Hightech Payment Systems (HPS) H2 2024 earnings summary

Executive summary

• Achieved record total contract value exceeding MAD 1.1 billion, driven by SaaS and PowerCARD V4 adoption among Tier 1 banks, and completed the CR2 acquisition, expanding global reach and product capabilities.

• SaaS transition accelerated, with SaaS revenue reaching MAD 270 million and 93% of 2024 TCV from SaaS contracts, supporting a shift to recurring revenue.

• CR2 integration added EUR 7 million revenue in four months and is expected to contribute EUR 25–30 million in 2025 with a 15–18% EBITDA margin.

• Expanded global footprint with new data centers and offices in North America, Australia, India, and Southeast Asia, supporting scalable SaaS delivery.

• Strategic plan AccelR8 targets global leadership in payment solutions by 2027, focusing on SaaS, AI, and cloud innovation.

Financial highlights

• 2024 revenue reached MAD 1,267.3 million, up 6.4% year-over-year; recurring revenues rose 11.8% to MAD 904.3 million, now 74% of total revenue.

• EBITDA declined 10.9% to MAD 219.8 million, with margin at 17.3% (19.2% excluding CR2); adjusted EBITDA would have been MAD 317–370 million, margin above 26%.

• Operating profit fell to MAD 153.6–163 million (12.1–13.7% margin); net margin decreased to 6.0%.

• Cash position at year-end was MAD 204–204.2 million, impacted by CR2 acquisition and SaaS investments.

• Backlog grew 7.8% to MAD 885 million, with recurring revenue now 74–85% of backlog.

Outlook and guidance

• 2025 guidance: revenue growth of 20–30%, EBITDA growth of 30–35%, with margin improvement as SaaS contracts ramp up.

• CR2 expected to deliver EUR 30 million revenue and 15–18% EBITDA margin in 2025.

• By 2027, SaaS contracts signed in 2024 projected to contribute over MAD 180 million annually, with full impact by 2026–2027.

• Dividend of MAD 7 per share proposed for 2024.