Eurowag reports strong year-to-date performance

24th Oct 2024 09:47

(Sharecast News) - WAG Payment Solutions, trading as Eurowag, reported a strong financial performance for the first nine months of the year on Thursday, with total net revenue growing 17.4% to €215.7m.

The FTSE 250 commercial road transport payment platform specialist said the growth was driven by both its payment and mobility solutions segments.

It said mobility solutions revenue saw a 20.1% increase, reflecting continued expansion across all product lines and the contribution of recent acquisition Inelo.

Payment solutions revenue grew 15.4%, supported primarily by robust toll revenue growth.

For the last 12 months, total net revenue was up 20.7% to €288.5m, with third quarter revenue increasing 15.5% to €74.6m compared to the same period in 2023.

Operationally, Eurowag said it was focussed on expanding its payment solutions segment, targeting truck acquisitions and reactivation campaigns, and promoting its EVA onboard toll unit.

Additionally, the phased rollout of Eurowag Office, a digital platform for fleet management, was on track for the fourth quarter, with current customers being migrated and new customers set to join by the end of the year.

The Eurowag app continued to grow in popularity, with a 51% year-on-year increase in monthly active users and high ratings on app stores.

In October, Eurowag paid €8.9m in deferred consideration for the remaining 49% equity stake in KomTeS, further consolidating its business.

Looking ahead, the board said it was confident in meeting full-year financial expectations, adding that it saw early signs of economic recovery in the CRT industry.

The ongoing rollout of its platform was expected to underpin the group's medium-term financial targets.

"We continued to deliver high double-digit revenue growth for the first nine months of the year," said founder and chief executive officer Martin Vohánka.

"I am particularly pleased with the pace in which we are migrating our customers onto our new integrated platform, which offers our customers a one-stop shop for tailored solutions enabling them to save costs and enhance their operational efficiencies."

Vohánka said that, having trialled the Eurowag Office platform with over 250,000 users so far, the company was on track for the phased roll out of the app to new customers in the fourth quarter of the year.

"All of this gives me confidence that we will continue delivering value for all stakeholders and our full year expectations remain unchanged."

At 0926 BST, shares in WAG Payment Solutions were up 1.47% at 83p.

Reporting by Josh White for Sharecast.com.