W.A.G payment solutions (EWG) H2 2024 earnings summary

Executive summary

• Achieved double-digit net revenue growth of 14% to EUR 292.5 million, with strong performance in both payments and mobility segments despite macroeconomic headwinds.

• Cash EBITDA increased by 23% to EUR 88.7 million, and adjusted EBITDA rose 12% to EUR 121.7 million, with margins stable at 41.6%.

• Net leverage reduced to 2.3x from 2.9x, back within target range.

• Board proposed a special dividend of GBP 0.03 per share (~EUR 25 million), reflecting strong cash generation.

• Phased rollout of integrated digital platform (Eurowag Office) began, aiming for 30% customer migration in 2024 and 80% by 2025.

Financial highlights

• Net revenues up 14% year-over-year to EUR 292.5 million.

• Adjusted EBITDA up 12% to EUR 121.7 million; cash EBITDA up 23% to EUR 88.7 million.

• Adjusted profit before tax and EPS declined due to higher depreciation, amortization, CapEx, and finance costs; adjusted EPS at 4.65c, adjusted PBT EUR 46.3 million.

• Capitalized R&D spend at EUR 35 million, 7.9% of net revenue; EUR 7 million spent on onboard units.

• Free cash flow increased to EUR 147.3 million (FY23: EUR 48.4 million).

Outlook and guidance

• Reiterated guidance for low double-digit revenue growth and stable adjusted EBITDA margins for FY 2025.

• Cash EBITDA expected between EUR 90–100 million in FY 2025.

• Capitalized R&D capped at EUR 50 million; OBU and infrastructure spend to remain at FY 2024 levels.

• Net leverage expected to fall to 2x after proposed dividend.