W.A.G payment solutions (EWG) H1 2024 earnings summary

Executive summary

• Net revenue grew 18.4% year-over-year to EUR 141 million, driven by organic growth, acquisitions, and strong mobility and payment solutions performance.

• Adjusted EBITDA increased 18.2% to EUR 59.4 million, with a stable margin of 42.1%.

• Significant progress in integrating acquired businesses and rolling out the Eurowag Office digital platform, with early adopters onboarded and full rollout on track for Q4 2024.

• Statutory profit before tax fell 50.6% to EUR 4.2 million due to higher amortisation, interest, and depreciation.

• The Board maintains confidence in medium-term guidance despite macroeconomic headwinds.

Financial highlights

• Net revenue increased 18.4% year-over-year to EUR 141 million in H1 2024.

• Adjusted EBITDA rose 18.2% to EUR 59.4 million, with a margin of 42.1%.

• Adjusted profit before tax was EUR 21.6 million; statutory profit before tax EUR 4.2 million.

• CapEx totaled EUR 20.5 million, including EUR 3 million from the completed transformation program.

• Net leverage improved to 2.6x, with net debt at EUR 302.4 million and free cash flow of EUR 50 million.

Outlook and guidance

• Confident in delivering mid-teens revenue growth in the near term, with adjusted EBITDA margins around 43%.

• CapEx expected to normalize at ~10% of net revenue post-transformation.

• Net leverage anticipated to fall within the 1.5–2.5x target range in FY 2025.

• Platform rollout to new customers begins in Q4 2024, with subscription model launching in Q1 2025.