REG - Eurowag - Trading Update

WAG Payment SolutionsAnnouncement

21/01/2025 07:00

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RNS Number : 0305U  Eurowag  21 January 2025

21 January
2025

W.A.G payment solutions plc

 

("Eurowag" or the "Group")

Trading Update

 

Delivering strong financial results, in-line with guidance

 

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 an unaudited trading update
for the 12 months ending 31 December 2024.

 

Martin Vohánka, CEO and Founder said:

"I am proud of how far the business has come in 2024; we have achieved so much
whilst delivering strong financial results against a challenging macro
backdrop. One of my highlights for the year has been the start of the phased
roll out of our much-anticipated integrated platform. In parallel to
developing the platform, we have continued to integrate our acquired
businesses, are making good progress on the implementation of our scaled ERP
system and continue to build a data lake which is unique to the industry.
Whilst there is still a lot to do in 2025, I am even more confident that the
roll out of our platform and improving operational efficiencies, will create
significant returns for both customers and shareholders in the medium-term."

 

Financial highlights(1):

Total net revenue for the full year is expected to be around €292.0m (2023:
€256.5m), representing 13.8% year-on-year growth, in-line with our guidance
and significantly ahead of the market growth with both toll mileage and PMI in
Germany, Europe's largest market, flat to declining(2) in 2024. Net revenue
growth in the period would have been 9.7%, assuming a full year contribution
from Inelo from 1 January 2023(3).

o  Mobility solutions revenue is expected to be around €125.7m (2023:
€109.5m), representing 14.8% year-on-year growth, driven by growth across
all products and partly the annualisation of Inelo.

o  Payment solutions revenue is expected to be around €166.3m (2023:
€147.0m), representing 13.2% year-on-year growth, mainly driven by growth in
toll revenues as a results of CO(2) related charges in Germany and Austria.

Q4 2024 net revenue is expected to be around €76.4m (2023: €72.8m),
representing a 4.9% year-on-year increase. Underlying trading continues to be
robust as mobility solutions growth was offset on a comparable basis due to
enhanced tax refund revenues in Q4 2023 as a result of the Excise Duty
Bonification Directive in Spain, as well as slowing revenues in our navigation
business, Sygic, as we have started to roll both its strategy and solution
into the new platform, focusing mainly on OEMs and large trucks.

                     Net revenue Q4 2024 (€m)              Net revenue FY 2024 (€m)
                     2024       2023(3)    YoY growth (%)  2024       2023(3)    YoY growth (%)
 Payment solutions   44.1       41.0       7.4%            166.3      147.0      13.2%
 Mobility solutions  32.3       31.8       1.6%            125.7      109.5      14.8%
 Total               76.4       72.8       4.9%            292.0      256.5      13.8%

 

Operational highlights(1):

                                                Q4 2024  Q4 2023  YoY growth (%)
 Average active payment solutions customers(4)  21,555   18,892   14.1%
 Average active payment solutions trucks(4)     106,828  98,366   8.6%

 

Growth in active payment solutions trucks continues to be driven by targeted
campaigns to accelerate customer acquisitions, re-activation and cross-sell in
energy and toll services.

 

Outlook and FY 2025 guidance

The Board remains confident in delivering results in line with full year 2024
expectations.

Looking to 2025's guidance, we expect net revenue growth for FY 2025 to grow
low double-digits and adjusted EBITDA margins to be sustained. This reflects
the weaker macroeconomic outlook for Europe, as well as Eurowag's ongoing
internal priorities, including further platform developments and rollout plans
as well as continued integration and transformation of the Group's technology
and operations.

Given the success we have seen with the take up of certain products and
services we have revised our capital expenditure plans for FY 2025. We believe
it is the right time to accelerate the investment into the development and
integration of certain products into the new platform, which include our toll
solution, the OEM solution and continued investment in the e-wallet
functionality. As a result, we will cap capitalised R&D at €50m, which
excludes other capex items such as infrastructure and onboard units
("OBUs").  With the success of our toll solution as well as geographical
expansion and continued investment in our FMS solution, we have accelerated
the investment in OBUs in FY 2024 to support the growth and expect this to
continue into FY 2025 before reducing over time, as the integrated platform as
well as OEM solutions replace existing hardware.

Despite this additional investment, the underlying strong cashflow means that
we are confident that our net debt to adjusted EBITDA ratio will fall to
within our target range of 1.5x to 2.5x in FY 2025.

The delivery of the integrated platform and continued investment in internal
systems and processes, underpins the Group's confidence in delivering
meaningful returns to both customers and shareholders in the medium-term.

Notice of results

Eurowag expects to announce its full year results on 25 March 2025, where it
will also disclose its new Group KPIs, which will include a cash EBITDA target
for FY25.

 

Notes:

1.        Please note the numbers are unaudited and are therefore
preliminary and growth rates may differ due to rounding.

2.        Source: Truck toll mileage index and production index
manufacturing, Federal Statistical Office, Wiesbaden

3.        Q1 2023 excludes the contribution from Inelo, which was
acquired on 15 March 2023.

4.        An active customer or truck is defined as using the Group's
payment solutions products at least once in a given month.

 

 

ENQUIRIES

Eurowag

Carla Bloom

VP Investor Relations and Communications

+44 (0) 789 109 4542

investors@eurowag.com

 

 

Sodali and Co

Justin Griffiths, Gilly Lock

IR and international media

+44 (0)20 7100 6451

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

 

 

About Eurowag

 

Eurowag was founded in 1995 and is a leading technology company and an
important partner to Europe's CRT 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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