operate in Croatia in January, having rolled out our acceptance
points during Q4 2023.

·      Rolled out mobile payments to c.600 acceptance points in Germany
and Poland in the quarter, taking total acceptance points to c.1,400 across
Europe.

·   Successfully launched European Electric Toll Services in Slovakia,
with almost 2,000 new registered vehicles in the first week after launch.

 

M&A updates

·    Today, Eurowag announced the restructuring of the option for the
remaining 19% equity shareholding in FireTMS. Eurowag will buy 7.6% of the
equity shareholding for €3.4 million, paid in two equal instalments in April
and July 2024. The final 11.4% equity shareholding remains subject to an
option mechanism exercisable in H1 2026 and the price is subject to certain
financial and KPI targets met by FireTMS.

 

Outlook and guidance

 

      ·    Near and medium-term guidance reconfirmed: FY 2024 adjusted
EBITDA margins are expected to remain        in-line with FY 2023, at
around 43%, and grow over the medium-term, and the net debt to adjusted
EBITDA      ratio is expected to be moderately above the target range of
1.5x to 2.5x at FY 2024, with a priority to return      within the range in
FY 2025.

 

 

ENQUIRIES

 

Eurowag

Carla Bloom

Head of Investor Relations and Communications

+44 (0) 789 109 4542

investors@eurowag.com (mailto:investors@eurowag.com)

 

Powerscourt

Justin Griffiths, Gilly Lock

IR and international media

+44 (0)20 7250 1446

eurowag@powerscourt-group.com (mailto:eurowag@powerscourt-group.com)

 

 

 

About Eurowag

Eurowag was founded in 1995 and is a leading technology company and an
important partner to Europe's commercial road transport industry, with a
purpose to make it clean, fair and efficient. Eurowag enables trucking
companies to successfully transition to a low carbon, digital future by
harnessing all mission critical data, insights and payment and financing
transactions into a single ecosystem and connects their operations seamless
before a journey, on the road and post-delivery. http://www.eurowag.com
(http://www.eurowag.com)

 

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