Hightech Payment Systems (HPS) H2 2023 earnings summary

Executive summary

• FY 2023 revenue reached MAD 1,191.5 million, up 18.3% reported and 20.0% at constant exchange rates; regular and recurring revenue rose 16.3% to MAD 808.6 million.

• AccelR8 targets were achieved; PowerCARD V4 rollout, SaaS wins, Tier 1 client growth and geographic expansion supported growth.

Financial highlights

• EBITDA was MAD 246.6 million, up 18.8%; adjusted EBITDA was MAD 271 million, up 30.3%.

• Operating income rose 20.1% to MAD 196.4 million; operating expenses were MAD 995.1 million, up 17.9%.

• Net income attributable to shareholders fell 14.6% to MAD 99.9 million; EPS was MAD 13.50 versus MAD 16.64 in 2022.

• Adjusted revenue was MAD 1,166 million, up 19.0%; reported revenue growth was 18.3%.

Outlook and guidance

• 2024 organic growth guidance is 12%–17%, excluding M&A; EBITDA margin is expected at 20%–22% and flat year over year.

• 2027 targets include 12%–17% annual organic growth, a 25%–30% EBITDA margin and external-development contribution to average annual growth of 10%; M&A target contribution is $40–80 million.

• New-logo pipeline represents MAD 2 billion in sales; Q1 wins included a first US SaaS customer, a major Central European bank and three Caribbean banks.

• Backlog declined 12.2% in 2023; management cited stronger and accelerating opportunities for 2024 and beyond.