Banqup Group (BANQ) H1 2024 earnings summary

Executive summary

• Digital services revenue grew 12.8% year-over-year excluding divestments, reaching €30.4 million, while total H1 2024 revenue was €50.8 million and the customer base surpassed 1.3 million businesses.

• Major divestments included FitekIN, ONEA, 21 Grams, and Balkan printing, with proceeds used to strengthen the balance sheet and support working capital.

• Strategic partnerships with PostNord Strålfors and Your.World expanded Banqup distribution and market reach, especially in the Nordics and Netherlands.

• The company restructured reporting to focus on digital services, aligning with its strategic direction and regulatory readiness.

• Net loss from continuing operations was €18.95 million, with a total comprehensive loss of €24.77 million.

Financial highlights

• Digital services revenue grew 10.9% year-over-year to €30.4 million, with recurring digital revenue at 91.2%.

• Digital services gross margin improved to 67.0%, while traditional services gross margin was 25.5%.

• EBITDA improved to near break-even at -€26k in H1 2024, with positive €1.9 million in Q2 2024.

• Operating cash flow was €5.5 million; cash and cash equivalents at period end were €18.7 million.

• OPEX reduced by 7% year-over-year; total expenses decreased to €62.1 million from €66.1 million.

Outlook and guidance

• Management targets free cash flow breakeven by end of 2025, contingent on successful divestments and cost-saving measures.

• Digital services revenue growth for 2024 expected in the low teens percentage range, with further upside from regulatory changes.

• Regulatory-driven market expansion anticipated from 2025–2027, with mandates in Belgium, France, and Germany.

• Ongoing investments in R&D and platform readiness to support mass onboarding as regulations take effect.

• Material uncertainties remain regarding market adoption, cost savings, and successful completion of planned divestments.