WAG Payment Solutions Optimistic Despite Profit Decline

2 min read | September 05, 2024 04:47 AM PDT | By Team Kalkine Media

On Thursday, WAG Payment Solutions (LSE:WPS), operating as Eurowag, reported that its trading performance remained on course despite a significant drop in half-year profits.

For the six months ending 30 June, the fintech company specializing in freight services revealed an 18% rise in total net revenue, reaching €141 million. Adjusted earnings before interest, tax, depreciation, and amortization also saw an 18% increase, climbing to €59.4 million.

However, pre-tax profits experienced a sharp decline of 51%, falling to €4.2 million from €8.5 million in the same period the previous year. The company attributed this decrease to the rising costs associated with increased debt levels and higher amortization expenses.

Eurowag, which provides fleet management software and fuel card payment solutions, also highlighted ongoing macroeconomic challenges within the commercial road transport (CRT) sector. These challenges have affected the volume of loads and the number of kilometers driven, impacting overall performance.

Despite these issues, Eurowag indicated that it remains "well-positioned" and is performing in line with expectations. The company observed "some signs" of economic recovery, particularly noting improvements in the load spot market. As a result, the company maintained its near- and medium-term guidance.

Martin Vohanka, the founder and chief executive of Eurowag, remarked on the company’s resilience: "We continue to deliver strong double-digit growth, despite the economic headwinds impacting the CRT industry across Europe. Our resolute focus on providing mission-critical products to our customers has allowed us to create a highly resilient business model, giving us the capacity to enhance our services, scale, and innovate."

Eurowag, established in 1995, anticipates net revenue growth in the mid-teens for the near and medium term. The company also projects an increase in adjusted EBITDA margins once recent acquisitions are fully integrated.

As of 0900 BST, shares in the FTSE 250-listed firm had risen by 2%, reaching 74.2p.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.


Sponsored Articles


Investing Ideas

Previous Next