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

Executive summary

• Achieved double-digit revenue growth of 14% year-over-year to €292.5m, with strong performance in both payments and mobility segments despite macroeconomic headwinds.

• Adjusted EBITDA rose 12% to €121.7m, with margin stable at 41.6%.

• Net leverage reduced from 2.9x to 2.3x, returning to the target range.

• Board proposed a special dividend of GBP 0.03 per share (~€25m), subject to AGM approval.

• Continued rollout of the integrated digital platform, aiming to migrate 30% of customers in 2024.

Financial highlights

• Net revenues rose to €292.5m, driven by mid-teens growth in payments and mobility.

• Adjusted cash EBITDA up 23.2% to €88.7m.

• Payment solutions revenue up 13.6% to €166.9m, with toll revenues up 50.2%.

• Mobility solutions revenue up 14.6% to €125.6m, with Inelo contributing €53.1m.

• Adjusted profit before tax and EPS declined due to higher depreciation, amortization, CapEx, and finance costs.

Outlook and guidance

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

• Cash EBITDA expected between €90–100m for FY 2025.

• Capitalized R&D to remain capped at €50m; net leverage expected to fall to 2x after dividend.