News

W.A.G Payment Solutions Reports 1H Profit Decline, but Revenue and Earnings Increase

James L. Flint

• September 07, 2023

W.A.G Payment Solutions, also known as Eurowag, has announced a decrease in pretax profit for the first half of the year. This decline is attributed to one-off costs from acquisitions and the implementation of a transformative program. However, despite the profit dip, the company has reported higher revenue and adjusted earnings.

The U.K.-listed integrated payments and mobility platform revealed a pretax profit of €8.5 million ($9.1 million), compared to €13.4 million in the same period last year. This decrease is primarily due to increased depreciation resulting from the capital expenditure program, the inclusion of new acquisitions, and higher interest costs following the acquisition of Grupa Inelo.

On a positive note, net revenue experienced a significant surge of 37%, reaching €119.1 million. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose from €35.0 million to €50.2 million. These favorable financial results are largely attributed to the benefits gained from recent acquisitions.

Eurowag acknowledges the challenges posed by market headwinds and its transformational program. As a result, the company expects near-term net revenue growth to be around the mid-teens. However, it anticipates a return to high-teens growth in the medium-term. Despite these projections, the company maintains that its full-year expectations remain unchanged.

Founder and Chief Executive Martin Vohanka expressed his confidence in unlocking further value for both customers and shareholders through the launch of their integrated platform and successful integration of acquired businesses.