Banqup Group (BANQ) H2 2024 earnings summary

Executive summary

• 2024 marked a year of significant change, with new leadership, improved governance, and a strategic focus on core digital services and SaaS transformation, supported by a new CEO with international software expertise.

• Major divestments and balance sheet de-risking were completed, including Fitek, Onea, Serbian print activities, Identity Netherlands, and 21 Grams, reducing net debt and reshaping the financial position.

• Achieved objectives set in Q2 2024, including portfolio rationalisation, operational efficiency improvements, and cost discipline.

• The company is positioned for growth in 2025, focusing on operational efficiency, partnerships, and regulatory-driven market opportunities in core European markets.

• Company rebranding to Banqup planned for 2025 and received first-time EcoVadis ESG recognition.

Financial highlights

• Total revenue from continued operations was €84.3m in FY 2024, down 10.5% year-over-year; digital revenue reached €47.1m.

• Digital services gross margin improved to 59.7% year-over-year.

• EBITDA from continued operations was negative €9.2m, a 17% improvement from the prior year.

• Net debt at year-end was €29.5m, down by €72.9m due to divestments; year-end cash balance was €14.5m.

• Profit for the year, including discontinued activities, was €71.2m, reflecting capital gains from divestments.

Outlook and guidance

• 2025 is set as the execution year, with a focus on leveraging regulatory mandates in Belgium (Jan 2026) and France (Sept 2026), and targeting ~25% subscription revenue growth.

• Guidance for 2025 includes positive free cash flow and continued cost reduction.

• Growth in subscription revenue is expected to accelerate in the latter part of 2025 due to compliance deadlines.

• Focus on geographies with imminent e-invoicing regulations and upselling payment solutions.