W.A.G payment solutions (EWG) Trading Update summary

Financial performance

• Net revenue for FY 2024 expected at €292.0m, up 13.8% year-on-year, outperforming market trends in Germany.

• Mobility solutions revenue projected at €125.7m, a 14.8% increase, with growth across all products and annualisation of Inelo.

• Payment solutions revenue anticipated at €166.3m, up 13.2%, driven by toll revenues from CO2 charges in Germany and Austria.

• Q4 2024 net revenue estimated at €76.4m, a 4.9% rise, with robust trading despite lower tax refund revenues and slower navigation business.

Operational highlights

• Active payment solutions customers grew 14.1% year-on-year to 21,555 in Q4 2024.

• Active payment solutions trucks increased 8.6% to 106,828, supported by targeted acquisition and cross-sell campaigns.

• Continued integration of acquired businesses and progress on ERP system and industry-unique data lake.

Strategic initiatives and outlook

• Phased rollout of integrated platform underway, with focus on operational efficiencies and customer returns.

• FY 2025 net revenue expected to grow at low double digits, with adjusted EBITDA margins sustained.

• Capitalised R&D for FY 2025 capped at €50m, with accelerated investment in toll, OEM, and e-wallet solutions.

• Net debt to adjusted EBITDA ratio targeted at 1.5x to 2.5x in FY 2025, supported by strong cashflow.

• Full year results and new KPIs, including cash EBITDA target, to be announced on 25 March 2025.