LONDON, UK: W.A.G payment solutions plc, known as Eurowag, a leader in the pan-European payments and mobility sector for commercial road transport, has announced its preliminary financial results for the year ending December 31, 2023. The Group reported a strong performance with a significant increase in net revenue and sustained growth across its business-critical products and services.
Financial Highlights:
- Total Net Revenue: Increased by 34.4% to €256.5 million, with organic growth of 14.5%.
- Payment Solutions: Grew by 9.0% to €147.0 million, bolstered by an 8.4% rise in active payment customers and higher toll revenues.
- Mobility Solutions: Surged by 95.6% to €109.5 million, with organic growth of 28.3%, driven by effective cross-selling and strategic OEM partnerships.
- Adjusted EBITDA: Rose by 33.2% to €108.7 million, with an adjusted EBITDA margin of 42.4%.
Despite a statutory loss before tax of €39.3 million, attributed to amortization, finance costs, and a non-cash goodwill impairment, the adjusted profit before tax stood at €56.7 million.
Operational Highlights:
- Acquisition of Grupa Inelo, S.A., enhancing the Group’s scale and product capability.
- Total capital expenditure of €50.9 million, aligning with the transformational program’s guidance.
- Development of the industry’s first digital platform, with a soft launch expected in Q4 2024.
Outlook: Eurowag enters 2024 poised for growth despite macroeconomic headwinds affecting the commercial road transport industry. The Group remains confident in its medium-term value creation strategy, driven by platform and acquisition synergies. With a focus on delivering mid-teens organic net revenue growth, Eurowag is set to maintain adjusted EBITDA margins around 43% and aims to reduce its net debt to adjusted EBITDA ratio in FY 2025.
The anticipated launch of Eurowag’s digital platform later this year is expected to unlock new opportunities and drive value for customers and shareholders, reinforcing the Group’s position as a pioneer in the industry.
Martin Vohánka, Founder and CEO, commented: 2023 was a year of both significant strategic and financial transformation for the Group, where we completed our largest ever acquisition and delivered further organic growth, despite a range of macroeconomic headwinds across Europe. Whilst these headwinds are expected to persist in 2024, I am confident in the positive outlook for the Group, thanks to substantial investments we have made in the business and in our market positioning.
Eurowag sits at the heart of the European CRT industry, providing a range of critical services that drive increased efficiency and profitability for customers who operate in a highly complicated, admin heavy sector. With only a small proportion of road transport companies having embraced digitisation to date, there is huge potential to grow our customer base.
This will be accelerated with the launch of our industry-first digital platform later this year – a significant milestone for us, that will take our growth to the next level. Consequently, we remain confident in the prospects for the Group and re-iterate our near and medium-term financial guidance, as we unlock further value for both our customers and shareholders.”
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