The Platform Group (TPG) CMD 2025 summary

Strategic direction and business model

• Pursues a dual organic and inorganic growth strategy, targeting 20,000 partners and 30 industries by year-end 2025, with 3–8 acquisitions annually focused on niche, profitable e-commerce platforms.

• Annual investments of €5–7 million in software development drive operational efficiency and scalability across acquired companies.

• Centralizes support functions while maintaining decentralized operational independence for portfolio companies, fostering best practice sharing and entrepreneurial culture.

• M&A strategy prioritizes synergy, fair valuations (3–5x EBITDA), and integration of small to mid-sized, profitable niche companies with proven management and strong IT fit.

• Expansion beyond Western Europe is underway, with initial steps in the U.S. and India, leveraging marketplace integrations to test new markets before launching dedicated shops.

Financial performance and guidance

• 2024 GMV reached €903 million (+28% YoY), net revenue €524.6 million (+19%), adjusted EBITDA €33.2 million (+47%), and net profit €35 million.

• Earnings per share rose to €1.70, exceeding expectations, with a 7% YoY increase.

• 2025 guidance: GMV €1.2 billion, revenue €590–610 million, adjusted EBITDA €40–42 million, and leverage targeted at 1.5–2.3x EBITDA.

• Midterm (2026) guidance: revenue of at least €700 million, GMV of at least €1.5 billion, and 7–10% EBITDA margin, assuming no further M&A.

• Over 50% of 2024 revenue growth was non-organic, driven by acquisitions such as ÖGL Group and 0815.

M&A activity and integration

• Nine acquisitions completed in 2024, including Chronext, Firstwire, Lyra Pet, and 0815 Austria, with a pipeline focused on finance, luxury, and optician platforms.

• Integration emphasizes operational synergies, cost reduction, and leveraging proprietary software and centralized services (HR, finance, marketing).

• Typical acquisition size ranges from €3–100 million, with earn-out structures and equity incentives to retain management.

• ROI targets for acquisitions are above 23%, with a payback period of around four years; case studies show ROI targets above 20–30% within 1–2 years post-acquisition.

• Exit is considered only for extraordinary offers; current focus remains on long-term value creation.